BY YUKINORI KUWANO
President and Chief Operating Officer,
Sanyo Electric Co. Ltd.,
Osaka, Japan

The 21st century will bring about a shift from an Era of Mega-Competition to an Era of Mega-Selection in which only companies at the top of their respective industries will survive. Two key sets of words representative of the 21st century will be "broadband" and "dog year". "Broadband" represents the new era of "borderless" industries in which the flow of information and business relationships exceed all previous notions of borders. "Dog year" (one human year equals seven dog years) symbolizes the speed that will be demanded to survive in the constantly changing business environment of the 21st century.

Thus in this downturn, we see aggressiveness not as the ultimate defense but as a tool for growth. Those companies that are not aggressive in aiming for top market share will be forced to the bottom of the pack and will not survive in the rapidly changing business world.

As a manufacturer of devices and finished products, we are aware of the importance of constantly improving our production capabilities, the lifeline of our business. I feel that in the long run, without a synergy of development, design, production and sales linked together as a chain, it will not be possible to adapt to changes. Of course, there will be cases in which we outsource production, but as a rule we will remain close to our roots as a manufacturer. With this in mind, Sanyo is establishing a flexible manufacturing system capable of adapting to the sudden changes in mass-production volume demands.

Our goal is to increase the number of business divisions in various markets and business segments with a top market share. That will require streamlined high profitability as well as frequent introduction of creative new products to market. Recent changes in Sanyo's corporate structure will allow for increased flexibility and timely introduction of competitive number one technologies and devices. The dawning of the era of mega-selection may be likened to being in the middle of a swiftly running river. It is critical to keep in mind the potential danger of being swept away by the current if we do not act accordingly to meet the needs of our customers and the consumer. We are always striving to "continue upstream" by putting our customers first, providing the consumer and our customers with the best products and system solutions.

Our strengths in the key areas of displays, rechargeable batteries, semiconductor devices and electronic components-all important in digital, mobile, Internet-enabled products and devices-have positioned Sanyo to play an even larger role in the 21st century.

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