Yamaha 2008 Annual Report Download - page 41

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39Annual Report 2008
Market Trends and Business Strategy
Golf Products
Market conditions for fiscal 2009 are expected to be challenging
in the second half, as the replacement demand generated by
new product standards for golf clubs in Japan is likely to begin
tapering off. Yamaha is focusing its marketing efforts on wealthy
individuals in their 50s and 60s with a preference for top-quality
name brands; the Company has carefully surveyed and analyzed
this user segment and is using the data to support product
development and sales promotion efforts. Going forward,
Yamaha intends to expand its product lineup, focusing on high-
end products, to support growth in both the Japanese and
overseas markets. Japanese marketing efforts will focus on the
large-scale chains of golfing supply retailers that have estab-
lished nationwide networks of stores. Overseas, the Company
plans to enhance operations in South Korea, where sales of golf
products show steady growth, as well as in the burgeoning
Chinese market. Meanwhile, the Company will accelerate prod-
uct development efforts and reinforce R&D staff in an effort to
differentiate its products from those of competitors.
In April 2008, Yamaha Corporation and Yamaha Motor Co.,
Ltd. sponsored the “Yamaha Ladies Open Katsuragi” golf tourna-
ment. Leveraging this event, the Company aims to raise its profile
in the golf industry and demonstrate its proactive approach
toward the golf business, making this business a driver for devel-
opment of the Company’s operations going forward.
Automobile Interior Wood Components
Yamaha’s automobile interior wood components business will
continue to supply high-value-added wood fixtures for luxury cars.
At the same time, the company intends to maintain its edge in the
global competition between rival suppliers by enhancing its cost-
competitiveness through lead time reduction and production yield
improvement. Going forward, the company will also be striving to
elevate its brand image in interior wood components for luxury
cars, further stepping up its efforts with regard to overseas mar-
kets and actively proposing innovative designs to foreign auto-
makers based on the appeal of natural wood.
Metallic Molds and Components
In the metallic molds and components business, Yamaha is
responding to growth in the market for digital single-lens reflex
cameras by seizing opportunities for reliable earnings. To this
end, Yamaha is increasing its productivity for magnesium parts
and working to improve production yields. In addition, the com-
pany seeks to expand the business through cost reduction
efforts and developing mass production technology for compos-
ite materials. It also aims to respond to the further expansion
expected in the market for magnesium parts by investing ¥2.0
billion to establish production facilities for magnesium casings in
China during fiscal 2009.
Factory Automation (FA) Equipment
In the FA equipment business, Yamaha aims to increase sales of
precision machines for production equipment used in the IT
industry to make flexible printed circuit boards and leakage
inspection devices used by automakers to detect microscopic
leaks in auto parts.
Under Yamaha’s medium-term management plan, the
Company aims to increase sales in the others segment to
¥34.0 billion in fiscal 2010, with an operating income of ¥2.5 billion.
Gas leakage inspection device Automobile interior wood components