JVC 2012 Annual Report Download - page 21

The Professional Systems business consists of two
segments: communications and business solutions. The
former engages in land mobile radio and its systems,
license-free transceivers, amateur radio sets, and sales of
cellular phones. The latter segment handles infrastructure
system solutions—including security cameras and systems,
professional audio equipment and facilities—as well as
business solutions, such as professional video cameras and
monitors.
The communications segment boasts the worldʼs
second largest market share in the current mainstay area
of land mobile radio equipment. It has achieved this by
combining radio technologies, which have been cultivated
over the many years since the era of amateur radio
equipment, with cutting-edge digital and network
technologies. Featuring a high overseas sales ratio and
high profitability, this segment supplies highly reliable
professional radio terminals and systems to the public
safety sector (police and fire departments), the public
service sector (electricity, water, and gas), and the private
sector (railways, buses, hotels, and plants) around the
world. This segment is focusing on the market shift from
analog to digital equipment. Hence, it is moving ahead
with the development and sale of digital land mobile radio
equipment and systems compatible with the worldʼs
various digital radio formats.
The business solutions segment provides highly
reliable, professional-use video and audio equipment in
such markets as electrical facilities, education and the
public sector, private corporations, and amusement
facilities. The segment achieves this as a business that
shares advanced imaging pickup, video, and acoustic
technologies with the Home & Mobile Electronics
business. Boasting high market shares in the domestic
electrical and amusement facility markets,
JVCKENWOODʼs security cameras are highly rated for
their features. These include sharp image quality even at
night, ease of operability and outdoor installation as
security cameras that are deemed to be among the most
effective in preventing crimes and ensuring people remain
safe and secure. Meanwhile, the Companyʼs professional
video cameras, which have been adopted by a major U.S.
news broadcasting station, are mainly increasing their
To provide radio, image pickup, video, and acoustic technologies to
professionals, we will develop systems to offer excitement and peace of mind
to people across the world.
presence overseas.
We have continued to improve our management base
by reducing expenses and fixed costs thanks to the effects
of structural reforms implemented by the fiscal year ended
March 2011. There was a temporary cost increase due to
switching production to the Yokosuka Production Center
in response to disruption at the Groupʼs plant in Thailand,
where flooding followed heavy downpours that had
begun in July 2011. However, production at the Thailand
plant returned to normal at the end of May 2012, and
sales in Japan have been robust since then.
We recognize that the shift to digital models and the
systematization of land mobile radio equipment present
business opportunities. Therefore, from now on the
communications segment will work to develop solution
systems by integrating wireless and imaging technologies
with an eye on broadband and aim to grow new business
domains to expand sales. Specifically, we will work on
expanding large-scale, wide-area network systems by
making the most of JVCKENWOODʼs proprietary
NEXEDGE® digital professional radio and network
solutions. We will do this by promoting the development
of solution systems through leveraging the console
systems of Zetron, Inc., a U.S. subsidiary engaged in radio
communications systems. The business solutions segment
will reinforce its sales system suited to each market and
region and streamline the product development process.
In addition, we will concentrate on initiatives designed to
expand our existing business domains: an infrastructure
system solutions business, including network security
systems, emergency broadcast equipment, and digital
wireless intercom systems; and a media system solutions
business, encompassing video cameras for broadcasting
and professional use, such as next-generation, ultra-high
resolution 4K video cameras and professional monitors.
We will also endeavor to develop new solutions that
provide safety and security by integrating radio, security,
and audio systems. At the same time, JVCKENWOOD will
strive to make the most of its music, image, and network
technologies, and to offer the excitement of reliably
delivering messages, conveying sensitivity, and appealing
to the five senses.
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JVC KENWOOD Corporation