Brother reveals new medium-term business strategy
March 1, 2019
Brother Industries, Ltd. has formulated the Brother Group’s new medium-term business strategy, CS B2021 for the period from FY2019 to FY2021.
The Group has set out the following three objectives in its medium to long-term business plan:
- To become a leading global company with high profitability
- To become a world-class manufacturer by developing outstanding proprietary technologies
- To embody Brother’s motto “At your side.” throughout its corporate culture
As roadmaps to achieve this GV21, the Brother Group says it formulates medium-term business strategies. In 2016, the group started a 3-year medium-term business strategy, CS B2018, and executed three transformations: business, operational and talent transformations, with a goal to transform the group to a multi-business enterprise from the printing-centric business structure. As a result, the Brother Group reveals that it has achieved significant profitability enhancement in the printing area and sales growth in the industrial area.
However, the business environment surrounding the Brother Group will change significantly and become increasingly severe, the company declares. In the printing area, in addition to the printing volume decrease under further digitalisation, service needs diversification will keep accelerating amid drastic customers’ behaviour changes from ownership to usage. In the industrial area, growing demand for labour-saving, automation, traceability, and customisation are observed.
With these understandings, the Brother Group expresses its belief that it is essential to implement more in-depth transformation to achieve GV21, and thus, has formulated the medium-term business strategy as announced today.
Under the new CS B2021, strategy with a new theme of “TOWARDS THE NEXT LEVEL”, the Brother Group says it will implement transformation by focusing on the critical few, the four management top priorities below, and strive to build a firm foothold for future growth.
- In the Printing area, maintain business scale and enhance profitability to win a leading place by acquiring high-PV users and improving hardware profitability through an accelerated shift to new business models that enable Brother to establish a closer relationships with customers.
- In the Machinery and Factory Automation (FA) area, actualise substantial growth in the Industrial Equipment area by focusing on automobile and general machine market, while expanding FA business across Machinery organisation by capturing a growing need for labour-saving and automation.
- In the Industrial Printing area, re-accelerate the growth of the Domino business by reinforcing the synergy effects between Brother and Domino in new product development as well as grow business by leveraging Brother’s inkjet-centred printing technologies
- Establish a firm foundation to gain speed and cost competitiveness by group-wide thorough operational transformation with IT, talent cultivation, and optimal talent deployment so that Brother can achieve a sustainable growth even in a severe business environment.
The company has set financial targets for FY2021 of ¥750 billion ($6.7 billion/€5.8 billion) revenue and ¥75 billion ($670.6 million/€589.3 million) operating profit.
Categories : City News
