CyberAgent creates numerous new businesses in relation to changes in the business environment, utilizing a “self-reliant growth” management strategy to achieve continual business expansion that is not contingent on large-scale M&A. The structures supporting this growth are our unique CAJJ Program, and the Startup JJJ program to cultivate new businesses. Under these programs, CyberAgent ranks subsidiaries and businesses, creating an environment in which they develop through friendly competition. The CAJJ Program has three performance-based ranks centered mainly on operating income, while Startup JJJ has four ranks for businesses based on assumed aggregate market value. Businesses move up and down the rankings according to specific standards within a certain period, and if they fail to meet the established standards they are moved down the rankings, discontinued, or the general manager replaced. The establishment of clear criteria avoids inflating losses from unprofitable businesses due to tenacity, while at the same time encouraging a challenging spirit for the creation of new business, and raising the profitability of the CyberAgent Group overall.
CAJJ Program Ranks
J2 Quarterly operating income of ¥100 million or more
J3 Surplus Operating Profit
Criteria for withdraw: Revenue and earnings decline for two consecutive quarters
In Startup JJJ, businesses are ranked by market value and efforts are directed towards achieving growth. Under clearly established criteria for withdrawal, a business is discontinued if it exhibits no growth for six consecutive quarters or is unable to demonstrate competitive advantage. In October 2018, we also established a Group Management Planning Office to support business expansion via business tie-ups and stimulate swift and consistent business growth.