Pioneer 2010 Annual Report Download - page 9

Download and view the complete annual report

Please find page 9 of the 2010 Pioneer annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 56

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56

Establishing a New Business Model
Since becoming first in the world to bring car navigation sys-
tems to consumer markets, Pioneer has constantly been at
the forefront of the market. Pioneer now plans to develop a
new business model harnessing its competitive advantages in
information services as well. This new business model aims
to use smartphones, which are rapidly gaining ground around
the world, to provide car navigation applications comparable in
value with full-fledged car navigation systems with communi-
cations functions. Through this business model, we envision
expanding business in market segments that have not used
car navigation systems, such as compact cars. The smart-
phone market has a very large growth potential and offers
numerous possibilities for developing applications. Therefore,
by establishing a new business model where we provide car
navigation applications to smartphone users, we aim to main-
tain and continue expanding our solid position in the car navi-
gation market, including providing information services.
In addition, we are also taking a look at value propositions
and services for electric vehicles, which are currently attract-
ing attention as environmentally conscious, next-generation
vehicles. We intend to uncover potential markets and drive
their growth, by taking the lead in proposing the driving cul-
ture of the future.
Initiatives to Develop New Businesses into
a Third Core Business
In order to generate steady earnings into the future, Pioneer
must develop a third core business following the Car Elec-
tronics and Home Electronics businesses. In 1997, Pioneer
was first in the world to successfully develop an organic
light emitting diode (OLED) display business. Aiming to
further expand and strengthen its OLED business domains,
Pioneer has now formed a business and capital alliance with
Mitsubishi Chemical Corporation for the purpose of develop-
ing and commercializing OLED lighting applications, where
significant growth is expected. OLED lighting has consider-
able potential because it provides higher energy efficiency
than conventional lighting. We intend to develop the OLED
lighting business into an operation that can contribute to
future earnings. In other areas, our efforts will be focused on
slim speakers, and on research and development themes
that lead to the development of new businesses.
Outlook for Sales in Newly Emerging Markets
0
50
100
200
150
2010 2013
46.3
69.3
156.3
46.4
8.6 12.6
28.2
39.4
23.0
117.4
0
50
100
200
150
2010 2013
94.9
61.5
156.3
75.0
42.4
117.4
By Type of Business By Geographic Region
(Billions of yen) (Billions of yen)
Feature: Growth Strategy
PIONEER CORPORATION Annual Report 2010
■
Car Electronics consumer-market business
■
Car Electronics OEM business
■
Home AV business
■
Other businesses
■
China
■
Other than China
07