Imaging is everything to Konica Minolta Holdings. Through its subsidiaries and affiliates, the company offers an array of imaging-based products and services. It develops, manufactures, and sells multifunctional peripherals (MFPs) and printers for corporate offices; production print systems for commercial printing houses and graphic arts; medical diagnostic imaging systems for the health care market; measuring instruments for industrial applications; display materials that go into LCD TVs, PC monitors, and mobile phones; and optical products like lens units. Services such as optimized print, IT, and equipment maintenance are intended to help Konica Minolta clients further streamline their work environments.
Konica Minolta Holdings group companies operate worldwide in Asia/Pacific, Europe, the Middle East, North America, and South America. The company's revenue is well dispersed throughout its major markets, with Asia/Pacific (especially Japan) and Europe leading the way.
Konica Minolta Holdings announced in October 2012 a plan to merge its seven wholly owned subsidiaries with the company in a reorganization of its management system. The reorganization is intended to improve business process and administrative efficiency. As a result, Konica Minolta Holdings will take a new trade name, Konica Minolta, Inc., and will become an operating company instead of a holding company.
Sales and Marketing
Konica Minolta's global sales and service network targets its products and services according to the particular office needs of different countries and regions.
In fiscal 2012 Konica Minolta Holdings saw overall sales drop 1% to $9.5 billion for the year. This is a vast improvement over double-digit decreases in sales in 2009 and 2010, and even 2011, when sales were 3% lower. Profits, on the other hand, fell by nearly 19%. The company's purchasing and production operations were affected by both the early 2011 earthquake in Japan and by widespread flooding in Thailand late in the year. In its two largest geographic segments, Konica Minolta faced difficult economic conditions, from the rapidly strengthening currency in its home country of Japan to a sovereign debt crisis across much of Europe. The company gets 28% of sales from each of the regions.
Konica Minolta's strategy essentially is to expand the scale of its business in certain growth markets. Its priorities include maintaining a top market position by launching new series and models of color multifunctional peripherals (MFPs) and production print systems; strengthening its optimized print services sales (OPS involves enhancing corporate printing environments for clients via centralized network-based management); and accelerating business development in emerging markets, especially in Asian markets.
Konica Minolta Holdings launched two high-end bizhub MFP models in 2012. It also entered into multiyear contracts for the OPS management of office equipment with 15 clients, including BMW and NASA. Additionally in 2012 it expanded its network of IT services in the US and Europe by acquiring 10 IT service providers in the regions. Konica Minolta's IT services tackle the digital networking needs of health care organizations and other verticals.
In terms of accelerating business development in emerging markets, Konica Minolta established regional head offices in Singapore and the United Arab Emirates in 2012, an office in Thailand, and sales subsidiaries in Vietnam and Turkey to better serve high-growth Southeast Asian and Middle Eastern markets. In 2011 Konica Minolta established new production sites in China and India.
Mergers and Acquisitions
To help boost sales in the production print market, Konica Minolta Holdings is busy scooping up Kinko's operations in various Asian markets from FedEx. In 2012 it agreed to acquire FedEx Kinko's Japan, a leading on-demand print services provider in Japan, and in 2013 it agreed to acquire FedEx Kinko's Korea, the largest copy and print services provider in Korea.
Konica Minolta Holdings formed from the merger of Japan's Konica Corp. and Minolta in 2003.