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
new competitors and they will tend to copy the ideas of products and try to dominate the
An analysis of Cabral’s Life and Death Among the Xerox People: Progression of Technology and Mechanized Life
Polaroid’s overall growth strategy was to be the number one and only instant photography company through the invention of it’s own technology in its own laboratories. “Growth objectives are a key part of an organization’s overall strategic plan. Almost all strategic plans deal with the size the company wishes to be in the future” (Human Resource Management pg. 110). One of the ways in which Polaroid planned to be the only instant photography company—in turn would also make it the greatest—was through 533 patents. “Polaroid is still characterized by many as a company that hold too tight a grip on its patents” (Human Resource Management pg. 130). Polaroid’s strategic plan was always to stick with their one invention, improve on it’s technology, and target the sole market. This affected HR planning and strategy because Edwin H. Land did not want to enter other markets; Land wanted Polaroid to be about instant photography. The decision to stay in only one market affected HR from doing what they are suppose to do. It prevented them from being creative or innovative.
The R & D facilities allowed them to continuously come up with new products in the market. In my opinion they are flooding the markets with many new products, in a way they are confusing an average golf player with too many different types of golf club.
Canon has provided a wide variety of products and services. For product example, they provide digital camera, film camera, camera accessories, camera lenses, external flash light, digital camcorder, CCTV, printer, multi-functional devices, scanner, projector, calculator etc. For service example, they provide different kinds of consumer services, business
1. Evaluate Kodak's strategy in traditional photography. Why has the company been so successful throughout the history of the industry?
The problem in this case is Kodak's steadily eroding market share and shareholder value in the film rolls market. This is especially undesirable given the fact that the market has been growing at a tepid 2% annual rate and the steadily increasing threat from competition. Kodak needs to come up with a strategy for corrective action so as to arrest this decline, regain market share and increase share holder value. Kodak's strategy is to reposition itself by targeting a new segment of price sensitive customers and re-segmenting the super premium customers’ space by including a wider segment of special occasion customers.
Fujifilm was able to being exporting film and optical products after World War II ended, they primarily focused on South American and Asia. There was a great demand
It is considered that photography only became widely available to the public when the Kodak Eastman Company introduced the box shaped Brownie Camera in 1900. (Baker, n.p.) Its features became more refined since its original placing on the market; one of the reasons why it has become considered the birth of public photography is because of the processing. Using a similar image capture system, the brownie exposed the light to a 120mm roll of film, which could be wound round, meaning six photographs could be taken before the slides needed removing. The first Brownie used a six-exposure cartridge that Kodak processed for the photographer. (Kodak.com, n.d.) Realistically, the armature photographers did not need to understand darkroom processes,
Kodak currently has no position within the ink market. The ink business is a $45 billion a year sector that could regenerate Kodak’s position in the printing sector. The market for ink is dominated by HP, followed by Epson, Canon, and Lexmark. Entering a complete new market may be beneficial in its current position. According to Kodak, the greatest obstacle to printing at home is the cost of ink and supplies. Kodak can develop a cost efficient solution that will be more appealing to consumers. With the launch of this product, Kodak must focus on several sectors of business: marketing, pricing, distribution, and production. Onesource (2011).
What I feel about Kodak’s move was that they are trying to make a space for themselves in an already crowded market. Kodak is trying to carve out a niche for them by offering inks for low prices. But, they have forgotten the abilities of the competitors. They have probably underestimated them. HP and Canon are big names in the printing industry and because of their continued rollout of good quality products; customers trust them more than they trust Kodak. It is also observed that Kodak had forgotten that if HP lowers their price to almost the same level like Kodak, Kodak won’t stand a chance. The only way that Kodak can hope to make some profit is by hoping that their competitors won’t reduce the price of the inks as it is the only source of revenue in the printing industry. But I am pretty sure that marketing research people of Kodak has made a blunder by opting for this. The major fact is that they have forgotten cartridge refilling industry which is cheap too and people have started to use that as they are comparatively cheaper to the original printing inks. I sincerely feel that Kodak has taken the wrong path to get out of their troubles.
While Kodak has historically been a well-established brand name in the marketplace, it struggled to find a niche when the industry morphed from a film-based market to a digital-based market. Kodak has struggled to successfully evolve its film-based business structure to the new structure of digital-based technology, which has allowed for competitors to enter the market, decreasing Kodak’s market share. Competitors (such as Canon Inc., Fuji Photo Film Co., Hewlett Packard Co., Nikon, and Sony Corp.) have posed major threats to Kodak’s livelihood. Kodak faces a 5% drop in film sales (2001-2003) and a 3% reduction in overall revenues over the same time period. In addition, revenues and net income are expected to be fairly flat (or decrease) in future estimates. Kodak faces much pressure to revitalize their business through digital imaging, a radical innovation, or risk being eaten alive in an industry they thought they controlled.
Major advantage with this option is the fact that Xerox operates in the market it fully knows, dominates and controls. As a market leader, having gained clear edge over main competitor IBM, Xerox can consolidate its position with the introduction of innovative new product "Book-In-Time solution" that could significantly reduce the publishing costs.
Through the years, Canon has demonstrated several core competencies that have enabled them to propel themselves to the top of the market. First and foremost, Canon has employed a pool of extremely talented engineers who made up Canon’s Research and Development team. Through their research, Canon was able to uncover new and innovative products. This varied product line, which included cameras, calculators, and photocopiers, demonstrates Canon’s diversified product line. This diverse line of merchandise is integral to the company’s survival and has enabled Canon to take a multifaceted approach to technological competition. The more diverse type of products that are offered, the more chances there are
"We at Canon view technology as the origin of our profit. Looking to Canon's development from 2010 through 2020, we are working to identify fields for further growth"