Olympus 2011 Annual Report Download - page 17

OLYMPUS 2011 15
In the North American market, a boost in demand for endoscopes is anticipated on
the back of an invigorated market due to the 2010 passage of a health care reform bill
covering preventive services. Sales in North America account for the largest percent-
age—more than 35%—of Olympus’s Medical Systems Business.
Aiming to gain further profitability, Olympus is addressing such issues as cost
structure reform. As part of such efforts, the Company follows a global policy of
assigning appropriate human resources to invigorate business operations and made
a drastic change in its North America management lineup in April 2011. In particular,
two executives who achieved noteworthy business improvement through substantial
selling, general and administration (SG&A) expenditure reduction in Europe were newly
appointed as the president of the Medical Systems Group in the Americas and as the
executive vice president of medical production in the Americas. Olympus has begun cut-
ting costs at manufacturing bases elsewhere while increasing sales. Looking forward,
Olympus anticipates reforms, including the integration of manufacturing bases in North
America and Europe, will also facilitate the early development of great synergy effects
from the acquisition of Gyrus.
> REINVIGORATING IN THE NORTH AMERICAN MARKET
May 2010 launch, business in the Asia/ Oceania region has
been required to grow over 25% annually. To facilitate such
growth, Olympus has placed the highest priority on building
up the Group’s marketing base in China while conducting
training activities to increase the number of endoscopic
surgeons and developing mid-priced model endoscopes for
China and other emerging countries. The Chinese govern-
ment invested approximately ¥12 trillion between 2009
and 2011 in the development of medical infrastructure and
promoted healthcare legislation reforms. However, the rise
in the number of endoscopic surgeons has not keep pace
with the growing number of patients; thus, the nurturing
of endoscopic surgeons has become a pressing issue.
Addressing the issue, Olympus established endoscope training centers in Shanghai in
2008 and Beijing in 2010, thereby providing doctors with various training opportunities,
including instruction in the use of gastrointestinal endoscopes for inspection; the opera-
tion of surgical and endotherapy devices; and the performance of the leading-edge LESS
surgical technique. Through contact with users, that is, doctors, Olympus will create the
foundations for the further spread of endoscopes in the future. Currently, Olympus has
31 medical sales and service bases in China, and boasts an overwhelming presence in
marketing as well as the provision of services and support for training activities.
Similarly, in India demand for endoscopes is expected to grow sharply, reflecting a
growing population and economic development. Given this, the Company established
Olympus Medical Systems India Private Limited in April 2010. In addition to pursuing
marketing activities with an eye to medium- to long-term market growth, Olympus is
consolidating a foundation to expand endoscope-related businesses by establishing
endoscope training centers at several hospitals in India as well as systems offering
high-quality services.
Medical Systems Business Growth Rate in Asia/Oceania
(%)
07 08 09 10 11
20
30
10