JVC 2007 Annual Report Download - page 10

• Our high-quality image and sound technologies
stem from our technology-driven corporate cul-
ture that is built on many years of experience.
• Our brand power is underpinned by our global
production and sales networks.
• Our business model combines entertainment soft-
ware and hardware and links together what is
created from these.
Our
Potential
JVC’s Brand Statement
“The Perfect Experience”
Our commitment is to deliver truly moving experi-
ences and total customer satisfaction.
Business Vision
Creating new ways to communicate through
music and images
We at JVC seek to offer people new ways to com-
municate with each other while inspiring them with
richer experiences through music and images.
Our
Foundation
• Offer trailblazing AV products using our advanced
technologies
• Retain the policy of compatibility continuation and
storage culture that VHS built
• Provide products that have different features from
those of major manufacturers
• Offer distinctive products through our unique
business model combining entertainment soft-
ware and hardware
Market
Expectations
What We Aim to Be
Returning to the original passion of JVC’s founder of creating stellar
sound and color reproduction, we seek to offer new experiences in the
era of high-definition.
As consumption patterns grow more diverse, we want to become the
maker of choice for consumers with sophisticated tastes and sensibilities,
even in small market niches.
organizational reforms. In Europe, we will follow specialist retailers in
each country by leveraging our strong marketing network in this
region, and enlarge the role of the European head office as a liaison
in responding to the buying centers of leading European retailers.
Developing new channels and marketing regions: In emerging
markets, we will press ahead with our “Challenge 5 (C5) Project” by
using our production and marketing infrastructure effectively to
expand sales in high-growth markets, such as India and Turkey as
well as Central and South America.
Tackling New Challenges while Leveraging Our Corporate
“DNA”
In the 80 years since our founding, we have worked consistently to
be an innovator in sound and image technologies, and in each era
we have delivered high-value-added products based on highly
acclaimed, cutting-edge and original technologies. The corporate
culture shaped by this heritage is our DNA, our corporate identity,
and we believe this is one key source of our competitive strength in
today’s rapidly evolving business environment.
Our brand statement, to deliver “The Perfect Experience”—truly
moving experiences and total customer satisfaction—underscores
our commitment to offering people new ways to communicate
through music and video. We will continue to make this principle a high
priority as we move forward to tackle the challenges of the new era.
Restoring Strength and Appeal to the JVC Brand
In August 2007, we increased the Company’s capital by issuing
61,539,000 common shares to Kenwood Corporation for ¥20 billion
and 46,154,000 common shares to several investment funds man-
aged by SPARX International (Hong Kong) Limited, an asset man-
agement company owned by the SPARX Group, for ¥15 billion.
Through this third-party allotment, we were able to bolster our
stockholders’ equity and secure funding for structural reforms. As a
result of this allotment, JVC was converted from a consolidated sub-
sidiary of Matsushita Electric Industrial Co., Ltd. (MEI), into an equity-
method affiliate of MEI, but MEI will continue to support JVC as our
largest stockholder.
Respecting the brands each has developed over many years,
JVC and Kenwood will, as equal partners in spirit, start to collabo-
rate in the car electronics systems and audio businesses from
October 1, 2007. The goal of this collaboration is to derive the bene-
fits of stronger cost and product competitiveness from greater scale
in R&D, materials procurement, and production and make more
effective use of the resources of the two companies. Moreover, to
reap sizable synergies across the entire operations of the two com-
panies and to enhance the corporate value of each, JVC and
Kenwood will launch the Management Integration Study Committee,
which will consider specific issues, with the aim of management
integration in 2008.
I believe JVC is always ready for challenges, as an organization that
creates new products and product categories. The JVC brand has
over the years become a “familiar face” to consumers around the
world, and in working to restore strength and appeal to the JVC brand
we will do our utmost to meet the expectations of our stakeholders.
Last, I want to thank all our stakeholders for their support and
understanding, and we ask for their continued support going forward.
September 2007
Kunihiko Sato, President and Representative Director
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Offering people fresh and exciting experiences
in sound and video for a new era through our
cutting-edge, original technologies
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