Case Study: Canon - Competing on Capabilities Introduction In 1925, a German camera maker named Oskar Barnack, developed a new, ground-breaking camera called the Leica. It was not until 1933 that a company responded to the success of Barnack’s creation and produced their own 35 millimeter version of his innovative design. Thus was born the Canon Company. By the 1950’s, Canon attained the title of leading producer of cameras in Japan. Since that time, Canon has made it a point to expand and diversify their company as much as possible. They are able to accomplish this primarily through a strong Research and Development program. Through this program, Canon has explored many different technologies such as home electronics and x-ray …show more content…
The concept itself had the potential to change the market by decentralizing the office photocopier. Prior to this innovation, the photocopier in large offices were centralized to one corner of the office, primarily due to its mammoth size. In 1979, Canon’s concept became a resounding reality. They were able to produce a photocopier that not only met and exceeded the cost and reliability targets that were set by Top Management, but in a more practical application, it was able to reduce the need for constant and continual copier maintenance. Based upon previous experience with patent law, Canon employed the use those laws to protect their new found development. 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
Hyper Competitors especially those that more diverse in technology. Very competitive and people want the best and newest technology
It was Kodak’s’ strategy to sell the cameras at low prices, and it used to earn revenue from the films; this strategy is called the razor-blade strategy. This model for photography became flop when Sony introduced a camera with floppy disk inside, in which there wasn’t any use of films. As a result of Sony’s introduction of the Mavica in 1981, Kodak took it as a threat and started investing in the digital photography. For this purpose, it has conducted a huge research on the digital photography. As exposed by Fisher in 1997, Kodak’s respond wasn’t appropriate for the digital world: “One of the mistakes we [Kodak] have made is that we [Kodak]’ve tried to do it all. We [Kodak] do not have to pursue all aspects of the digital opportunity and service side.”
We aimed to win market share by appealing to cost-conscious or price-sensitive customers, which we felt that the majority of consumers consisted of. This would be achieved by having the lowest prices in the target market segment, or at least the lowest price to value ratio (price compared to what customers receive). To succeed at offering the lowest price while still achieving profitability and a high return on investment, it was evident that we had to be able to operate at a lower cost than our rivals. We aimed to achieve this goal though a combination of two methods, the first being achieving a high asset turnover. In the manufacturing of our cameras, we wanted to achieve the production of high volumes of output. In theory this approach meant fixed costs would be spread over a larger number of units of the product or service, resulting in a lower unit cost. We hoped to take advantage of economies of scale and experience curve effects[3]. We hoped and realised that higher levels of output both required and resulted in a higher market share, and created an entry barrier to potential competitors, who may be unable to achieve the scale necessary to match our low costs and prices.
The History of Fujifilm - Part 2. (n.d.). The History of Fujifilm. Retrieved November 6, 2013, from http://www.photographytalk.com/photography-articles/1686-photography-tipthe-history-of-fujifilm-part-2
(Bellis, 2009) Nevertheless, the main selling point of digital cameras was the convenient way that they could be stored. Every exposure is almost instantly saved to a removable disk drive, which remarkably expired the use of darkroom processing. It was convenient, less time was needed to produce an image, making it particularly appealing to journalism. The photograph has since then become an instant process. Combined with the invention of the Internet, and booming industry of personal computers, the newer technology would expire its predecessor. There are billions of photographs on the Internet, comprising the largest most diverse photo collection ever assembled. We have access to imagery from all over the world, using key words and hash tags to catalogue imagery and content; we can see what is happening without being there. The introduction of digital photography has enabled photographers to record terabits of imagery which can be stored in minute places, meaning the coverage that we have of the modern world is greater than ever. Unlike the formats that Henri Cartier-Bresson used, where each roll of film, or negative slide needed storing in a large physical place, under controlled conditions, an archive of objects. Automation came with digital photography, its combination of digital components allowed the camera to automatically detect light qualities, and
While the original Daguerreotype started a massive surge on photography, two later inventions turned photography social phenomenon that became ingrained in our lives today. The first of these inventions is called the “calotype” process. invented in 1839 by William Henry Fox Talbot this method of photography involved exposing chemically treated paper, producing a “negative” that could be redeveloped. This allow for multiple copies of the same image to be printed, and is the predecessor to modern film photography. The next major breakthrough in the art of photography was the portable camera. Before its inception, most photos were taken using a large, cumbersome device that worked as a camera and darkroom for developing glass plates coated with a sticky collodion solution. (film photography was
In 2002, Leitax had suffered through poor planning of 3 camera models: the launch of one camera delayed (cost: $19.5 million), another outsold its inventory (costs: $4.5million) and a third model reported sluggish sales ($2.5million). To compensate, Leitax extended the life of an existing model and made a mad scramble to find product and customers but the most costumers preferred to wait for the delayed camera. These
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).
Barnes & Noble, Inc. operates as a content, commerce, and technology company in the United States. It provides access to books, magazines, newspapers, and other content through its multi-channel distribution platform. The company sells its products directly to customers through its bookstores and on barnesandnoble.com. Barnes & Noble conducts its online business through Barnes & Noble.com, one of the Web’s largest e-commerce sites, which also features more than 3 million titles in its eBookstore. Through Barnes & Noble’s NOOK eReading product offering, customers can buy and read eBooks on the widest range of platforms, including NOOK eBook
While Eastman Kodak has remained an industry leader in the sales of film for photo-imaging, over the past five years Kodak has underestimated the demand for digital cameras. Digital cameras require no film whatsoever and with Kodak’s main line of production being film Kodak has suffered great losses in net profit. Just in 2004 Camera film sales have been falling even than projected. The Photo Marketing Association predicted a six percent drop in film sales and Kodak projected an even more dismal 10-12 percent drop in film sales. The actual drop in sales reached an unforeseen 18%. In 2003 digital camera sales were greater than traditional film camera sales for the first time.
Improved technology and reduction in price made the digital camera industry grow rapidly and inject life into a very stagnant sector. Worldwide sales growth rate for the digital cameras had double digit growth for almost 15 years. However that growth was slowing and was starting to reverse from a strong 25% in 2005 to a weak 5.2% in 2006 and into negative territory 2007 and beyond. This growth masked the problems in Leitax's supply chain.
Canon is one of the leading companies in world with 2,204 patents in 2009 (Canon 2010). However is facing serious threats from Nikon and Kodak in US, Samsung and Sony in Europe and Nikon in Japan and Asia. Due to the continuous decline in operating profit and threat of losing more market share the Canon has decided to come up with the product, which could be foundation for its comeback to market to regain it position and market share.
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.
"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"
Protected by patents, the competition for the company in the field of instant photography was low. The attempts to diversify