Below we report on medium-term management plan GD100 started in FY2006 and the growth strategy of each division to examine the type of value we will provide to society through our business activities in the run up to our centennial in FY2017. Pages 12 to 18 highlight our MB growth strategy and tire growth strategy seen through our products and the eyes of our employees.
- We will evoke a distinctive global identity in building corporate value and in building a strong market presence by FY2017.
- Long-term financial targets (FY2017)
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- Basic Policy
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- -Deliver the best products at competitive prices and on time.
- -Assert world-class strengths in technologies for protecting the environment.
- -Foster a customer-oriented corporate culture that honours rigorous standards of corporate ethics.
We expect to achieve \1 trillion in net sales sometime between FY2019 and FY2020 due to changes in operating environment. However, the target for operating income will be achieved as planned and we anticipate attaining operating margin of 10% ahead of schedule.
Basic Approach of Phase III
Given the basic approach of Phase III, we have created a specific strategy and initiatives for tires, MB, technology, operating base and CSR. Our growth strategy for tires and MB is presented below.
- Generate investment funds using a solid operating base and proactively invest these funds to increase primarily tire production on a large scale
- Capture rising demand in growth markets without delay by expanding supply capacity
- Aim to achieve an operating margin of 10% by improving cost competiveness and enhancing brand power
Tire Growth Strategy
- Establish a distinctive identify in global markets
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- Japan: Enhance competitiveness by improving technological prowess and product development capabilities
- Overseas: Expand supply capacity and achieve profitable growth
- Increase tire production capacity on a large scale
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- Increase capacity annually by approx. 7 million tires mainly in Russia, China, the Philippines and Thailand
- Carry out \140 billion in new investments to increase production aimed at Phase IV and beyond (expand production capacity by approx. 20 million tires per year)
- Roll out high value added products globally
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- Consumer goods: Accelerate worldwide rollout of flagship tire ADVAN, fuel efficiency-focused tire BluEarth, winter tire iceGUARD, SUV tire GEOLANDAR and carry out sales and marketing to increase their use on new luxury cars
- Production goods: Launch and increase production of large tires for construction vehicles (especially radial tires over 49 inches in wheel diameter)/increase the number of highly functional products, such as super low profile truck and bus tires, and increase rollout of retread tires
- New plants (candidates)
- Third plant in China, new plant in India, new plant in North America, new plant in Latin America
- Expansion of existing plants (candidates)
- Plant in the Philippines, plant in Thailand, plant in Vietnam, plant in Russia
MB Growth Strategy
- Aim to develop a new number one product from the 3 core technologies
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- Create a new number one product using the 3 core technologies of transport, adhesion, and cushioning
- Continue to expand overseas production sites and pursue structural reforms at domestic plants
- Generate and expand new business opportunities
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- Generate new business opportunities with new products and distinctive technologies that utilize advanced telecommunications and measurement technologies
