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Create free accountFinancial reportNamco Bandai Holdings
Distilling the key insights…
The Namco Bandai Holdings Mid-term Business Plan for 2009–2011 outlines a strategic pivot toward global expansion and operational efficiency. Following the 2006–2008 period, which focused on organizational restructuring and establishing a management foundation, the company aims to transition into a globally recognized entertainment leader. The core thesis centers on shifting resources toward high-growth international markets, specifically the United States and Europe, while simultaneously optimizing domestic operations to improve profitability.
Key findings indicate that while the Japanese market remains a critical base, it is shrinking, necessitating a shift in focus toward the growing overseas entertainment sector. The plan prioritizes dynamic growth in the Toys and Hobby and Game Contents segments, where the company intends to leverage its intellectual property (IP) through worldwide, simultaneous releases and enhanced cross-border marketing. Conversely, the Visual and Music Content and Amusement Facility segments are designated for profit improvement, involving stricter cost controls, portfolio rationalization, and the potential withdrawal from underperforming regional markets.
The strategy relies on an "Entertainment-Hub" model, which seeks to maximize the value of IP through integrated media, merchandising, and game development. To support these objectives, the company is implementing new performance metrics, such as Return on Invested Capital (ROIC), and reinforcing corporate governance by increasing the number of outside directors. Financial projections for the 2009–2011 period are set against a backdrop of challenging economic conditions, with the company targeting long-term growth by 2015–2017, aiming for 100 billion yen in operating income and a 50% overseas sales ratio. The plan emphasizes that future success depends on the company’s ability to scale its operations to compete with global industry players through strategic M&A and the development of a worldwide studio system.
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