Strategy – New-business
The Year We Embark on a Journey to Develop New Business for Future Generations
Yoshimasa Kasuya
Director
In charge of Business Development
General Manager of Business Development Office
Realizing Change Through New Business Creation
Thus far, our business has centered on the provision of Marketing Solutions Business to commerce companies, and on EC Solutions Business provided primarily to LY Corporation. In addition, through collaboration with Dynatech Inc., we have offered various solutions for accommodation facility operators.
Our existing business operations, which revolve around Affiliate Marketing, have reached a stage of maturity, and we have also been affected by external factors such as the decline of the advertising market as a whole. The result of these is reduced rates of growth. In response to such challenging operating-environment factors, we have been focusing our efforts anew on the development of new business.
In 2024, we created the Business Development Office which specializes in new business development operations. Through this office as well as aggressive investment activities, we expect to see tangible results a few years down the road in our efforts to establish a new business pillar for ValueCommerce.
Starting with Innovation in Existing Business Fields
As part of new business development efforts, we are first focusing in on the development of solutions in existing business fields and the Travel Tech Business.
With Marketing Solutions Business in particular, we have been shifting from Web searches to social media, transitioning toward the newer platform of social commerce. And, of course, when one changes platforms, the solutions provided must change as well, which is why we are pursuing major investments in the development of such new solutions and other relevant areas.
The Travel Tech Business is in the midst of a major recovery from the massive tourism industry dip brought about by the COVID-19 pandemic. In the coming years, we expect this field to exhibit not flat, steady progress, but strong upward growth and change as it experiences major transformations. Some examples of our solutions in this regard, which address labor shortages and digital transformation (DX) needs in the accommodation industry, include the “Direct In” accommodation reservation system and the “Dynalution” property management system (PMS) for accommodation facilities. Countless accommodation facilities face difficulty in these areas, which is why we expect great results from expansion efforts in not only the domestic market, but in overseas markets as well, aimed at providing solutions to societal problems which are in extremely high demand.
Strengthening Organizational Frameworks Through Capital and Business Tie-Ups
When pursuing collaborative efforts with other organizations, the Business Development Office places particularly high priority on capital and business tie-ups, including M&A. Regarding research and development, which is the foundation of new business development, strong collaborations with corporations that possess the relevant field knowledge and resources are vital. We do not try to innovate new things from the ground up; rather, we work in cooperation with those who are already pursuing innovation on their own in order to realize faster results.
The Business Development Office’s mission is to locate companies with whom we can pursue collaborations, and then fortify our cooperative ties with them. The Office functions as a contact point for support activities in the company’s three core business field, and also for capital and business tie-up efforts, while also promoting new business development.
Currently, our only group company is Dynatech, but through said tie-ups we hope to bring greater numbers of strong players into our overall organization. Fostering a unified ValueCommerce Group in this way will serve as a catalyst for major leaps forward in new business development.
Although meaningful progress in new business is not something that can be achieved overnight, we are positioning 2024 as the year in which we transition from being a marketing-only ValueCommerce to a ValueCommerce that is not limited to marketing alone. In other words, we stand ready to embark on this new journey.
By leveraging the technological and skill foundations we have cultivated through our three core business fields, utilizing the experience gained through said fields in an organically interlinked manner, and incorporating cutting-edge technologies such as AI into our endeavors, we expect great success in next-generation business creation achieved through mid- and long-term investments.