Pioneer's Global Strategy [Pioneer is a CUBE partner]..............
newsalert.com
Pioneer Electronic Corporation Announces Global Change Initiative
NOTE TO MEDIA: Photo available on BW PhotoWire/AP PhotoExpress, PressLink and on Business Wire's Web site at
www.businesswire.com
NEW YORK--(BUSINESS WIRE)--Aug. 25, 1998--Pioneer Electronic Corporation (NYSE: PIO), a leader in electronics
for the consumer and business markets, has announced its "Vision 2005."
Targeting aggressive sales growth, streamlined worldwide operations, enhanced customer service, and continued innovation in
leading-edge convergence products, Pioneer aims to double overall revenues by 2005.
At its press conference here today, Pioneer outlined its roadmap to the future and unveiled a bold new corporate logo,
reflecting Pioneer's new attitude and aggressive market outlook. The company also announced a global image advertising
campaign to communicate its commitment to the change.
As part of its commitment to Pioneer's vision for 2005 and beyond, the company identified four business objectives to harness
its heritage of superior optical and display technology:
-- Establish global leadership in DVD
-- Achieve a successful business in next-generation display systems
-- Secure a leadership role in Digital Home Networks [With Cube/Divi partners]
-- Continue strategic development of key technologies and components
The trend towards digital convergence is creating new market niches and new products, and Pioneer has responded by
forming four distinct operating units:
Display Products Company (DPC) Home Entertainment Company (HEC) Mobile Entertainment Company (MEC) Business
Systems Company (BSC)
With this restructuring, Pioneer has created more flexible entities that can be more responsive to rapidly changing market and
customer needs, while maintaining focus on increased customer satisfaction, developing technology leadership and forging
strategic alliances.
"In the face of quickly changing market dynamics brought on by digital convergence, Pioneer needs to adapt, to reinvent itself
from the inside out," explained Kaneo Ito, president of Pioneer Electronic Corporation. "Our family of companies will look to
work together as well, fostering synergy among our various operating groups including music, manufacturing and replications,
to collaborate in new and strategic ways. We will continue to leverage our equity in innovation to create altogether new and
exciting consumer and commercial entertainment solutions."
Pioneer's Convergence Technologies
Display. Pioneer's newly formed Display Products Company (DPC) will launch the world's only true XGA-quality plasma
monitor in September. The company plans to introduce its first HDTV-ready rear-projection television later this year,
providing consumers with the option to convert to a digital broadcast system. Pioneer continues to expand development of
organic EL display technology and forecasts growing global markets both for consumer products and commercial applications.
Optical. DVD technology is an outstanding example of Pioneer's cutting-edge optical disc technology. As an extension of
Pioneer's success in Laserdisc technology, the company plans to establish itself as a leader in developing and producing DVD
applications. Holding worldwide patents in DVD, Pioneer expects to grow the opportunity with a variety of product types
including DVD-Video, DVD-ROM, DVD-Recordable and soon-to-be-released DVD-Audio.
Digital Home Network. Pioneer's Vision 2005 also directs the company to develop new products in the burgeoning arena of
Digital Home Network, combining entertainment and information. Pioneer's North American companies span such a wide
variety of technical expertise that Pioneer is able to produce every necessary component of a Digital Home Network, from
display devices and set-top box to the software needed to run them. This growing market will eventually lead to a truly
networked environment where the entertainment and information options available in the home will be linked to the car, thus
creating a comprehensive entertainment system.
Pioneer Electronic Corporation is credited with many industry "firsts," including LaserDisc technology applications for
commercial and home use; car electronics' detachable face; introduction of CD-R to commercial and industrial customers and
the first manufacturer to bring DVD to market. Through Vision 2005, Pioneer will more widely distribute its proprietary
technologies. This objective is evidenced by the recently announced relationship to supply more than 1,000,000 set top boxes
to Time Warner Cable. [SAY WHAT???]
New Attitude/New Look
As a visual commitment to Vision 2005, Pioneer today introduced a new logo, which will be fully incorporated throughout the
organization by September 2000. The new red logo is an emblem for the worldwide image campaign. Pioneer is one of the
most dynamic companies in the optical disc, display and cable industries, and an established leader in home and car audio. In
addition, Pioneer is a leader in advanced technologies, including laser discs, compact discs, a whole range of DVD products,
organic EL displays, car navigation and crystal clear plasma monitors. The company's renewed focus on innovation will allow
it to capitalize on these strengths and create new lifestyle technologies to deliver to consumers the benefits of digital
convergence.
Boilerplate
Pioneer Electronic Corporation is a leader in consumer electronics and commercial video products, recognized around the
world for its position at the forefront of optical disc technology, car electronics and consumer entertainment. With more than
20,000 employees and over $4.2 billion in yearly sales worldwide, Pioneer operates facilities in Japan, Europe, Southeast
Asia, the United States, Canada and Mexico. Pioneer Electronic Corporation is led by Mr. Kaneo Ito, President.
CONTACT: Pioneer North America Group
Joni Saphir, 310/952-2507
e-mail: jsaphir@pioneer-usa.com
or
Wilson McHenry Company
Annie Longsworth, 650/638-3400
e-mail: alongsworth@wmc.com
or
Joanne Trout, 212/527-0800
e-mail: trousertrout@wmc.com
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