The Victor Company of Japan, parent of JVC America, announced a new mid-term business plan, dubbed its "Leap Ahead 21 Plan," which is focused on growth in video display and optical disc areas to become an "entertainment solution company."
Central to the plan is a focus on the company's unique products, called "Only One" products, with the emphasis on the aforementioned video categories.
The company plans to double the size of its display business to $2.8 billion and optical disc business to $947 million in fiscal 2007, while continuing structural reforms, and winning global market share through combined development, manufacturing and sales efforts.
The display and optical disc product areas are expected to account for 60 percent of total company sales by fiscal 2007.
For the Americas, JVC said it would seek to strengthen retail partnerships with national accounts and expand its business with local mass-market outlets.
Meanwhile, the global display strategy will focus on developing the U.S. market for JVC's proprietary D-ILA rear-projection televisions, which will be introduced in the United States this summer, in addition to plasma and LCD televisions that take advantage of horizontal integration.
JVC will offer differentiated display products powered by its Digital Image Scaling Technology (DIST) and audio technology, the company said.
Plans for the optical disc business call for expanding sales of DVD recorders "and quickly commercializing Blu-ray disc products. The company will "aggressively expand into foreign markets with compounding, HD compatibility and in-house production of core components."
In addition, the company will look to expand its "high-profit camcorder and car A/V" businesses.
The Leap Ahead 21 Plan will guide JVC from fiscal year 2005 through 2007, with the company's fiscal period ending March 31, the company said.
"Over the three years of the JVC 'Value Creation 21' Plan that began in fiscal year 2002, we have achieved business rebuilding and reinforcement through corporate culture reforms, business structure reforms and product reforms," according to a company statement. "Based on those results, the Leap Ahead 21 Plan will accelerate the growth strategy with Only One products that capitalize on JVC's uniqueness, and will transform JVC into an entertainment solution company for the new era."
Ongoing structural reforms will focus on combining development, manufacturing and sales globally "to achieve high-speed turnover management that can promptly adapt to market needs."
In that effort, the company will reduce non-consolidated-level domestic employees 12 percent, to approximately 7,000, and will reduce global manufacturing sites from 28 to 23 or 24. JVC will accelerate the reconstruction of basic operations in its components and devices (C&D) business, including reorganizing personnel.
JVC's management targets for fiscal year 2007 call for consolidated net sales of $10.4 billion and an operating earnings rate of 5 percent.
Other goals under the plan include raising the research-and-development costs from $407 million in fiscal 2004 to $473 million in fiscal year 2007.