CANON

Business Environment and Strategic Challenges of Canon



Business Environment and Strategic Challenges of Canon

Introduction

Seldom does it happen that a single product dominates the market, and it enjoys the monopoly. Specially, a product whose customer base is huge and industry is lucrative. In this paper, the product that is under discussion belongs to a technology oriented industry. It is highly imperative that the players in this industry keep up with the latest technology, as lagging behind can be detrimental in the long term (Brewster, 2003, pp 228). Canon is a Japanese based company; however, it has been growing successfully globally for almost a century now. According to the case, Canon owns 70 per cent of the world laser beam printer engine market, 40 per cent of the world bubble jet printer market, second only to Hewlett-Packard.

Overall, it has a strong global base in its major product areas: photocopiers, computer peripherals, computer and Fax equipment, cameras, video recorders and optical products (Waterman, 2002, pp 56). Thanks to its long term relationship, innovative ideas, product differentiation and cooperative behaviours entered into with it suppliers and customers. Its position in the industry sector was greatly enhanced by the company's ability to identify the photocopier's market as an area of growth that created its competitive position in the sixties with strategic planning and actions channelled through this direction. This vision was marked by its intentions to catch Xerox through technological differentiation

Discussion

Industry and Product Description

Canon predominantly operates in a technology oriented industry. The product portfolio Canon is quite broad, as it caters to and operates in different sub-industries under the broad category of technology. The broad product portfolio of Canon encompasses film cameras, digital imaging equipment, and others, ophthalmic lenses and sports optics. Stepper and scanners; measuring and inspection instruments, micro scope and various surveying instruments and much more. However, the most prominent products of Canon are digital cameras, lenses for digital and LSR cameras, camcorders, printers, photo printers, projectors, scanners and broadcast equipment. One main product, which is renowned in the consumer market and some industries, is the digital camera's product line (DSLR). Canon covers huge global market in DSLR (Busch, 2009, pp 31).

Targeted Market Segment

A person who is connected to technology and various consumer electronics tend to go for the DSLR cameras of Canon for photographic purposes. These consumers are extremely well-informed regarding the products they tend to purchased. Mainly they conduct an extensive product research via various means before making a sizeable purchase. The main chunk of its DSLR consumer market belongs to upper-middle class, well educated and technological astute. Mostly it is the photographic professionals who make the vast majority of purchases of the Canon SLR cameras and hence, fall in the category of primary consumers/target market; as they require high quality images for a professional environment. This may include both men and women aging from 28 years to 50 plus and usually have a good annul income (Trout, 2000, pp ...