Pioneer 2010 Annual Report Download - page 10

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Launching Competitive Products in the
Largest Volume Zone in the Market
In the consumer-market business, Pioneer will work to
expand sales by launching competitive products in the mar-
ket’s largest volume zone through rigorous cost reductions,
in addition to providing high-value-added products, where
Pioneer excels. In car navigation systems, we aim to increase
sales by developing products targeting the replacement
demand that will be generated by the termination of analog
broadcasting in Japan in 2011, while both in Japan and over-
seas strengthening our product capabilities and product
lineup, including PNDs (portable navigation devices).
Further Business Expansion in China
In 2009, Pioneer commenced a joint venture with Shanghai
Automotive Industry Corporation (Group), China’s largest
automaker, in a country that has become the world’s largest
automobile market. The alliance was formed in recognition of
Pioneer’s 20 years of business experience in Shanghai,
China. In Shanghai, Pioneer has already put in place all of the
functions that are needed to develop business in China,
where the OEM market is a core market. By expanding the
joint venture, Pioneer will work to achieve growth in the Car
Electronics business in China.
The development of transport infrastructure is an urgent
priority for China, where motorization is proceeding apace.
Through the joint venture with Shanghai Automotive Industry,
Pioneer plans to take part in the launch of a telematics busi-
ness starting this summer. By establishing an Intelligent
Transport System (ITS) tailored to local road and traffic
conditions, Pioneer aims to maintain a strong position in the
Chinese market and achieve further business expansion.
In its core Car Electronics business, Pioneer is
targeting net sales of ¥354 billion and operating
income of ¥20 billion in fiscal 2013. As a leading
company in car electronics business, Pioneer is
first and foremost working to expand its lineup
of products for the market’s largest volume zone,
while rolling out new products that fit the
regional characteristics of each fast-growing,
newly emerging markets, and establishing new
business models that leverage Pioneer’s strengths.
Through these measures, Pioneer is working to
actively develop the Car Electronics business.
0
100
200
400
300
2010 (results)
249.3
‒7.3
2011
14.0
277.0
2012
18.5
330.0
2013
20.0
354.0
–10
0
10
20
40
30
Market’s volume zone
New position
High-end price
High-end function
Current position:
Value-added strategy
Conceptual Map of Volume-zone Strategy
Car Electronics Growth Strategy
Medium-term Plan Targets
(Billions of yen)
PIONEER CORPORATION Annual Report 2010
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Net sales (left scale)
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Operating income (loss) (right scale)
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