JVC 2010 Annual Report Download - page 7

JVC KENWOOD Holdings, Inc. 5
We expect the effects of those measures to become apparent sometime in the fiscal year ending March 31, 2011 and we project
they will result in an improvement in profit of about ten billion yen after the fiscal year ending March 31, 2012.
⑴ Reform of unprofitable operations -Returning all businesses to the black
① Display segment
－Conversion of the business model (Splitting up of the business and promoting a partnership strategy)
＊Transform itself to a new fabless business model.
＊ In line with this strategy, the functions of the business headquarters will be vested and transferred to the JVCʼs main plant in
Thailand, namely the display manufacturing center, by splitting off the headquarters function. A new strategy will be promoted
by fully utilizing the Companyʼs strengths in branding, marketing, merchandizing and development, as well as its sales network.
At the same time, we will further pursue partnership strategies, after reinforcing competitiveness.
② Camcorder segment
－Reform of competitiveness (Shifting to overseas production and outsourcing)
＊ The Company will accelerate production reform by increasing the level of production by third parties, while reorganizing its
production system by completely the transfer of production bases from Japan to overseas.
＊ We will proceed with reforms to reinforce sales and reduce sales cost by reorganizing sales companies mainly in Europe; to
acquire new sales routes by exploring new markets; and to expand sales.
＊ Regarding the product strategy, the Company will take measures to strengthen cost competitiveness and product competitiveness
while developing a new platform. It will also reinforce our position, ranking second in the world market, by developing a new
category of products.
③ Business Solutions segment
－Integrating operations with the Land Mobile Radio segment of Kenwood
＊ By integrating operations between the Land Mobile Radio segment of Kenwood, which boasts a dominant presence overseas,
ranking second in the world, and the Business Solution segment of JVC which has strengths in Japan, the Company will drive the
development of new multimedia solutions. This will be achieved by integrating technologies of the two companies, combining
sales activities, mutually using sales networks and bases, jointly purchasing materials and conducting other activities to create
businesses in growing markets. These include the public security markets and security markets. At the same time, we will open
the door to emerging markets by developing products destined for Asia, including China and India.
＊ Furthermore, we will strive to expand sales and improve the cost structure by raising the self-manufacturing ratio in the solution
business field including software and services, while reorganizing the production structure.
Management Polic y and Strategies