Epson anchors global growth strategy on ‘3i’ business solutions

SUZHOU, China – Printing and imaging firm Seiko Epson Corp. will anchor its global growth strategy in the next three years on its growing "3i" business solutions, top company officials said.

In a meeting with journalists from the Asia-Pacific region, Epson executives said the company is targeting ¥1.7 trillion in sales and a profit ratio of nine percent by 2007.

The key to this growth, the Epson officials said, involves focusing resources in the near term on the "3i" business (imaging on paper, imaging on screen, and imaging on glass or printers, projectors and displays), strengthening the company’s financial structure, and putting emphasis to research and development and new technology.

Epson executive vice-president Toshio Kimura said in SE07, the company’s medium to long-term corporate vision, Epson outlines how it will achieve the concept of digital image innovation, and identifies the three imaging domains that will drive the company’s growth until 2007.

By targeting the convergence of the 3is, Kimura said the company will be able to provide cutting-edge imaging solutions supporting more technologically-advanced communications.

Two developments illustrate Epson’s strategy, Kimura pointed out. One is the prototype of the world’s largest OLED (organic light-emitting diode) display that was created using Epson’s unique inkjet technology and unveiled last May 18.

OLED’s high contrast, wide viewing angle, and fast response time have led many to believe that it will be the TV technology for the future.

Epson is seeing a large potential for OLED technology, that could replace LCD (liquid crystal device) and plasma technology in 40-50 inch television displays, with a potential market by 2006 of $28.8 billion.

Right now, OLED is seeing limited application in cellphones, monitors, and MP3 players. "Every LCD maker is doing research on OLED but we believe that the use of our own Micro Piezo inkjet technology is our strong advantage over the other. We hope to come up with a commercial model by 2007, or a year before the Beijing Olympics," Epson officials said.

Another breakthrough is the Epson Livingstation, the first LCD projection TV in the world to include a built-in printer, launched earlier in the year in the US and Japan. The product enables users to enjoy both still and TV images in their living rooms at highly affordable prices.

Epson said the market for large displays is also changing rapidly, as consumers switch from rigid CRT-type (cathode ray tube) TVs to flat-panel TVs.

Epson managing director Masao Akahane explained that Epson is already looking beyond flat-panel TVs by leveraging its core technologies to explore the possibilities of flexible displays, including that of e-paper.

In addition, Epson’s high-performance Si-TFTs, flexible electronics technology, the micro liquid process, ultra-low cost digital memory and radio frequency technology for interfaces all have high potential for use in the displays of the future, he said.

Meanwhile, Seiichi Hirano, director and chief executive of Epson’s imaging and information products operations division, pointed out that the company likewise plans to take advantage of the booming market for digital cameras.

Hirano said Epson aims to create printing products that move away from the traditional dependence on personal computers or PCs. Non-PC solutions like the Epson PictureMaster personal photo lab have increased usability and are opening up printing to a whole new class of users.

During the forum, Akahane also discussed the different applications for Epson’s Micro Piezo inkjet technology other than just for printers. Unlike competitive inkjet systems that use heat, the Micro Piezo system fires its ink by applying a current to a piezo element which oscillates precisely according to the strength of the current. And since it does not use heat, more substances can be fired such as the organic substances used to create OLED displays.

Projectors are one of the three key imaging domains identified by Epson in its SE07 business vision. Its proprietary 3LCD technology has become the dominant technology for printers, employed in about 80 percent of projectors in the world today.

Kenji Uchida, director and chief executive of the visual instruments operations division, noted that 3LCD has several advantages, including the fact that it does not produce the rainbow effect or color breakup.

Meanwhile, as of last year, Epson had a world inkjet printer market share of 22 percent, and in the US and Europe, 12.6 percent and 24.7 percent, respectively, with competitor Hewlett-Packard still the leader. In the Asia-Pacific region and Japan, Epson has a market share of 29 percent and a commanding 53 percent, respectively, as of 2003.

However, company officials are confident that they could get a 40 percent share of the market in areas other than Japan. In the US, they hope to get at least 20 percent share of the market.