Mahesh Ashok Abnave BEIT 500862 Batch III ECOM Exp III

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Revenue Model Case Study: Epson

Epson Revenue Model

Epson earns its revenues from various product lines. Some of these are explained below: (1) Information-related equipment business segment This segment comprises the printer business, the visual instruments business and others. This segment mainly includes the development, manufacture and sales of printers, 3LCD projectors, and personal computers (PCs). Details of the main businesses are as follows. Printer business Based on its digital control technologies and digital color image processing technologies, the printer business is responsible for the development, manufacture and sales of products that offer total solutions of color digital data from input through to output. The main products in this business include inkjet printers, page printers, serial impact dot matrix (SIDM) printers, large-format inkjet printers and related consumables, color image scanners, mini-printers, point-of-sale (POS) system products and others. Visual instruments business The visual instruments business is responsible for the development, manufacture and sales of 3LCD projectors, label writers and others. The manufacture of high-temperature polysilicon (HTPS) TFT liquid crystal panels (HTPS-TFT panels), which are the key components in 3LCD projectors, is included in the display business. Others In the PC business, PCs for the Japanese market are sold through a domestic subsidiary.

Fig. Information-related equipment business segment

(2) Electronic devices business segment This segment comprises the quartz device business, the semiconductor business and the display business. This segment mainly includes the development, manufacture and sales of crystal oscillators, CMOS LSIs and HTPS-TFT panels for 3LCD projectors. Based on their ultra-fine and ultra-precision processing technologies, low-power consumption technologies and high-density mounting technologies, businesses in this segment offer a wide range of electronic devices that are compact, thin, and which save energy. Products are aimed at handled device and various other applications. Products are also developed and manufactured to respond to the needs of other businesses within the Group. Details of the main businesses are as follows. Quartz device business The quartz device business is responsible for the development, manufacture and sales of crystal units, crystal oscillators, quartz sensors and optical devices for industrial and consumer products in a wide range of markets. Semiconductor business The semiconductor business is responsible for the development, manufacture and sales of mainly CMOS LSIs with low drive voltage, low power consumption and high durability mainly for handheld devices and other information communications equipment, and PC peripherals. It also develops semiconductors and base technologies for other Group businesses. Display business The display business is responsible for the development, manufacture and sales of HTPS-TFT panels for 3LCD projectors, and others. Epson Imaging Devices Corporation, a consolidated subsidiary of the Company, transferred part of its business assets related to the small- to medium-sized TFT-LCD

business to the Sony Group as of April 1, 2010, thereby ceasing the related production as of December 31, 2010.

Fig. Electronic devices business segment (3) Precision products business segment This segment comprises the watch business, the optical products business, and the factory automation products business. This segment mainly includes the development, manufacture and sales of watches, watch movements, plastic corrective lenses, horizontally articulated robots and others. Based on their ultra-fine and ultra-precision processing technologies that originated in mechanical watches, and high-density mounting technologies, this segment is the birthplace of Epsons micromechatronics technologies. Details of the main businesses are as follows. Watch business The watch business is responsible for the development, manufacture and sales of Seiko brand watches and watch movements. Optical products business The optical products business is responsible for the development, manufacture and sales of Seiko brand plastic corrective lenses. Factory automation products business The factory automation products business is responsible for the development, manufacture and sales of horizontally articulated robots and semiconductor testing equipment known as IC handlers, and industrial inkjet equipment.

Fig. Precision products business segment

(4) Other business segment This segment comprises the businesses of subsidiaries that offer services for and within the Epson Group. Details of the main businesses are as follows. Intra-Group service business The intra-Group service business comprises subsidiaries providing a wide range of services for Epson. In particular, this includes Epson Insurance Center, which provides insurance services, and others.

Epson Online Revenue Epson earns revenue from both ways brick and mortar shops and online stores. It allows broad categories of products to be sold through the online store. It offers printers, scanners, projectors online. Epson ship to US street addresses only. It do not ship to P.O. boxes, APO, FPO, or non-USA addresses including Canada and U.S. territories or provinces.