Olympus secret 3 year plan to boost profits

Tsuyoshi Kikukawa, the preseidnt of the Olympus Corporation has drawn up a new three-year Corporate Strategic Plan from 2006 to Marchn 2009. The aim of then plan is to maximize corporate value through the recovery and enhancement of value creation capabilities. this includes net sale of 1.2 trillion yen and operating income of 100 billion yen which is 1.2 times and 1.5 times the respective figures for the term ended March 2006.

In the Imaging Systems Business centered on digital cameras, Olympus will build a sustainable earnings structure to create a framework for generating stable profits. It will also apply resources to creating new businesses with a view to nurturing related business in the medical and health sectors, and the imaging, information and communications sectors. To this end, it will make strategic investments while at the same time striving to strengthen its financial base by considering ways of reducing interest-bearing liabilities.

Here's what he says on the Imaging Systems Business plan.

"To create a structure that will yield profits on a continuous basis, Olympus will rigorously pursue a process of selectivity and focus, channeling its resources into digital SLR cameras, compact digital cameras, optical components and other businesses based on one of its key strengths, opto-digital technology. The company will engage in developing both product and business platforms. The development of product platforms in particular is designed to promote differentiation and enhance development and manufacturing efficiency, and quality levels."

After looking into the financial data, we can see that Olympus is slowly starting to turns things around. After a -8.6% net sales loss in 2005 to a net sales gain of 1.9% in 2006, thing are starting to look promising for Olympus.


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