COMPETITIVE ADVANTAGE: GENERIC STRATEGIES MATRIX
2012Atiqah Ismail Direct and Strategic Marketing 2012
differentiation focus, simultaneously with extremely high focus on quality. The digitalcamera market is technology and innovation-driven, hence low-cost production is essential tofirms competing in the market.
Canon has achieved the lowest cost production in the overall digital camera market.
Core competency in tacit and explicit knowledge
of optical and imaging technology learntover the years, with Canon¶s tradition of innovation, µanticipating tomorrow¶s need¶.
Integrated value chain
± Canon has been able to reduce cost in every aspect of the valuechain. Full ownership and control over its value chain and production. Canon uses JIT production which saves lead tine and production cost (Canon, 2011).
Passes cost advantage to compact digital market consumers to allow lower andcompetitive price (Scribd, 2010); passes cost-advantage to customer in terms of robustquality and design (not price) for its DSLR market.
Ability to drive down price.
In-house fully automated production system
Its in-house production system has a dual aim of cost-reduction and product innovation.Canon has a fully-automated production system which produces:
Proprietary key components and devices
manufacturing equipmentsIn-house production of tools, materials and technologies including intelligent robots andautomated-production systems are spread over for the production of Canon¶s entire range of digital cameras. Optimised standardisation of products at large (global) scale. Fixed costs arespread over Canon¶s wide and broad product range.
Investment in cost-saving technology
-- Canon adopts computer aided engineering (CAE)which includes and allows µprototype-less technology¶ with:1.
CAD = Computer-aided design2.
CAA = Computer-aided analysis3.
CIM = Computer-integrated manufacturing4.
MRP = Material requirement planning5.
CAP = Computer aided planningHence, allowing
Speed up development cycles