Canon Inc., headquartered in Tokyo, Japan, is considered a leading innovator and supplier of imaging and information technology, both for consumers and businesses. Since its foundation in 1937, Canon has been applying the expertise in digital and image processing technology for new products and activities. Canon also strengthens the development functions to set up organizational structures that stimulate and cultivate growth, while the whole world becomes acquainted with its quality products. In manufacturing and business operations around the world, Canon is paying attention to the environment by promoting environmental technologies and improving recycling systems. Canon products are sold all over the world through direct sales and resellers.
Canon is active in Japan, North and South America and Europe, with a total of 195 consolidated subsidiaries. The company has more than 180,000 employees worldwide. Mr. Fujio Mitarai, President, and Chief Executive Officer. Canon Inc. was originally founded in 1937 as Precision Optical Industry, Co.
, Ltd. The shares of Canon were listed for the first time in 1949 on the Tokyo Stock Exchange. Canon Revenue, Profits – CAJ annual year Jan – Dec 2017 is US dollars 36.98B.
Political Analysis Canon Depreciation of currency in Asian countriesGovernment policies differ from country to country in e-commerce. EconomicA decrease in growth in ChinaRecession Social-cultural analysis – Every year more and more pictures are taken, but fewer and fewer cameras are bought.- Businesses and individuals print less than before.- Cloud services and online storage now allow access to the document without having to print it to keep it- Good practices such as avoiding printing emails or others are installed and reduce the number of pages to print- Employees must be able to easily print their documents from their mobile devices and applications- 38% of employees print all their e-mails and 25% of documentsPrints are discarded within 5 minutes- The follow-up and the control of the prints make it possible to sensitize the collaborators to the good practices.- Canon delivers products; services and solutions that help businesses stay competitive, and improve the lives and health of customers and communitiesTECHNOLOGICALEconomic upheavals and the digital revolution in progress- 3D printing development- Development of digital photography- Cloud development- Increase the performance quality of the smartphone camera LEGISLATION- Law on Copying and Data Protection- Regulation on inks used in printers, Image rights, and data protection- Regulation on counterfeiting, Regulation of e-commerce worldwide- The regulation of e-commerce is reinforced over the years. United Nations, and applies its 10 universal principles in the areas of human rights, labor, the environment and the fight against corruption. The internal evaluation service of theConformity of understanding and consequences legislation and affecting the activity before implementation.
– Canon is able to plan actions required for regulatory compliance.- The ethical and responsible organization reassures the customers and makes it possible to sell products in conformity with the standards in force and the regulations relative to the security.- Canon complies with the laws and regulations of all countries in which it operates- Canon is part of associations and organizations interested in different aspects of environmental regulation and product safety.- Canon seeks to anticipate the evolution of laws and actively seek to participate in their development Strength in the SWOT Analysis of CanonStrong Product Portfolio: Canon has different consumer offerings based on a difference in the consumer segments. The product portfolio is diverse and includes; office MFDs, laser printers, laser MFPs, digital production printers etc. The diversity in the portfolio allows the company to target specific segments and reduces the risk of overdependence on single segments.
Strong and diversified manufacturing operations: Canon has been focusing on in-house manufacturing facilities in its various markets around the globe. Besides Japan, Canon has manufacturing facilities in 18 different countries. This allows them to improve quality and reduce costs.
This also allows them efficiency in operations.Strong R&D: Canon is continuous looking for innovation and evolution, which is supported by its strong R&D facilities which allow it to develop disruptive products in all its segments and categories.Strong presence in media: in a photography magazine, an article in the sector, blogs etc. history of effective marketing campaigns and superior performance which has created a strong brand image for the company. This has also helped Canon in garnering a loyal base of customers.Free publicity: Famous photographers using canon, free brand publicityHigh brand valuation: Canon is valued at $40 billion it’s top 500 most valued brands in the world. Weakness in the SWOT Analysis of CanonDependence on HP: HP is one of the biggest clients of Canon’s laser printers, generating about 18 percent of consolidated sales of Canon.
Although this is a major strength of canon, the phrase “your best friend is your worst enemy” comes to mind. Termination of this contract can affect the bottom-line of Canon.Defects in products affect image: Canon, which is known for superior performance has also faced controversies in terms of product defects.
For instance, Canon acknowledged defects in Rebel T6s and T6I DSLRs in 2015. This affects the brand image and trust in the company.Brand only recognized by Imaging Products: Canon has been popular worldwide for its imaging products like cameras etc. but its other products such as projectors are not so popular and hence there is a lack of recognition and awareness.
Opportunity in the SWOT Analysis of CanonGrowth in Universal Consumer Electronics market: The consumer electronics market is expected to grow at a CAGR of more than 2.5 percent during 2015-2020. This is primarily driven by emerging market and increase in household income levels.Market Growth in the Digital printing: the digital printing market was valued at $22.
18 billion in 2017 and is expected to reach $28.85 billion by 2023, at a CAGR of 4.48% between 2017 and 2023. According to the new market research from MarketsandMarkets.
This growth can be an opportunity for canon in the future.Market Growth medical devices: There is a continuous growth in the medical device business in the world and this helps the company’s strategy to grow in the medical device industry. This will help the company to expand its product portfolio and market share The threat in the SWOT Analysis of CanonShrinking Camera Industry: The Camera Industry is shrinking due to the evolution of the mobile phoneStringent Regulations in the medical devices industry: The medical devices industry is susceptible to stringent and different regulations in different countries. This increases the compliance costs and affects profitability.Fast changes in Technology: Canon has to keep investing technology changes The company has to maintain its speed. This requires a huge investment in R;D and increases costs for Canon.
RECOMMENDATION for CanonCanon should focus more on value for money products by including more advanced features, as the competitors have already adopted this method. Invest in higher quality images. This is to counter the problem of the ‘good enough’ mentality of the marketplace, exceeded their expectations with regard to quality and value for money.
Moreover, Canon must continue to maintain market share by continuing to innovate their products and developing the more revolutionary technology. An example of this would be, to create cameras and camera parts that are eco-friendly and uses less harmful chemicals. The above recommendations should help Canon stay abreast with future developments, and allow Canon Inc. to strengthen its current status as the market leader. This can also help Canon prevent any possibilities of a future downturn