Kenwood 2007 Annual Report Download - page 14

With a view to responding swiftly to the rapidly changing business
environment brought about by technological innovations involving
the progress of the digital/network environment and the diffusion of
digital media, and to implement a next-generation product strategy
by identifying such environments as major business opportunities,
Kenwood has focused its resources on the strategic development of
new technologies and products by advancing investments in
strategic development in addition to its usual R&D activities.
The major initiatives of these investments included the following,
and their positive results should become apparent in the fiscal year
ending March 2008.
In the Car Electronics Consumer (Audio) business, Kenwood moved
ahead with developing medium-/high-class models integrating
seamless features with digital media equipments, new systems
enabling feature enhancement of products that are installed in
vehicles as line-fitted AV products and other proposal-oriented
products that were capable of spurring new demand, and launched
them to markets across the world in the fourth quarter.
In the Consumer (Multimedia) business, Kenwood pushed
forward global staging of new-concept car navigation systems
integrating core of portable navigation devices and AV systems that
it had previously introduced to markets in Europe and North
America, and completed enhancement of product line-up by
developing and marketing terrestrial digital TV tuners and
navigation system integrated with AV equipped with such tuners
built in them for the Japanese market.
In the OEM business, in the wake of completion during the
previous year under review of expansion works at the Shanghai
Plant, Kenwood endeavored to enhance its cost competitiveness by
shifting production of components such as DVD-/CD-drive
mechanisms, etc. from its plant in Japan to Shanghai.
Kenwood sought to achieve closer coordination between the
sales/applied technology functions possessed by its subsidiary in the
U.S. which is the leading market for the Land Mobile Radio business
and the development/design functions possessed by its units in
Japan and, at the same time, upgraded and reinforced each of the
sales/applied technology functions based in Europe. Kenwood also
expanded sales and won new orders in emerging markets such as
Improving competitiveness in businesses
by investments in strategic development
● Strategic development of car multimedia products intended
for consumer markets in Japan and abroad
● Up-front development of car multimedia products intended
for auto manufacturers
● Construction of a “Seamless Entertainment World” of digital
media integrating car electronics and home electronics
● Business partnering in the field of Land Mobile Radio aimed
at R&D for new digital systems and terminals as well as
qualitative expansion from terminals to system solutions
Improving competitiveness of the core
businesses
Car Electronics Business
Kenwood has driven full-scale development and staging
of new products in Consumer business, and has advanced
earnings reform in the OEM business
Communications Equipment Business
Kenwood drove closer coordination between
sales/applied technology functions and
development/design functions, and advanced its
digitization-based growth strategy
During the fiscal year under review, which was the middle
year for “Value Creation Plan,” its mid-term business plan
that was put in motion in the previous fiscal year,
Kenwood advanced the following initiatives aimed at
expanding its corporate value by focusing on growth
strategies including strategic development of new
technologies/new products and business partnering.
Major Achievements for the Fiscal Year Ended March 2007
Kenwood advanced investments in strategic development along
the lines of “Value Creation Plan,” its mid-term business plan
14 Kenwood Corporation
Illustrated progress of the second
mid-term business plan
"Value Creation Plan"
0
1,000
2,000
3,000
4,000
5,000
Net Sales
0
5
10
- 10
- 15
- 5
Investments in strategic development
Historical High Net Income Updated
Historical High Net Income
Strategic Investments
Operating Profit margin
Net Income margin
2001/3 2002/3 2003/3 2004/3 2005/3 2006/3 2007/3 2008/3 Forescast
the mid-term business plan
"Excellent Kenwood Plan"
the second mid-term business plan
"Value Creation Plan"