JVC 2013 Annual Report Download - page 9

Medium- to Long-term Business Strategies
The JVCKENWOOD Group reorganized its operations effective October 1, 2011 through an absorption-type merger
between the former JVC KENWOOD Corporation and three companies that were consolidated subsidiaries at
that time: Victor Company of Japan, Limited (“JVC”), Kenwood Corporation (“Kenwood”) and J&K Car Electronics
Corporation. As a result, JVC KENWOOD Corporation was launched as an integrated company through the merger.
While facing revolutionary times in the electronics industry, the Group formulated a new mid-term business
plan covering the period up to the fiscal year ending March 2016 with the aim of achieving sustainable and
profitable growth, in November 2012.
In this new mid-term business plan, we define the business domains in which the Group can continue to
apply its strengths in such areas as the “smart AV” and the “smart safety” fields with image, acoustic and radio
technologies as well as music and visual software as its core competencies. As the first step in a long-term strategy
centering on these two business fields, we have established the medium-term vision “Re Design.” We have also
launched measures aimed at promoting self-reformation on a Group-wide basis with enthusiasm and a sense of
speed, and re-designing the lifestyles of people around the world by introducing products that deliver excitement
and peace of mind on a progressive basis.
The Group will use profits, generated through these measures, to invest in sustainable growth, strengthen its
financial base, and provide stable returns to shareholders.
Specific Actions for the Fiscal Year Ending March 2014
During the fiscal year ended March 2011, the JVCKENWOOD Group completed the structural reforms that had
been underway since the launch of the Group in October 2008. Then, the Group began to implement a full-
scale growth strategy by optimally leveraging the effects of the structural reforms and synergies of the integrated
company through the merger in the fiscal year ended March 2012.
In the fiscal year under review, the Group carried out a growth strategy centering on the Car Electronics and
Professional Systems Businesses. As a result, we achieved an increase in sales volume of consumer car navigation
systems for the domestic market, an expansion in sales of professional radio systems for North America, and an
improvement in the profit and loss of the Business Solution Segment (professional AV devices), whose performance
recovered from the effects of the Thai floods amid a difficult business environment. In addition, the Entertainment
Business achieved growth due to a series of hit releases.
However, sales of each business in Europe remained sluggish due mainly to the impact of economic
deterioration, lowered prices of car navigation systems in the domestic market amid heightened competition, and
a slow recovery in sales of professional radio systems. As a result of these factors, the Groupʼs sales on the whole
failed to grow.
Against this backdrop, we will reclassify the business units of the four business segments into three groups
according to their characteristics in the fiscal year ending March 2014. These three groups will comprise business
that focus on “expanding profits,” “enhancing earnings,” and “strengthening strategies.”
Creation of values in smart AV field and the smart safety field
Creation of JVCKENWOOD’s new value domains
Mobile phone
base station
Radio base
station
Mobile phone
networks
Systems that combine radio with video
Radio system in combination
with smartphones
Video transmission solution
Head-up display in collaboration
with Syndiant, Inc.
Next-generation “Saisoku-Navi”
(Photograph shows the current model)
Smartphone-Compatible
AV receivers
AV accessory
Cameras compatible with networks
Audio systems in combination with
smartphones
High-resolution projectors
Innovative products
JVCKENWOOD’s
new value domains
High-resolution music software;
distribution of music
Music and video software
Smart AV field Smart safety field
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JVC KENWOOD Corporation
Management Policy and Business Strategy
󱛏Management Policy and Business Strategy