Public Storage 1999 Annual Report Download - page 5

U B LI C T O RAG E,N C . 1999 N N UAL RE P O RT
3
tial percentage of the self-storage space in higher-rent
facilities in major cities in 37 states, a market penetration
none of our competitors rival.We are focused on creating
customer-centered growth through insight into customer
needs, employees, information flow and analysis, corpo-
rate culture, organizational structure, cross-functional
training and superb customer service.We realize that our
key strengths of Focus, Innovation and Flexibility must
begin and end at the same place — with a deepening
understanding of our customers’needs and spending
preferences.
Cr eat ing The Fut ur e
The aging of America, the collapsing birthrate and
increasing mobility are some of the major social and
economic trends transforming our nation.We are aware
that these trends will, in combination with the event-
driven nature of the self-storage business, determine
the storage solutions our customers need. Successful
companies such as Public Storage will increasingly be
pressured to respond to these trends.We anticipate, for
example, our subsidiary’s portable self-storage operations
may benefit as an aging population seeks the convenience
and timesaving associated with portable self-storage.
That is just one example of proactively planning to meet
the opportunities the trends may yield.We plan to find
innovative ways to convert other demographic changes
into rising financial performance. These emerging reali-
ties will introduce challenges and opportunities for our
storage operations and for the various businesses our
subsidiaries operate.
Consolidation, competition and market saturation
are continuing concerns. Fluctuating supply and demand
could generate imbalances that would impact our self-
storage occupancy levels and rental rates in affected
markets. Our leadership in the 21st century will rest on
being able to profit from our history of operational suc-
cess and the demographic changes gaining momentum
in American society today.
As the self-storage industry becomes better known
and more consumers use our products and services, we
are utilizing marketing programs such as strategic alliances
with organizations possessing broad market penetration.
Strategic alliances allow your Company to form
effective partnerships that reduce marketing costs.
We recognize that the new currency of business is
information and the capacity to analyze it effectively.
New technology will help the national reservation
center in California and the newly operational center
in Texas to collectively process approximately 500,000
phone calls a month during the peak demand periods,
spring and summer. We are enhancing our website to
increase customer interactivity, leveraging on a commu-
nications medium that may eventually become the
world’s most significant. Consumers can reserve storage
space online, rent trucks and purchase retail goods at
www.publicstorage.com.
The most important commodity we are competing
for is consumers’ time. In our fast-paced society, Ameri-
cans crave solutions and hate hassles.We are focusing
more clearly on our customers’individual problems and
responding with an array of viable storage solutions.
We are drawing on sophisticated management tools such
as customer knowledge and continuous innovation to
learn as much as possible about who our customers
are, what they want, when they want it and how they
reach decisions on spending their disposable income. In
an industry where the only constant may be change,
preparation is mandatory.We have a vision to increase
competitive advantage by being customer driven and
we have the key strengths to make our vision happen.
We are responding to change by placing greater weight
on Focus, Innovation and Flexibility, our key strengths
to satisfy customer needs. The future is not only here,
it is malleable.We are prepared for 21st century leader-
ship. To our customers, shareholders and employees,
thanks for supporting our vision.
Sincerely,
B.Wayne Hughes Harvey Lenkin
Chairman of the Board and President
Chief Executive Officer
March 31, 2000
Planning + Execution = 1,330 Success Stories
Points of Differentiation