Public Storage 2001 Annual Report Download - page 5

in major metropolitan markets that typically provide less storage
space than single-family detached homes. We can fulfill this
group’s demand with products and services ideally suited to
their lifestyles. By identifying demographic trends and segment-
ing our marketing, we learn what our customers want. This
process calls for ongoing measurement of what customers
want by interacting with them constantly at our properties,
through our website and via our national reservation center.
Our capacity to coordinate our marketing and management
activities to provide for one-stop shopping is also vital to
our customers, and we believe that our ability to execute our
strategies efficiently will propel our enterprise forward.
We hope you are pleased by our progress.
Sincerely,
B. Wayne Hughes
Chairman of the Board and
Chief Executive Officer
Harvey Lenkin
President
March 31, 2002
P
UBLIC S TORAGE ,I NC . 2001 A NNUAL R EPORT
3
As a customer-responsive enterprise, our operating effi-
ciency is augmented by economies of scale, capable manage-
ment and a portfolio characterized by stable cash flows.
Organizing our properties within geographic markets permits
cost-effective allocation of marketing expenditures and man-
agement supervision. An example of leveraging our operations
strategy is the WebChamp (Web-based Computer Help and
Management Program) system, a major upgrade to our com-
prehensive computerized property management system. The
WebChamp software, computers and peripherals are expected
to enhance customer perception of our marketing and man-
agement abilities, increase reservation agent productivity and
lower operating costs.
A significant advantage of the WebChamp information
system is that agents in our national reservation center will
now have real time information about unit availability at a
reduced operating cost. WebChamp enables reservation agents
to facilitate the interaction between storage customers and
resources by capturing to and retrieving information from the
centralized database seamlessly, as WebChamp puts all of our
properties on an Internet infrastructure that utilizes a satellite-
based communication network.
Sophisticated technologies like WebChamp present new
management opportunities and challenges. To get strong
results, these enhancements must be implemented with fore-
sight and careful planning. Similarly, competitive and market
adaptability involve recognizing market trends and responding
to them accurately as well as quickly. Flexibility is a key opera-
tional requirement for our customer-responsive enterprise to
be adaptable to competition and market trends. Every real
estate-based company faces competition. Overbuilding looms
as the Achilles’ heel to our industry’s growth, although cur-
rently we believe we can compete effectively by offering a mix
of products and services designed to satisfy the needs of the
storage and moving services customer.
We believe the aging of America, the collapsing birthrate
and increasing mobility and personal affluence are converging
to create demand for our products and services. Empty nesters
between the ages of 45 to 54 demonstrate heightened mobility,
a high rate of homeownership, active lifestyles and tend to be
consumption oriented. They often downsize to smaller, easier-
to-maintain but high-quality condominiums or second homes
A key component of the WebChamp information system is
rooftop satellite dishes.
High-tech
innovation