Document Sample
004 Powered By Docstoc
					Minolta’s Color Strategy
    Minolta’s Color Strategy                                                      It is thus the ideal toner from the
    Guided by its corporate slogan—“The essentials of imaging”—the Minolta        perspectives of image quality,
    Group is committed to becoming an “essential” company in the world            cost, and the environment.
    of image information. To this end, we have positioned image information
    products as the Group’s core business, and are concentrating our
    technological, knowledge, and other managerial resources on digital
    imaging. The market for color output has immense potential. Here, we
    will seek to build a leading position in areas where we can best manifest
    our competitive strengths, and we will expand sales by differentiating our          Polymerized toner particles
    color laser printers and color MFPs from others in the market. In addition,
    we will reinforce our strengths in the solutions business to secure a solid         Image quality comparison

    position in digital color solutions.

    Our Strengths in                        we have pursued a strategy of
    Color Output Devices                    acquisitions and alliances with         Pulverized toner   Polymerized toner
    Within the market for office            other companies while enhancing
    document output devices, we             our competitive image processing         Exploiting our various
    believe there is considerable           and optical technologies.             strengths, we have positioned
    latent demand for color output.             For the color laser printer       the DiALTA Color series of digital
    The key to successfully penetrat-       business, we acquired QMS, Inc.,      color MFPs and the magicolor
    ing the office market with color        now called the Minolta-QMS            series of color laser printers as
    machines is to provide low cost         Group, for its worldwide sales        strategic brands. We will continue
    and high speed on a par with            network and particular marketing      to strengthen our lineup and
    monochrome machines while               strengths in Europe and North         expand sales accordingly.
    maintaining top-quality color           America, as well as for its unique       To promote the use of color
    images.                                 network controller technologies.      machines in office environments
8      Minolta was one of the pioneers          In addition, we formed a joint    and help people to create more
    of color copiers. Our DiALTA            venture with Fujitsu Limited. The     powerful color documents, we
    Color CF2001 has achieved               new company is called F&M             have introduced the “Minolta
    remarkable success because of           Imaging Technology Co., Ltd.,         Colour Web YOUR COLOURS”
    its high-speed output of quality        through which we have obtained        website, which explains how to
    images. This machine incorpo-           cost-effective engine technologies    better understand colors and
    rates our innovative tandem             for our tandem system so we can       apply them to enhance business
    print engine, which accelerates         provide fast, cost-competitive        prospects.
    copying speed by applying all           laser printers.
    four colors in one pass. In con-            To improve image quality,
    trast, conventional four-cycle          we joined forces with Konica
    systems apply colors on separate        Corporation to establish a joint
    passes, so printing takes around        venture, Konica Minolta Supplies
    four times longer.                      Manufacturing Co., Ltd., That
                                            company has started production
                                            of polymerized toner, which
                                            is regarded as a revolutionary
                                            breakthrough in toner technology.     Minolta’s “YOUR COLOURS” website
                                            Compared with pulverized type,
                                            polymerized toner has finer and
                                            more uniform particles, helping       Exploiting the Potentially
                                            raise the quality of output images.   High-Growth Color Market
    Structual diagram of tandem printing
    system                                  This toner also contributes to save   Drawing on our competitive
                                            power during printing because         strengths, we are pursuing higher
       To ensure a solid position and       it fixes at low temperatures.         sales and expanding market
    further expand our share in color       Moreover, its manufacturing           share by strategically introducing
    MFPs and color laser printers,          process is highly energy-efficient.   low-cost, compact color laser
printers, mainly for business use,     Minolta’s Shares of Color Laser Printer Markets
as well as color MFPs, which           A4/Letter Desktop Color Laser Printer
provide more powerful network-         Western Europe

ing solutions. Due to the strong                       2000                                       2001
                                               152,870 units                              173,246 units
informational and visual appeal of
color, latent demand is high for
color printers and copiers. As a
result, color is steadily expanding                                                Minolta-QMS                                   Minolta-QMS
                                                                                   14%                                           19%
its presence in the office domain.
   In fiscal 2001, the global
market for printers, including
                                       United States
monochrome models, was
                                                       2000                                       2001
around 12 million units, of which              165,294 units                              178,562 units
color printers accounted for
around 700 thousand units. In
fiscal 2002, demand for color
printers forecast to expand                                                         Minolta-QMS                                  Minolta-QMS
                                                                                    4%                                           11%
around 40%, while the entire           Sources:
                                       Segment share data derived by Minolta from the IDC Printer Tracker Q4 2001
printer market will only grow 3%.      Minolta-QMS data is from Minolta Co., Ltd.
In addition, more high-speed,
                                       Minolta’s Shares of European Color Copier Market
low-operating-cost color copiers
                                       Placement Estimates in 2001
will enter the market to meet
                                           For all segments                          For segment 13-29
demand for replacement with                                                           pages per minute
monochrome copiers, supporting                  42,961 units                                 9,813 units

our view that proliferation of color
machines in offices will accelerate.
   In terms of size, the U.S. market                                                                                                            9
                                                                                   Minolta                                            Minolta
                                                                                   12%                                                33%
for color printers is estimated 70%
                                       Source: infoSource-Spring 2002
larger than that of Japan’s. The
European market is 50% larger.         Minolta’s Worldwide Sales and Market Share
In the A4-/letter-sized desktop        Color Laser Printer                                    Color MFP
color laser printer category,          Thousand Units                Share (%)                Thousand Units              Share (%)

Minolta gained a market share            400                                40                    40                             40

of 19% in Western Europe and
                                         300                                30                    30                             30
11% in the U. S. in fiscal 2001.
   In the color copier category,
                                         200                                20                    20                             20
the overseas markets are still in
the development stage. However,          100                                10                    10                             10
the latent demand for color
copiers in those markets is high.          0    01      02     03T    04T   0                      0   01    02     03T    04T   0

The current total copier markets          Unit Sales                                             Unit Sales
                                          Market Share               T=Target                    Market Share
including monochrome models
in the U.S. and Europe are 2.1
times and 1.8 times respectively
larger than that of Japan’s. In the    the U.S. and European markets,                         are seeking to obtain a leading
growing overseas color copier          where latent demand is particu-                        position in our specialized
markets, we hold 12% share in          larly strong.                                          genres. In particular, we aim to
Europe, with particular strength          At Minolta, we target domains                       raise our share of the global color
in the segment for 13 to 29 pages      where we can best demonstrate                          laser printer market from 14% in
per minute, where we boasted           our unique core competencies.                          fiscal 2001 to 30% in fiscal 2003.
top share, at 33%.                     Through a focused strategy of                          In the color MFP sector, we are
   Clearly, our strength lies in       introducing powerfully appealing                       targeting a 20% share, compared
our ability to seize solid shares in   products in those domains, we                          with the current 10%.

Shared By: