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Management field
project: Canon Inc.
Alecce Luigi: 1802883
Ceneda Nicolò: 1824911
Cesario Giorgio: 1111111
Chaillou Marguerite: 1802495
Ciocca Andrea: 1797232
Daccò Camillo: 1777846

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[Digitare il nome della società]
Management field project: Canon Inc.

Table of contents:
1………….………………….................................History.
1.1………..…….…………………………………The foundation.
1.2…………...………………………..…………..The expansion.
1.3……….………….……………………..A continued growth.
1.4…………….………..…………………………….The maturity.
1.5…….….……………………………………………….Last years.

2………….………………...........Institutional structure.
2.1………………………………………………………….Employees.
2.2……….…..………………………….…………………Customers.
2.3………….……………………Shareholders and Investors.
2.4……….……………………………………………………Suppliers.
2.5.……….……………..….Local and global communities.
2.6…………………………..………….The institutional goals.

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The Kwanon. Co. Japan's first 35 mm focal-plane-shutter camera. Tokyo. with outlets under the direct control of the headquarters in Tokyo. and two manufacturing facilities were created . is established in Panama. office equipment products. In 1955 Canon's New York branch office is opened and two years later Canon Europe. is founded in Tokyo in 1937 by Takeshi Mitarai. is founded in Roppongi. Tokyo. wins first prize at a national camera exhibition held in San Francisco. the world’s first camera 3 3 . Its headquarters are located in Ōta.[3] Canon has a primary listing on the Tokyo Stock Exchange and is a constituent of the TOPIX index..3 A continued growth In 1970 Canon also entered the market for calculators as a result of the invention of The Canola 130. and its first cameras incorporated Nikkor lenses from Nippon Kogaku K. In 1963 Canon SA Geneva is established. ( キ ヤ ノ ン 株 式 会 社 ?) Kyanon kabushiki-gaisha is a Japanese multinational corporation specialized in the manufacture of imaging systems. the world's first 10-key electronic calculator. is produced in prototype form. UK and Australia. and Canon Amsterdam N. 1. 1. in the same years the Canon II B. It has a secondary listing on the New York Stock Exchange. As a result of this expansion the Canon Latin America. Canon became worldwide known and decided to enter in other markets.-THE HISTORY OF CANON- C anon Inc. steppers and computer printers. during the 60s. The company also changed the name to Canon Inc and founded. Canon USA Inc.2 The expansion In 1949 the company was listed on the Tokyo stock exchange. Japan. Ltd. is established in Geneva. Minato-ku. the company's sole distributor for Latin America.K. such as The Canon IVSb and the Canon Flex.V.”.. Only two years later the company begun the in-house production of Serenar Lenses.[Digitare il nome della società] Management field project: Canon Inc. the sole European distributor.1 The Fundation The company was founded in 1937. to conduct research into quality cameras. During its early years the company did not have any facilities to produce its own optical glasses. Inc. 1. Through the invention of new products. Canon moves to a new sales system. By abolishing the sole-distributor system. photocopiers. including cameras. camcorders. During the war the company became so important for the Japanese industry that when Japan resumed export activities Canon camera were designated as priorities. Precision Optical Industry. with the name “Canon Camera Co. The company continued to expand and created units in France. 1. In 1976 Canon launched the AE-1. It also started to diversify and entered both the micrographic market and the market for magnetic heads. Goro Yoshida. but its story began in 1933 when a Precision Optical Instruments Laboratory. Canon Latina American Inc. and industrial equipment. Saburo Uchida and Takeo Maeda. The next year thanks to the researches. In Taiwan ( 1970 ) and in Germany ( 1972 ).

Thank to this idea Canon wins the first Chairman's Award from the National Geographic Society and in 1995 achieved a great result: Toner cartridge collection reached 10 million units. and PC series personal-use copying machine production reaches 2 million units. Canon began The company was Canon launched lis ngits American listed on the Tokio the AE-1 Depositary Receipts stock exchange on the NYSE The Kwanon is Canon Europa Canon acquires produced in is established equity in prototype form. In 1979 a great result is achieved: Overseas sales exceed ¥100 billion for the first time. in exchange for sales rights for the Far East.5 Last years In 2000 Canon began listing its American Depositary Receipts on the New York Stock Exchange (NYSE).camera along with a range of EF lenses. the EOS autofocus SLR. 1. 1949 1970 1957 1976 1989 2000 Overseas sales exceed ¥100 billion for the first me Canon ini ated to launch the Canon entered “Excellent Global the market for Corpora on Plan” calculators Canon's New York branch office is opened Precision Op cal Industry is founded in Tokyo 1996 1979 4 4 . The amount of products produced and developed by the company brought to a change in the organizational structure : a product-specific business division structure is introduced. The plan has been divided in different phase. of the U. The NP-8500 SUPER.4 The maturity In 1988 Canon becomes the first Japanese company to qualify for an in-house certification system using the CSA mark (Canadian electrical safety standard). 1. an ultrahigh-speed copying machine capable of producing 135 copies per minute. each of them with a period of 5 years. and the plan is now arrived at the 4th phase.. By 1996 Canon initiated to launch the “Excellent Global Corporation Plan” a 5 years plan made up by Six Key Strategies Targeting Transformation and the Achievement of Continued Growth. the first such product with roman alphabet inputting.S. with an embedded micro-computer. in Geneva NeXT Inc. 1933 1955 1937 1934 A Precision Op cal Instruments Laboratory is founded. The next year Canon acquires equity in NeXT Inc. In this period the company started to focus on the enviromental’s problem by creating the Environment Assurance Promotion Committee and the toner cartridge recycling system. During the 80s Canon launched a large amount of products in the market: The Canoword 55 Japanese-language word processor.[Digitare il nome della società] Management field project: Canon Inc.

Appendix material: Figure 1.[Digitare il nome della società] Management field project: Canon Inc.1 5 5 .

preventing information leaks or having operational sites with the viewpoint of disaster prevention. overseas Employees Total 168.968 194.com/csr/search/stakeholder. 2.635 71. and management. in Japan The of Number of 95.1 (appendix) shows the complete list of major shareholders. the firm expects some quality changes and prices which are in line with the overall economic conditions.canon." Canon | CSR Activities| Index by Stakeholder. Instead. Additionally.96 126. number of 9 7 marketing & PR. For example. Table 2. business employees solutions & information technology. 2014.432 127. 19 Nov. <http://www. the following list shows some of the ways used to achieve this goal:      Prohibition of discrimination and prevention of harassment Keeping basic workers well connected to managers A highly organized rewards system based on the quality of the labor provided Allowing employees to keep a balance between their work and their life Provision of a training system 2.386 198.” 1 In exchange for labor.825 when acting as a whole they employees can be very powerful. the firm will provide compensation in terms of wages and bonuses. 2. Web. This corporation has a lot of shareholders. business administration.954 70.3 Shareholders and Investors Shareholders and investors supply financial means in the form of equity capital and in return they get a part of the profits generated by Canon. at Canon they work hard to keep this group of stakeholders satisfied. Producing good looking and comfortable products.html>.[Digitare il nome della società] Management field project: Canon Inc.1 Employees The table below shows that Canon has a very large labor force. Canon. To attract 1 "Index by Stakeholder.1 (appendix) shows the division of the ownership. Information and physical security.734 124. Number of 73.346 70.151 are divided in: “sales & consulting. They expect consistent levels of quality at reasonable prices. These are some of the rewards provided by Canon:     Ensuring high quality in products by making sure to fix any issue as soon as it arises. 6 6 .244 125.326 individuals this group of employees stakeholders 1 provide labor. Most individuals are not powerful enough to Year 2009 2010 2011 2012 2013 affect this firm.234 69.87 197.30 196. -The institutional structure- 2. Figure 2. Additionally.2 Customers The individuals in this group exchange their money for goods produced by Canon. Organized and efficient customer support. however. This is Canon’s ownership structure.

three of whom are independent external auditors. Here is an analysis of what each of these groups does:     Board of Directors: it consists of 19 members of whom two are not directly involved with Canon. This includes: a General Meeting of Shareholders. Strong Governance Structure It follows the basic processes just as stated by the law. an Audit & Supervisory Board. The members are all the directors and group company presidents. c. They supervise the internal control structures and activities for the whole Canon group. They have been chosen based on their knowledge of the business to execute duties. 7 7 . Additionally. and Executive Officers. to verify that the execution of duties is consistent with Canon’s standards. The people in this group audit all the meetings between the Board of Directors. a Board of Directors. Its aims are to maintain effectiveness and efficiency within the corporation by setting up and enforcing laws. The people working in this division have complete authority to audit all areas of business. Executive officer system: it consists of 17 members. In the quarterly meetings all the policies and measures regarding ethics and compliance are dealt with. which require a timely disclosure.[Digitare il nome della società] Management field project: Canon Inc. Organized and Efficient Committees    Disclosure committee: Fujio Mitarai (chairman & CEO of Canon) is in charge of this committee which is responsible for the disclosure of financial information. within Canon and other companies that belong to the group. Representative Directors. a. regulations and internal rules. approximately every three terms there is a high peak (+ ¥10) and the term right after it drops down ¥5. the members of the board also are in charge of on-site auditing. in fact. occurrences. Dividends Paid by Canon Dividend Per Share in Yen Due Date b. There are also observers which are part of the Audit & Supervisor Board. Internal Control Committee: Fujio Mitarai is responsible for this committee as well. What strengthens further the process is that Canon deploys executive officers and adopts its own internal auditing structure. From the table aside one can see that the organization is always regular with the payments and that they gradually increase the amount through the years. Canon seems to be very stable with the amount of money they pay. and accounting auditors. Additionally. In the last three terms it paid ¥65 per each share. Corporate Ethics and Compliance Committee: the active members of this committee are executives and members of the board. Audit & Supervisory Board: there are five members in this group. all the investors. Internal Audit Division: this is a special division in the firm with five departments and 74 employees. The members of this group discuss management decisions of representative directors and executive officers. and other material information. Paying Dividends Regular Basis on a Canon pays its shareholders twice every year. the firm uses the specific methods listed below.

6 The institutional goals    The creation of top notch products The expansion of the business The reduction of production costs 8 8 .1 (appendix) have priority over all the stakeholders. 2.[Digitare il nome della società] Management field project: Canon Inc. Canon follows a supplier evaluation structure which ensures that all the suppliers satisfy the company’s individual criteria. 2. The fact that so much time and money were spent on making the firm able to operate even after a disaster shows the extent to which they want to protect the shareholders’ and investors’ interests. if the supplier is considered to be up to Canon’s standards. From the discussion above. For example. Canon also contributes to supporting science by developing optics technologies used on the International Space Station. Canon values highly the relationships of trust it builds with local communities.2 (appendix). therefore they want to check and affect in some way their investments. He is a very important stakeholder because he is the face of Canon and the employee who manages the company’s operations. In fact. Canon holds regular information sessions to improve the communication between the two groups and to understand the companies’ business plans and procurement policies. Below are two main policies that regulate this relationship:   The introduction of an ICT system has improved the work of ordering and cost estimation. every new company that wishes to supply Canon undergoes an initial evaluation. d. we can understand that some of these stakeholders are more important than others. All the existent suppliers are constantly being evaluated by Canon to ensure they are meeting the standards the promised initially. Additionally.5 Local and Global Community     Canon contributes to society through its business activities. installed backup generators. Post-Disaster Business Continuity Planning Canon has invested a lot on the Shimomaruko headquarters in Tokyo: rebuilt all the buildings. stockpiled the basics to allow the firm to keep on functioning in case of an earthquake. In fact.4 Suppliers Canon expects a consistent level of quality at reasonable prices and appropriate payment schedules. Then. it contributes to healthcare by producing some of the most important devices used by doctors all over the world. Instead. the major shareholders listed in Table 2. Despite the firm’s worldwide operations. The reason for this is that they invest a great deal of capital. Additionally. longlasting relationships. he is the chairman and CEO of Canon. Canon puts a lot of effort on environmentally conscious manufacturing. established a crisis control center. Furthermore. a second core stakeholder is Fujio Mitarai. and prices consistent with the economic conditions. suppliers expect the minimum fluctuations in quality to be tolerated. he makes it to the supplier list. Canon made sure that there are backup information systems so the company is able to operate safely even in the event of a disaster. 2. This is shown in Figure 2.

Figure 2.1. Table 2. Appendix material: Figure 2. all the goals above should achieved by respecting the environment and giving a share of the benefits to the local and global communities.[Digitare il nome della società] Management field project: Canon Inc.1 .  The development of the technology of the future Additionally.2 9 9 .

[Digitare il nome della società] Management field project: Canon Inc.–The organizational culture- 10 10 .-The organizational structure- 4. 3.

Canon apparent strategy is to be No1 competitor in its core businesses: Imaging & Office. 5. In fact overseas sales accounted for 87.8 billion company. only 3.5 % of Canon’s sales .2 What is Canon sales geographic scope? Canon is clearly a global player addressing the world market with the majority of its products. But it is more than a ‘’B to C’’ brand (business to consumer ) . which generated 9% Operating Profit in 2013. 5. The firm does address a much broader market including heavy ‘’B to B’’ ( business to business) equipment : Canon has in fact progressively refocused its product offering on 3 main business units ( BU): among which today ‘Imaging’ and ‘Office’ with roughly the same size. -The corporate strategy5. Also as Yen has strongly devalued against US$ until recently overseas sales have been inflated by 20% on average! 11 11 .[Digitare il nome della società] Management field project: Canon Inc.1 What does Canon produce? Canon is $ 6. The group is known as the world largest camera maker for end users and the worldwide leading copier manufacturer. since it acquired Océ in 2010. generate the quasi totality of Canon sales and ‘Industry & others’ . of which Japan & Asia takes 40% and Europe & Americas share the rest with about 30% each (see below) Current trends show however that ‘overseas’ markets growth does not compensate for sluggish domestic performance.See Graph Except in this last segment.1 % .

Office BU: This Office business unit essentially addresses corporate clients printing needs. Imaging BU: The Imaging business unit is mainly.[Digitare il nome della società] Management field project: Canon Inc. as shown in the graph below. 12 12 . b. but not exclusively. semiconductors. Ink-jet printers and Broadcast equipment. 5. ( B to B) The list of products is organised as shown in the graph below in four main categories: c.3 Products for each BU a. other industries such as Medical applications ( ophthalmology) or Safety applications as illustrated in graph below. scanning etc. Industry BU: By definition the Industry Business unit is dedicated to diverse corporate clients ( B to B) but addressing - needs beyond traditional Imaging & Office related technologies including lithography. Recorders. It is organised in four sub divisions. flat panels. made of consumer oriented products ( B to C). The list of products includes in particular Cameras.

9% /2009-2013).e.e. See graph 1 . 5. the two other BUs seem to have hard time to recover after a severe decline in 2008.4 What is the apparent BUs contribution to growth? Globally only ‘Imaging System’. As shown on Graph 4.5% of sales ( last 3 years on average). although stagnant.a strong marker of the innovation & technology driven strategy of the group.has in fact suffered over last 5 years and overall Canon exhibits a quasistagnant growth since 2009 (1.Picture is even more contrasted when looking at operating profit: not only Industry does not bring the growth but it does also deteriorate the group profitability. Carries a huge diversity of products with quite different price ranges i.[Digitare il nome della società] Management field project: Canon Inc.2004-2009 vs 2009-2014. shows some sales stability over time.i.core businesses – Imaging & Office. up to 8. Graph 4 When contrasting however the two periods.: Imaging: €60 to 600.Office: -80€/150 000€ and Industry: 5 000€/ 500 000 € Dedicate heavy investments to R &D. it seems that Canon across Bus - Does focus on the production and the distribution of high quality “imaging products” leveraging cutting-edge “imaging technologies”. But all in all.( see graph 2) 13 13 .

digital radiography system etc. growth is visibly for Canon a concern or at least a challenge. Canon seems to have a strong tendency towards horizontal integration: it appears to leverage its in house core competences in optic and print (soft/hardware. a.or ‘start from the beginning’) or external expansion ( M&A).0 M €) . Vertical Boundaries When considering vertical boundaries it is important to define vertical integration as the way a firm expands up and down the value chain (incorporate upstream or downstream activities. b. such as safety. 5.[Digitare il nome della società] Management field project: Canon Inc. . medical or biotechnology. Horizontal boundaries.is a typical move to take advantage of sector’s consolidation.It appears that Canon overall favours horizontal development by addressing new markets based on its core technologies while maintaining a very strong degree of upstream integration. By horizontal integration we mean the acquisition of additional business activities that are at the same level of the value chain in similar or different industries through organic growth ( internal development .) to develop various products :ophthalmic equipment. patents…) - Either to gain in scale and market share in its core businesses Ex: acquisition of Océ – a major printing company.Or to generate growth by addressing new markets. it looks from the outside. And frankly.) Canon clearly wants to maintain a high level of up-ward integration: it produces its own lenses and software and visibly manufactures its own hardware. M&A is used when necessary to 14 14 . An illustration: Medical To enter this new market canon uses some of its various existing technologies (lens 3D scanning etc. that Canon does not have any strong growth engine anymore . industry experience. aggregating unrelated businesses.5 How does Canon organise its own integration? First it’s important to notice that in term of diversification canon doesn’t behave as a conglomerate. but as a group favouring related businesses. while leveraging its technology. especially as the Yen gets revalued against US$. Canon has a huge portfolio of high technology products with wide ranges of prices according to BU (market value varies from 50€ to 1.

Sony.[Digitare il nome della società] Management field project: Canon Inc. Consumer electronics: Samsung. where and when it is possible. Koné.) Downward.Safety: as canon want to avoid bad quality shipping and delay.e. : the recent acquisition of inprint. Sony . 5. the very nature of businesses doesn’t favour distribution sharing across product lines. IT & software: IBM. . LG) 15 15 . Microsoft c. HP d. Panasonics b. ( i. .Speed: canon is constantly updating its distribution system (the last update was in 2011. logic and interviews of professionals suggest the following approximation: For those reasons the Downward integration is weaker: Canon does not control its B to C distribution (does not have its own shops) but it carries out its logistic. Print & copiers: Xerox. secure their technological leadership and catch up in areas where the group wants to control cutting edge technologies.: a. Canon is an ‘hybrid’ player which may have chosen – maybe to reduce it’s risk profile quite a unique portfolio making hard its comparison with close players i. Therefore distribution channels are quite distinct and specific by BU: As sales/BU are usually not disclosed by companies. the next is planned for 2015) to shorten overall shipping lead times. Industry & medical: General Electric 2. LG.6 What are Canon‘s underlying hypothesis which drive their corporate strategy? We would like to highlight 3 main assumptions: 1. to secure quality. Not getting in ‘consumer electronics’ mass markets as main leaders in its space (Samsung. Canon has explicitly made two main choices: a.Cost reduction: by formulating and implementing logistics strategies throughout the world.e. Such integration is implemented to achieve three goals according to Canon official web site: .

Hence. Even though Canon was the #1 market shares holder for the Office Segment (“Office Segment” defined as printer. the whole industry has global characteristics and.[Digitare il nome della società] Management field project: Canon Inc. 5) Rivalry among existing competitors. it’s continuously evolving along with technologies. 6. which is 47. in which high entrance barriers guarantee few operating firms and the exit of the non-performing ones. Canon operates in a very attractive segment of the market. nowadays Canon’s main business unit regards office equipment production. Xerox and Konica Minolta manage to create products with similar production costs and. In conclusion. this is because massive R&D expenses are required to come up with new technologies and new products in a fast-evolving market. Not getting in Mobile Phone technologies & applications. consistently high switching costs related to these products represent a relevant lock-in for consumers. This division represented indeed in 2013 more than half of the total market of the firm with a sales ratio per segment of 49. which is going to be the industry analyzed in this section. although now exposed to technology substitution( mobile!!/camera) and slow growth industries. frequently. Hence. a risk as Mobile massively substitute to compact/ digital camera. in spite of the high profitability of the business. total costs mostly relates to the firms’ ability of creating unique products and issuing new patents. 2) Threat of substitutes: The threat of competitors is very high in this sector. the presence of incumbents makes it impossible for small entrants firms to compete with the low production prices resulting from their economies of scale. and supporter of A3-sized paper). 2) Threat of substitutes.7% against the ratio of the imaging systems unit.2%. 3. office equipment products are now used in all work places regardless the type or the dimensions of the business. Indeed. b. Therefore. However. we can understand how the main forces that shape the structure of office equipment products’ market strictly link to Canon’s business strategy: 1) Threat of new entrants. lower prices. –The competitive strategy – Even though Canon is best known to the majority of people for its imaging devices and digital cameras. as a consequence of a world-scale competition. 4) Bargaining power of suppliers. 1) Threat of new entrants: The threat of new entries is quite low in this business. 16 16 . in order to avoid the overcoming costs of issued copyrights. key competitors such as Ricoh. copier. 6. 3) Bargaining power of buyers. the high capital needed to enter the office equipment industry puts a prohibitive barrier for new entrants. Moreover. if we consider the Porter’s model for analyzing the industry.1 The industry Given their value related to efficiency. and a great success. Being “No 1” in its core businesses (camera and printer ) is an obvious strategy.

such as Canon. 5) Rivalry among existing competitors: The concentration ratio for the office equipment industry C4= 80. Furthermore. This new phase is characterized by a defined market strategy divided into 6 points. relates to innovations and their sustainability and to the ability of reducing costs in the production phase. which recall the principle that for companies willing to continually transform themselves. Moreover.S. 3) Bargaining power of buyers: The bargaining power of buyers is quite moderate. Canon upgraded the production printing system lineups. The ability of outperforming the competitors in a mature market. like Ricoh and Canon itself.[Digitare il nome della società] Management field project: Canon Inc. even though most of the brands cannot exploit direct distribution channels. cannot lower prices too much. some companies need essential components. nowadays Canon is facing a very important transformation trying to accomplish the process called “Phase IV”. with the partnerships of Kyoto University and of two hospitals affiliated to Harvard Medical School. In order to globally diversify the firm’s production Canon established three new R&D facilities in Japan. at the same time. the firm’s sales companies strengthened their business solutions to provide the customers with a higher office productivity. a subsidiary since 2010. which allows integrating the real world with the virtual world of computer graphics and consequently new connections with the design world. with the aim to develop and commercialize unique medical devices for a variety of applications. such as the development of new intelligent robots. indeed. 17 17 . in July 2012. As regards the industrial field the actions of Canon is towards innovative machineries and production techniques. the potential is unlimited: 1) “Achieving the overwhelming No. consumers are indeed not willing to trade between quality and price and hence. In order to achieve this aspect.S. Canon released the Canon MREAL System. The first project is developed both in Japan and in the U. 6. are now developing in-house productions of their own components. which seeks higher degrees of specialization. Additionally. 2) “Developing new business through globalized diversification and establishing the Three Regional Headquarters management system”. the suppliers of the necessary materials don’t own the patents and the technology to operate a forward integration and enter the market. to attract clients’ interest and to compete with e-shops. Moreover. and Europe. from low-speed to high-speed models and created new products jointly with Océ. most of them. Indeed. in order to build the machineries and exploit their patents but. retail buyers have relatively low bargaining power as they must have major global brands.1 position in all core businesses and expanding related and peripheral businesses”. U.2 The market strategy As told previously in the History section. identifying two new fields that the company aims to transform into core business: medical and industrial equipment. 4) Bargaining power of suppliers: Suppliers have a medium-low power.7% clearly indicates an oligopolistic market where four firms own the majority of the market share. the market for the office equipment products is highly based on consumers’ perception of quality. which are not produced in-house.

Moreover. paying close attention to such factors as wages. 3) “Establishing a world-leading globally optimized production system”. initiatives like the collection service for used ink cartridges that eventually developed worldwide. HP will rely on Canon for multifunction device technologies and Canon will provide technical support for jointly produced devices. Canon already has numerous local human resources in management positions at its sales companies around the world. help the customers’ positive perception of the firm. taxation systems. Canon in 2009 started a technology partnership with Hewlett-Packard (HP).. For instance. Canon is strengthening its sales capacity in emerging countries: China. To achieve an optimized production system. 4) “Comprehensively reinforcing global sales capabilities”. In particular. 18 18 . an internal expansion that had the astonishing result of increasing tenfold the firm’s profits. 6. At the same time. the firm produces higher added-value products in Japan while leaving the production of lower added-value and higher production costs products elsewhere and it opened three new production sites. In particular. This analysis permits the firm to choose the products and the systems that best fit the areas of production. in Europe. Canon believes that a strong HR function is essential for the widespread of a positive image of its products across the globe. infrastructure and country risk.000 employees stationed at our sales companies around the world are Japanese. Canon analyze trends in each country from multiple perspectives. India and Brazil on top of the others. the firm is trying to make more efficient its sales process by switching to a direct sales process with the opening of new brand-named shops. to implement the cost-reductive techniques and even open new production sites. Canon works hard in order to minimize the environmental impact while raising the standards of its products. 5) “Building the foundations of an environmentally advanced corporation”. For example. To this end. Canon’s diversification into different branches of the market could be an example of the firm’s profitable horizontal integration: Canon started indeed exploiting the same technologies in its three different business units. a strategic alliance that will not just bring benefits to both companies but will exercise competitive pressure on direct competitors such as Xerox and Ricoh.[Digitare il nome della società] Management field project: Canon Inc. On the other hand Canon’s vertical integration consists on the existence of sister companies worldwide that produce what the company. such as the toner cartridge parts and toner producer Hita Canon Materials Inc. needs. its largest regional market. as a whole.3 The competitive advantage Collaboration between vertical and horizontal integration makes a difference for Canon before its competitors. two in Asia and one in South America. around 1. and cultivating human resources befitting a truly excellent global company”. 6) “Imparting a corporate culture. These companies. open to job opportunities in different countries and keep the company running all over the world. the presidents of all but one of the sales companies are from the region.

To conclude Canon’s advantage relies also on their relationship with clients. Canon has full in-house production of some materials and products.[Digitare il nome della società] Management field project: Canon Inc. Canon’s competitive advantage is additionally constituted by their ability of cutting production costs coming from the bargaining with suppliers. Moreover. Canon can indeed benefit from a very good perception clients have of the firm and of its transparency. 19 19 . the firm offers a well-structured customers’ help service all over the world providing the customers with high-quality-standard products. indeed. a consumers’ loyalty that determines a clear market advantage. Canon exploits its size and establishes contracts with suppliers which have to fit restricted environment and quality standards depicted in the brand’s “Global Canon Green Procurement Standards”. indeed. as incumbent.

Etc. Financial Institutions 8% 3% Treasury Stock 14% 30% Individuals and Others 17% Securities Companies Other Domestic Companies 28% figure 2. -Appendix- figure 1.2 20 20 .1 figure 2.1 Canon Shareholder's Ownership Share Foreign Companies. 8.[Digitare il nome della società] Management field project: Canon Inc.

443 1.4 State Street Bank and Trust Company 505223 36.0 Nomura Securities Co.[Digitare il nome della società] Management field project: Canon Inc.370 3.5 table 2.5 The Dai-ichi Life Insurance Company. (Trust Account) 59.7 Sompo Japan Insurance Inc. Ltd.000 2. (Trust Account) 50.1 21 21 . 22.527 1.451 2.625 5. LLC 24.416 3. Ltd.7 Moxley and Co. Limited 37.3 Barclays Securities Japan Limited 30. 18.4 Japan Trustee Services Bank. Name of Shareholders Number of Shares Held Shareholdi ng (thousands of shares) Ratio (%) The Master Trust Bank of Japan.439 1. 17..2 Mizuho Bank. Ltd.319 4.6 Obayashi Corporation 16.558 2. Ltd.

Web. 9.canon. 2014.html  http://www.com/ir/annual/2012/report2012.  http://innovationleaders.pdf  http://www.com/ir/share/name. Web. 19 Nov.pdf 22 22 ." Canon | CSR Activities| Index by Stakeholder.com/CUSA/assets/app/html/market_share/Canon_2013_MktS hare_Brochure.html>.canon." Investor Relations | Stock Information.canon. 19 Nov. –Bibliography-  "Index by Stakeholder. <http://www.com/csr/search/stakeholder.[Digitare il nome della società] Management field project: Canon Inc.com/  http://usa. <http://www.html>.  Canon Sustainability Report 2014  "Canon : Investor Relations | Stock Information.org/can_sector_overview. Canon.canon. 2014. Canon.canon.