“InternatIonal Business Report “
Submitted to: Sir Shahzaib Khan
Submitted by: Syed Ahmed Arsalan (9227) Muhammad fahad (9260) Syed muzammil bin rashid () Syed ayaz (6763) Umar Jaleel (7660)
Table of Contents Introduction:.................................... (Syed Muhammad Muzammil bin rashid) 3 History of the Company: ..................................................................(umer jaleel) 4 Key Dates related to Canon: ...................................................................................6 Competitors of the Canon: ......................................................................................6 Causes of Expansion in United state ................................. (Muhammad Fahad) 7 To rise the company sales: ...................................................................................7 To reduce the competitive risk and diversify resources: ..................................7 Importance of international business: ................................................................8 Safety of intellectual property: ............................................................................8 Pattern of Expansion ......................................... (Syed Ahmed Arsalan Yousuf) 9 Passive to active: ...................................................................................................9 External to Internal Handling of Operations: ...................................................9 Deepening Mode of Commitment: ....................................................................10 Geographic Diversity:.........................................................................................10 Leapfrogging of Expansion:...............................................................................11 Canon business strategy: ................................................................. (Syed Ayaz) 12 Conclusion: .............................................................................................................12 References ...............................................................................................................14
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Introduction: Canon Inc. is the one of the biggest multinational Japanese based firm. Canon Inc. the multinational corporation are providing the specialized of imaging and optical products in which they are providing the vase range of digital cameras, video recorder, printers, scanners, photocopier, multifunction device and also the medical equipment. The headquarter of Canon Inc. is located at Tokyo (Japan). The Canon Inc. is also listed in the biggest companies of the world. According to Forbes list of Global 2000 of May (2017) canon ranked at No.266 in the list of the biggest companies of the world. In May 2017 canon has the Market Cap as of $41.6 Billion and the net sales of canon has $31.3 Billion. The numbers of employees that are working in canon worldwide are 197,673 and the numbers of companies that are subsidiaries and affiliated with canon are 256. Canon has captured the 31% of the market of compact camera according to the BCN award 2016. As canon doing their business in all over the world so they are generating more than of their revenue outside of their country which is about to 73%. The some of the major competitors of canon are Nikon, Konica Minolta, Leica, Pentax, Olympus, Sony, Epson, Kodak, Hewlett-Packard and Xerox. The manufacturing or production of canon is still in Japan but they are expanding their production unit business in United States, Malaysia, China, Vietnam, Germany, Thailand, Taiwan and France. Canon is using a different philosophy known as “kyosei” which means that they are living and working together for the sake of the common purpose. Be that as it may, the Canon belief system takes it to a certain extent further and changing its point of view into all individuals of all backgrounds, ethnicities, societies, religions, races, living and working gently and agreeably together into what's to come. Canon takes pride in its customs and activities of protecting and preserving the world that they share with every other person. Moreover, it is very difficult to implement the “kyosei” ideology because of the differences and problems of the trade, environment and many other ways that directly or indirectly affecting the ideology. Canon believe that if the companies want to operate on the worldwide they will not only make the good relationship with their customers but also make the good relationship with the other nations to Page | 3
make the better integrated environment in the world. Canon considers it as one of their missions and effectively seeks after it. Their ideology system compels them to hold up under any impacts that their operations and exercises may have on the general public. Although the main objective is to focus and take share on the community happiness, achievement and flourishing of the world which will prompt constant development while conveying the world nearer to the gaining kyosei. Canon key of success is research and innovation and the production of the advance products and for the sake of that purpose they are more focused on the Research and Development (R&D) network globally. In the way to achieve the vision of Kyosei canon uses the “san-ji” (Three Selfs) strategy. The corporate philosophy of canon (Kyosei) is first formulated by the former chairperson Ryuzaburo Kaku. These are the establishment of the organization's controlling standards; (ji-hatsu) self-inspiration importance stepping up and being proactive in all exercises, (ji-chi) self-administration significance overseeing capably and have responsibility for the activities and (ji-kaku) self-mindfulness significance understanding the circumstance and part to be played in that circumstance.
History of the Company: Canon Inc. was founded on 10th August 1937 before the World War II but the journey of canon Inc. was started in 1933 when the young genius Takeshi Mitarai started working with some technical expertise friends to form a camera. It all started when canon started with the manufacturing of Precision Optical Instruments Laboratory in 1933 it was just start establishment to produce quality camera. In 1934 they start producing prototype form in which they first introduced a 35 mm focal-plane-shutter camera and in early 1935 they took a step forward and file for the registration of the Canon trademark. In 1936 the Hansa Canon was first introduced with the 35 mm focal-plane-shutter camera. In 1937 the Precision Optical Industry, Co., Ltd. is founded and starts manufacturing quality cameras and other products. In 1939 and 1940 Canon has made the significant impact on the Japanese imaging and medical industry through the
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technology and introduced the first ever In-house production of Serenar Lens commences and developed the first indirect X-ray camera. In World War II the role of Japan is to support the entire economy of the Japan and also support the Japanese Military. Canon has faced the many problems and difficulties but they survived in the World War II but they are unable to manufacturing the products. When the war was over in 1945 there are some astounding efforts which were done by the Mitarai in the way to re-start the production lines. The main goal of Mitarai is to improve the quality of products that are being produced at that time and on the other hand Mitarai was took some steps and make the efforts in which the cameras of the Canon has went to shores of the United States of America with the United State servicemen. In that way they introduced their products on the land of America. In 1947, Canon Camera Company Inc. was come on the name of Precision Optical as a transliteration of the first product of the organization, Kwanon. The 1950s decade was the apparently the most critical decade for the company. The Korean War was covered by the photographers’ news and in that session that they was found that the Japanese lenses were similarly in the same class as the German ones. The export was started and the canon began to succeed. In 1955, it opened an office in New York and formally entered the United States showcase. Just two years after the fact, amid 1957, Canon Europa was framedin Geneva too. In 1959 and 1963, the canon grew three times its size! Canon vary the range of the product portfolio of the company by entering new products advertises like copy machines. They additionally first created the plain paper copier (PPC) and bring the product in the industry, replacing Xerox from their position of royalty. Along these lines, in 1969, Canon Camera Co.changed to Canon Inc. In the up and coming years and decades the canon went into other products range also like printers with the end goal of further enlarging the product offerings. It additionally extended to different locations and now canon was do their operation in all the continents with 197,673 workers over the world. It has turned into an outstanding brand all through the world for good quality imaging products and solutions.
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Key Dates related to Canon: 1933 Led by Takeshi Mitarai, Precision Optical Instruments Laboratory is founded. 1934 Mitarai and colleagues develop Japan's first 35-millimeter camera, the Kwanon. 1937 The venture is incorporated as Precision Optical Industry Company, Ltd. 1947 Firm is renamed Canon Camera Company, Inc. 1955 New York branch is established. 1957 Canon Europa is formed, based in Geneva. 1964 An electronic calculator is introduced, Canon's first venture into business machines. 1968 Canon introduces a plain-paper copier. 1969 Diversification drive prompts name change to simply Canon Inc. 1976 The revolutionary AE-1 35-millimeter camera is introduced. 1982 Canon's personal copier debuts. 1985 Canon begins producing laser printers for Hewlett-Packard Company. 1987 Canon launches its EOS autofocus SLR camera. 1995 Fujio Mitarai takes over leadership of Canon. 1999 The Image Runner line of high-end digital copiers is introduced. 2000 PowerShot Digital ELPH camera debuts. 2003 Canon launches the EOS Digital Rebel camera. 2006 Tsuneji Uchida succeeds Mitarai as Canon president
Competitors of the Canon: Xerox Corporation/Fuji Xerox Corporation; Hewlett-Packard Company; Lexmark International, Inc.; Ricoh Company, Ltd.; Seiko Epson Corporation; Toshiba Corporation; Sharp Corporation; Konica Minolta Holdings, Inc.; Sony Corporation; Fuji Photo Film Co., Ltd.; Olympus Corporation; Nikon Corporation; Casio Computer Co., Ltd.; Matsushita Electric Industrial Co., Ltd.; Eastman Kodak Company; Sigma Corporation; Pentax Corporation; Victor Company of Japan Ltd.; ASML Holding N.V.
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Causes of Expansion in United state The founder of the organization, Takeshi Mitarai understood the importance of international business that mentioned above. Therefore, moving in to the U.S. based market was a part of his plan and he know that the product of japan is not new for the USA market. His quick out of the box thinking allowed him to avail the chance of introducing his products to the American market through the returning American servicemen. There is some reason are mentioned below.
To rise the company sales: Japan was a country with the population of approximately 90,000 during the 1950s and the United States market was potentially a large market with a population of 166 million even. It was a great opportunity for the Canon to boost its revenues through big platform and a great increase in sales. Canon had already seen a tough economic time due to Japan being involved in World War II in the mid-1940s. Thus, Canon greatly needed a boost in the revenue stream.
To reduce the competitive risk and diversify resources: The other another purpose of Canon move to expand to markets abroad, including United States of America, had minimizing the competitive risk and also diversify the resources. Competing in a market of 90,000 people has a very high competitive risk as the struggle for keeping a high market share would have been very difficult, along with limiting the company in every way as well. Moreover, it was effective decision for the company so that they acquire new and diverse resources that allowed the company to have a greater innovation factor and the company may achieve the competitive edge and Canon may also produce in low cost through diversify resources.
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Importance of international business: In the eye of the founder of the Canon, Takeshi Mitarai international business take an important place for the innovation and rises sales. As mentioned above Canon wanted to expand to the global markets from beginning but during the war that was difficult to shift to other country. Furthermore, Mitarai moved its business operations to United States of America in the overall expansion strategy. Moreover, it is also a part of the vision of the company, the corporate philosophy of Canon, kyosei, to live and work together with people of all races, backgrounds, religions, cultures peacefully in order to achieve common good. After the USA the company moved on other countries like, Europe, Virginia, California, Vietnam etc.
Safety of intellectual property: As we know that USA is a state can provide a better intellectual property security as others country. So one of the reason to expand in USA. The canon is technology based company and its necessary to protect its formulas, innovation techniques and designed from the stolen and copied by other technological company. Canon Inc. has invested a great deal into research and development of new technologies and ideas over the decades. That’s why today Canon Inc. has the most number of patents of all the Japanese companies and ranks 3rd in the same category in the market of United States.
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Pattern of Expansion Passive to active: The company hardly survived World War II and the company was unable to manufacture its backbone product 35-millimeter cameras duration the war. Mitarai drilled into his workforces regarding to importance of producing high-quality products. Initially, Mitarai started to export their product in USA market. U.S. servicemen bringing their cameras home with them gave the company its first foothold in the U.S. market. The 1950s decade was possibly the most imperative decade for the canon. The news photographers covered Korean War during that they found that the Japanese lenses remained good as the German ones. The export market started to open up due to GATT and the globalization then and Canon grew all over the decade. In 1955, the company created a U.S. subsidiary, based in New York and they observed the demands and trends of the markets and competitors of USA. Only after two years later, for the duration of 1957, Canon Europa was formed in Geneva as well. The company grew 3 times its size during the period of 1959 and 1963 through diversifies the product portfolio of the company by entering new product markets. Canon added new product line is 8-millimeter movie camera, after that in 1959 canon become the only company in the world to manufacture 8-millimeter camera with the specification of zoom lens.
External to Internal Handling of Operations: In the year 1965 canon USA Inc. were recognized. Gradually, canon shifted its operations in to the USA soil as it saw a steep growth in the first two decades. The reason to shift their operation in the USA to grab the big market because at that time USA was very developed from japan and the population of USA in very much big than Japan. In 1956 Canon added an 8millimeter movie camera to its product lines, and in 1959 it became the first company in the world to manufacture an 8-millimeter camera with a built-in zoom lens. In the United States canon expanded its product line and market as well such as canon entering in the market of machines. Canon Entered in the photocopier market in 1965 with the Cano fax 1000, In 1968 Canon became an innovator in the field when it introduced its first plainpaper copier. But at that time Xerox was its strong competitor then canon changed their identity Page | 9
"Camera Company" and in 1969 the company became simply “Canon Inc.”. Hence, in 1965, Canon USA Inc. was established and did researched other products to add to the organization’s product portfolio and in 1974, Canon Business Machines was established in California. In 1985, Canon Virginia Inc. was also established which was capable of not only manufacturing but also recycling, engineering and technical support for the entire American region.
Deepening Mode of Commitment: In spite of the company's engineering successes, however, Canon was plagued by weaknesses in marketing strategy in the late 1960s and early 1970s. Although, it was a part of the huge overall penetration of the U.S. market by Japanese calculator makers. The company failed for the most part to distinguish itself from its competitors in the context of photocopier and calculator as well. In 1972, canon launched “liquid dry copying system” named because it uses plain paper and liquid developer but turns out dry copies regarding to the new need of the USA customer and to grab the market of USA but canon doubted its own marketing strength and feared that competitors would infringe on its patents. Therefore, instead of selling the system itself, it licensed the technology to other manufacturers, effectively wasting its earnings potential. These mistakes hindered Canon's financial performance, and in 1975 it failed to pay a dividend for the first time since World War II. We can say that canon was unable to understand the need of the USA people and also unable to find the strength of its competitors in the period of 1970’s.
Geographic Diversity: The geographical diversification is the vital strength of the canon. Firstly, they entered in the market of USA in 1955 and only after two years later, for the duration of 1957, Canon Europa was formed in Geneva as well. The purpose of canon to move in the location of Europe because European countries is more likely to USA and near the USA so that they can grab the market more quickly. Furthermore, the United States market is an energetic market requiring innovation to stay ahead. It was also a gateway for Canon to enter the Canadian, Mexican, Latin American and the South American markets after strong establishment in the United States. In Germany 1972 - Canon Page | 10
Giessen GmbH, Canon’s first European manufacturing site was established. Moreover, Canon Bretagne S.A. is established in France in 1983. During the year 2001- Canon Europe Ltd. is established in London as the strategic headquarters for Europe, and in the Netherlands working alongside the operational headquarters in Canon Europa N.V. Furthermore, in 11thApril, 2001 Canon Vietnam had been established. It started operation from May2002 to now. Canon Vietnam has the investment under the form - EPE 100% FDI with investment capital 306 million USD and legal capital 94 million USD. Canon Vietnam now has 3 factories and the headquarters is at Thang Long factory.
Leapfrogging of Expansion: Basically canon is the company of japan but to increases its revenue and to grab the large target population canon moving from japan to other countries like USA and its different state, Europe and its countries. United States also proved to be a ground where Canon Camera Co. entered new product lines and became Canon Inc. over the years through expanding into producing calculators, printers, toners, toner cartridges and even facsimile machines at better cost. As mentioned earlier, in just a few years of moving to United States, Canon saw a steep growth in the company where it expanded three times its size in just four years. Now Canon wants to focus on the market of Asia such as Vietnam had been established on 11April, 2001 and mostly, the developing countries. Generally, Asian countries have been considered that they have the prominent development of technology, the hardship and creativeness of employees who require low salaries as well as the stable politics, which makes a good condition for Canon to improve and diversify its products, gain the achievements as well as expand its impact on foreign markets.
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Canon business strategy:
Establish a new production system to achieve a cost-of-sales ratio of 45%.
Reinforce and expand new businesses while creating future businesses.
Restructure the global sales network in accordance with market changes.
Enhance R&D capabilities through open innovation.
Complete the Three Regional Headquarters management system capturing world dynamism.
Cultivate globally competent human resources capable of performing duties while maintaining an all-encompassing perspective of the world map.
Re-instill the Canon Spirit as a foundation for new growth.
Conclusion: A multinational organization Canon Inc. its headquarter in Tokyo, Japan that specialized in the manufacturing of imaging products and optical products as well as such as cameras, printers, photocopiers along with medical equipment which is found in World War II during 1933. Canon opened its first office in New York during 1955. As the products of the company had reached the United States shores right after World War II through returning United States servicemen during 1945 and 1946, the Japanese cameras were not new in the American market. The products of the canon rapidly made their place and it started to take over the market share from other companies or competitors. Their products were mid-priced and the quality of the products were very good also. In 1965, it was incorporated as Canon USA. Initially, Mitarai started to export their product in USA market. U.S. servicemen bringing their cameras home with them gave the company its first foothold in the U.S. market. The 1950s decade was possibly the most imperative decade for the canon. Gradually, canon shifted its operations in to the USA soil as it saw a steep growth in the first two decades. The reason to shift their operation in the USA to grab the big market because at that time USA was very developed from japan and the population of USA in very much big than Japan. In the United States canon expanded its product line and market as well such as canon entering in the market of machines. In 1985, Canon Virginia Inc. was also established which was
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capable of not only manufacturing but also recycling, engineering and technical support for the entire American region. Furthermore, it was a part of the huge overall penetration of the U.S. market by Japanese calculator makers. The company failed for the most part to distinguish itself from its competitors in the context of photocopier and calculator as well. We can say that canon was unable to understand the need of the USA people and also unable to find the strength of its competitors in the period of 1970’s. Furthermore, the United States market is an energetic market requiring innovation to stay ahead. It was also a gateway for Canon to enter the Canadian, Mexican, Latin American and the South American markets after strong establishment in the United States. Now Canon wants to focus on the market of Asia such as Vietnam had been established on 11April, 2001 and mostly, the developing countries. Generally, Asian countries have been considered that they have the prominent development of technology, the hardship and creativeness of employees who require low salaries as well as the stable politics.
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References
http://www.referenceforbusiness.com/history2/81/Canon-Inc.html#ixzz4o3PNn3M7
http://www.referenceforbusiness.com/history2/81/Canon-Inc.html#ixzz4nxufzr11
https://www.scribd.com/document/170440770/FDI-analysis-of-Canon-Vietnam
http://www.referenceforbusiness.com/history2/81/Canon-Inc.html
http://global.canon/en/vision/philosophy.html
https://www.forbes.com/companies/canon/
https://books.google.com.pk/books?id=MTZAOa1u3XoC&pg=RA1-PA1997&lpg=RA1PA1997&dq=canon+inc+guiding+principles&source=bl&ots=mOEYgoHOdo&sig=IdXlRM9Dj kG99m9A3of1AoICu1o&hl=en&sa=X&ved=0ahUKEwjgj7fu06jVAhUGEpQKHZvlDwgQ6AE IRTAG#v=onepage&q=canon%20inc%20guiding%20principles&f=false
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