Product Portfolio Management
Evaluation of Introduced Products (Medical Device Business)
In order to realize the optimal allocation of management resources, a product portfolio framework consisting of two axes, product growth potential and return on capital, is defined. The growth potential and earning power (free cash flow generation) of each introduced product is comprehensively evaluated, taking into account the social responsibility of the medical business, and management decisions such as growth acceleration and identification of non-focused products are made appropriately and promptly.
The product group that plays a central role in our company. Since they are driving growth and earning power, this is an area where we will continue to invest to maintain growth and further increase earning power.
Regrowth Building Areas
Mainly mature product groups. This is an area where stable earnings are maintained, although significant growth is not expected, so the company will maintain stable earning power thorough cost reductions and other measures.
Mainly newly introduced product lines. This is an area where earning power is still low, but growth potential is high in the early stages of sales, so the earning power will be increased through measures and investments.
Low-growth and low-profit product groups. While change is required, it is also necessary to assess whether or not to withdraw from the market (Discontinue sales).