Yamaha 2008 Annual Report Download - page 33

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31Annual Report 2008
Conference microphone speaker
PJP-25UR
HiFi Audio System
As for conferencing systems, despite the fact that the Com-
pany’s Web conferencing microphone speakers have been well
received by the market, sales remained sluggish, mainly due to
the delay in development of sales channels.
Market Trends and Business Strategy
AV Equipment
Business conditions for AV receivers—for which it seems the
market has bottomed out, especially in North America—are still
uncertain, since competitors have taken the lead in product inno-
vation. Another ongoing issue is the sales impact on DVD prod-
ucts as the market’s focus shifts toward Blu-ray Disc players.
Yamaha plans to expand sales for AV receivers by reinforcing
product competitiveness to enhance the product lineup. Where its
front surround systems are concerned, the Company is working
to enhance its market presence by supplying a diversified product
range in addition to its current Digital Sound Projector.
For HiFi components, Yamaha is expanding its lineup of
speakers in the SoavoTM series, and is launching new medium-
and high-end amplifiers and CD players in an effort to boost
market share. The Company also plans to enter the mainstream
consumer product market by launching micro-component stereo
systems in Japan and other markets. Meanwhile, in desktop
audio systems—a new area for Yamaha—the market is growing
globally, and the Company will aim to enter new product domains
such as iPod dock speakers and desktop clock radios.
In addition to developing and introducing new products that
meet specific market needs, the Company is seeking to expand
sales in countries with rapidly growing economies, such as
Russia and China.
Moreover, from April 2008 onward, Yamaha plans to consoli-
date its AV equipment sales subsidiaries with musical instrument
sales subsidiaries to form one sales company per country for
these products in Germany, France and the U.K. By consolidat-
ing these sales functions, the Company aims to maximize the
synergy between AV equipment and musical instruments as well
as simultaneously improve management efficiency through the
consolidation of logistic functions.
Commercial Online Karaoke Equipment
With the market for karaoke equipment in the midst of an
extended contraction, sales are unlikely to grow substantially.
Going forward, Yamaha will focus on development activities
targeting high-definition image and networking capabilities for a
new generation of products.
Routers
The Japanese market for routers used in small businesses and
homes is shrinking, and there is no indication that this business will
generate significant sales growth in the near term. Nevertheless,
Yamaha’s routers have constantly earned a strong reputation for
quality in the small office/home office (SOHO) market. Going for-
ward, the Company plans to consolidate its sales channels in order
to improve efficiency and enhance its marketing capabilities, and
develop new products that are tailored to better meet customer
needs. In addition, the Company aims to develop new applications
for its router technology, including products for next-generation
telecommunications networks. Through these efforts, Yamaha is
striving to attract new customers and develop new market niches.
Conferencing Systems
Conferencing systems is a business that promises to generate
substantial sales as the market for audio and video conferencing
systems grows. Demand for business-related conferencing
between Japan and China in particular will drive such growth,
while the trend is likely to accelerate as China upgrades its tele-
coms infrastructure, creating a large and potentially lucrative
market. Yamaha is focusing on products that leverage its network
technologies in audio and routers, as well as products that
address diverse user needs by being compact, lightweight and
easy to carry. Plans call for steadily building a global network of
sales channels for conferencing systems, incorporating the Com-
pany’s existing sales subsidiaries and licensed sales distributors.
Although the market for conferencing system products still
faces constraints due to the fact that telecommunications proto-
cols and technology standards vary widely from country to country,
there is nevertheless a vast potential for growth in markets world-
wide. Yamaha will work to develop its operations in this sector by
focusing on the high sound quality for which it is renowned.
Yamaha’s medium-term management plan targets call for
sales in the AV/IT segment to reach ¥88.0 billion, and operating
income to total ¥4.5 billion, in fiscal 2010.