Canon Xerox Marketing Strategy 1970s

1473 Words6 Pages
Marketing Case Study Reoport - Canon

The report analyses the success factors of Canon's business during their globalization in 1960s and 1970s, then next discusses the recommendation for Xerox to combat Canon. The report consists of the following sections.

• Background of the Company – history / products
• Canon Strategy
• Strengths of Canon
• Weaknesses of Canon
• Introduction to Xerox
• Xerox Strategy
• Recommendations for Xerox

Background of the Company
Canon started its business as a camera company in 1933 and began exporting the products after World War II. Since 1950s, Canon globalised its business. It established a N.Y. branch in 1955, an agent in Switzerland in 1955, built a camera assembly in Taiwan in 1971. Also, the
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This revenue stream complemented the direct sales activities of Canon across the globe and proved to be a major strength in comparison to its competitors.

Global Manufacturing  Reduced Cost
Canon reduced the cost significantly by manufacturing globally. This enabled them to make use of local labour, avoid import duties and cut down the time to market the product in a foreign geography.

Reasonably Balanced Portfolio
Canon has a reasonably balanced portfolio i.e. a major chunk of the revenue generated is distributed amongst its 3 out of 4 product lines. Thus, any risk arising out of failure of new products in a particular product line is considerably mitigated.

Weaknesses of Canon:

Risk associated to being an innovator.
The target market of innovative products is aimed at those "early adopters", who are interested in trying new technology and are usually the opinion leaders. Although Canon can enjoy higher return before too many other manufacturers entered the market, the innovative products, however, involve the greatest cost and uncertainty because these are new to both the company and the marketplace. For example, in early 1980s Canon was developing "laser beam printer" technology, which was new to the market with unknown market size and customer needs . If Canon's new products failed to meet the need of market, they are putting themselves at risk. As an innovator, Canon was forced

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