Canon Case Reporty

756 Words4 Pages
Corporate and Business Strategy (E) Canon Case Report 1. Is Canon an Excellent Company? Can you quantify? From a quantitative aspect, Canon is a very excellent company in terms of sales figure and level of diversification compared with other companies in similar or alike industry. With consolidated sales at 2.8 trillion yen, Canon enjoyed a dominating position as an electronic products maker. In terms of diversification, Canon had also done an impressive job by making sales percentage of camera less than 10%, which is far less than its competitors. Such success of diversification made Canon impressive presence in various growth areas, while also retaining its original business, camera business, strong market share. 2. Why did Canon succeed better in diversification relative to other Japanese camera manufactures? Canon’s success in diversification is due to a combination of reasons of proprietary technology, trading and channeling access, and targeted strategy to ensure a sustainable diversification path. The point of difference of Canon’s diversification is that it is a strategic differentiation with smart product portfolio management. Actually the technology development is far more difficult than simply mentioning the notion. So Canon chose to first enter the market from the low end and gradually move upwards by improving product performance and related technology. Another well-done job is that instead of focusing on original optical technology and precision manufacturing technology like other camera manufacturers, Canon developed technology in other apparently remote but strategically closely-related areas. 3. Is Canon’s diversification pattern natural? How would you explain it? As mentioned above, Canon’s diversification was carried out in a much strategic way. Instead of focusing on original optical technology and precision manufacturing technology
Open Document