Strategic analysis Canon Essay
The world is a competitive market and every industry that has part of it should gain competitive position and should have the ability to sustain competitive advantage by implementing and effective and strategic management approach. Accordingly, industries are subjects to factors that affect the entire company (Porter, 1998). Therefore, the management of these industries are trying to identify the most efficient and suitable approach in order to survive in this stiff competition (David, 2001).
Purposely, the main goal of this paper is to asess and evaluate the strategic management implemented by Canon, which is basically a cooperative corporate style. In addition, this will also give emphasis on the strategic changes which Canon considered for maintaning and sustaining their competitiveness. Moreover, the report will also provide details on the lessons which can be learned by other industries from the business approach of Canon. Most Japanese industries are able to gain market position in the global market and one of these is Canon.
Canon is considered as one of the strongest Japanese firms which provide digital and electronic products and services. Canon has mission of ensuring that they are able to give their customers innovative, creative and ground-breaking marketing operations and to ensure the
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On one hand, the vision of the company is based on their client focus, an element which expresses their strong commitment in providing the demands and needs of the target audience. With this kind of foundation, the canon has been able to work in good value and faith develop a strong and positive global image for company excellence while sustaining global opportunities. Canon is also aiming on having consistent growth and sales by providing the best for their clients. Competitive advantage In evaluating the given case, there are several competencies which are apparent in the strategic management approach of Canon.
Below are some of the fundamental competencies of Canon. To determine the comeptitive advantage of Canon, marketing tols will be used such as SWOT, PESTLE and Industry Life cycle.
The management of Canon has employed strategic planning is driven primarily by their strong views in the contentment of their target market or customers. The Excellent Global Corporation plan of Canon can also adheres as a strength to achieve marketability. Even though the firm is a major and large company in the digital and electronics industry, the firm was able to sustain optimistic and healthy relationship target market or customers. Read about threshold capabilities
One of the strengths that makes Canon to become different and marketable with other same industries is that, the company has the abilities in creating and producing services and products based on their artistic quality and innovativeness with their designs. One more core strength of company is their capacity in initiating modifications to ensure and uphold their competitive edge in the marketplace.
Based on the case, it can be seen that one of the weakness of Canon is with regards to the inability of the management to consider taking risks in venturing into new products.
In addition, another weakness of the company is their inability to sustain the competitive edge of their products which is left behind by other industries like Sony.
The opportunity for Canon is the chance to penetrate new growth market where the adoption of the internet media should be considered. If competencies will be sustained, they will also have the opportunity to get ahead of their competitors. The trend for digitalized products and gadgets are in demand, hence, it brings opportunity for Canon to grow in this business line.
Competitors like Sony and others are major threats to the business of Canon. The inability of the firm to outgrow these rival industries may create a thret for their current positio n in the market.
The Japanese political situation has affect the way Canon strategize and operates. Accordingly, Canon has been able to adhere to the political situation and has their position in line with political issues and that the management of Canon is always ready for any issues with regards to the political sector (Brundtland, 2001).
In terms of economic aspect, Canon like any other global companies are facing the financial crisis which started in the real estate industry. It can be said that Canon should have contingency plans to avoid global recession and sustain their competitive advantage. Financial crisis that hitsd global market should be given attention.
Canon management is said to adhere to the needs of the new genertion society when it comes to ptoviding innovative and creative products to meet their demands.
The company ensures that socio-cultural aspects are given emphasis at all cost, since they are operating in the global market. Canon also considers sponsorships for charity purposes to gain good public image.
Being technologically-oriented company, Canon makes sure that they only used state of the art and high tech facilities to generate innovative and highest values products. Since the technology is rapidly changing, Canon ensures that their company are always updatedand they can easily adjust with these changes. The company also considered internet for e-marketing purposes.
In any nation, there are regulations and lawas which need to be followed. Such laws restrict or permit anya ction to be done. The laws ensure that the people do what is just and right for the sake of the employees, customers and the entire maret. Since it is a global company, Canon ensure that the follow legal structures of the countries they are operating in. Environmental The global market has become more conscious of building a better future and environment for the people. Hence, companies like Canon are doing things to make sure that next generation will have clean and green environment.
Canon is doing it by considering charities and events for the benefits of environment. They also adhere to environmental friendly products. Industry Life Cycle As part of their industry life cycle, it can be said that Canon has been able to use or deem various strategic tactics to management to maintain their competitive position as a market leader in this digital or electronic industry. To be able to evaluate the strategic approach to management implied or considered by Canon, this paper will also examine their critical success factors or key performance indicators.
For that reason, the critical success factors are being utilized as a basis for recognizing the data required by the management of a particular business. The context of key performance indicators is very direct in analyzing the principal elements which are critical to the success of the strategic approach to management of the industry (Huotari & Wilson 2001). With regards to the condition of Canon, it can be said that the business is a professional in offering original products when it comes to photocopying, digital scanners and photography printing as well as other services and products.
The company’s commitment to produce and innovate new products designs for their business lines and portfolio can be distinguished as as one of the strategic method to management of the industry. Furthermore, the business or industry has also been able to employ or deem detailed and modified marketing strategies that makes enables them develop into marketable with all their their services and products. With the foundation of Canot like the vision and mission as well as objectives another method to management of the industry is being customer-focus or customer-oriented.