Canon Inc Analysis

21 Opportunity 21 Increase in the global Electronic Market 21 Increase in the market of Digital Printers 21 Market growth of the Medical Device 21 Threats 22 Shrinking Camera Industry 22 Technological Changes 22 Medical Devices and Stringent Regulations 22 CONCLUSION & RECOMMENDATIONS 23 References 24 Executive Summary Canon Inc is a multinational company that is famously known of manufacturing complex laser machines, copiers, printers and other document solutions. They also have a brand in the optic and imagery sector where they develop, manufacture and sell digital cameras of different types and categories. The research presents a complete and comprehensive Canon Inc Analysis that includes the background information of the company and then company analysis where the following have been analyzed; PESTEL, customer, competitor, and company, marketing strategies and SWOT analysis. The research paper is concluded by in-depth recommendations and conclusion.

INTRODUCTION Background Information Canon is a Japanese multinational company that produces imaging and optical products. Then, after the Second World War, the U. S. soldiers brought their cameras back home. This move laid the foundation for Canon’s entry into the US market (Canon Communications, Inc, 1980). In 1947, Precision Optical renamed Kwanon as Canon Camera Company, Inc. Political Factors These are major factors in the macro-environment of Canon; they determine the profitability of Canon both in the long run and short run in a particular a country or region. Political factors shape market zones. Canon Inc is exposed to different market zones and thus must equip itself with different political environments of different countries. In order to achieve the desirable profitability by Canon, they have to diversify their systematic risks and adapt to various political environments.

The following factors can bear relevant meanings if Canon Inc. marketers will be able to perceive and sell their products to the populations. Cultures and believes even influences mode of advertisements. Some of the social factors that should be closely examined by Canon Inc during their PESTEL analysis include leisure interest, attitudes, culture, entrepreneurial spirit, education level, class structure and the demography (Burgess, 2017). Technological Factors One of the major challenges that disrupt the smooth operations of most companies is the rapid advancement in technology. Canon must stay ahead of technology lest their cameras are rendered useless, they must keep on keeping on innovation and creativity, and they must invest more in the R & D so as to cope with the technological changes.

This can in turn enable the company to determine their profitability structure. Different environmental norms can even be experienced in different state or counties but within the same country. This can be seen in the liability clause that is different in Florida as the rest of the United States (Egan, 2004). A lot of healthy tax breaks are given to different companies that work on renewable sectors in most of the European countries. It is very important for companies to evaluate environmental standards before entering into a market zone. Their customers can not be grouped into males or females, old or young, children or adults but everyone is capable of using their products. This means that Canon has a very wide global market, most of which remains unexplored.

They target anyone who admires and is able to use their products eg cameras. However, their cameras are grouped into three so as to fit all the groups that have the desire to use them, either for commercial purposes or domestic purposes. They have cameras for new entrants, semi-professionals and professionals. Canon invented Canon EOS 750D for them, new entrant. These cameras are available in almost every street for the upcoming youths. A lot of pressure mounted on the Canon Inc. by youths led to the manufacture of this camera which is pocket friendly (Datamonitor (Firm), 2000). According to Canon marketing director, most youths who are regarded as the new entrants orders their cameras via the online stores. They get them from supermarkets and various physical stores around the world.

Some like companies for example HP, obtain theirs directly from the Canon Company. Internal Customers Any business entity consists of different group of employees, senior and junior, but both works together to achieve a common goal. Companies should recognize their employees as the force behind the success of their company. The company must provide some basic internal services to sharpen their skills like training and to enable them grow both physically and mentally like EXPO. Competition enables companies to strategize and market their products so as to attract and retain customers so as to create a customer value. In so doing, businesses will tend to surpass the client’s needs thus will thrive and compete fairly with their competitors. It is always a strategy to pay attention to your competitors’ strategies; this will enable the company to recognize some of the opportunities in the market and take advantage of the situation and gain more market share (Hazzan, Heyd-Metzuyanim, Even-Zahav, Tal, & Dori, 2017).

When there are so many youths who want quality cameras that are affordable and efficient, when the demand of such cameras are on the upper trend then at least one of the camera manufacturers should tap the opportunity to make such cameras available to youths who are at the new entrant stage. Such a company will tend to remain competitive since it will meet the youths demand for quality, efficient and affordable cameras (Hazzan, Heyd-Metzuyanim, Even-Zahav, Tal, & Dori, 2017). Comparison between Canon and Nikon Market Shares and Sales 4 trillion yen was Canon’s revenue in 2011. They had an operating income of 378 billion. 886 billion yen was Nikon’s revenue in 2011 and with an operating system of 54 billion Award winning products Canon has won so many awards that include TIPA in 2012.

Canon actually won 5 awards while Nikon on the other hand won 2 awards in the same year and competition. JPG Quality Constant qualities of the Canon JPG files are obtained through variations which depend on the photograph details. 0 Op. margin 3. 2% Ord. profit 27. 5 Net Profit 17. HP Inc. happens to be in love with their products and the company contributes to about 18 percent of their annual sales. Their products are affordable and available both online and in their physical stores. When Canon products are ordered from their online stores, they do the delivery within a time span that doesn’t inconvenience their clients but quickly, a move that has enabled them to grown a larger clientele in their online stores. Additionally, they also manufacture lenses, film and digital SLR cameras, compact digital cameras, binoculars, scanners and printers (Hollensen, 2017).

Canon has also developed an app via which their loyal customers can order for their products. The company also has accounts with different social media platforms for easy accessibility and convenience. They also use their social media platforms like Twitter, Facebook, Instagram, Youtube and even LinkedIn to keep their customers updates with the new changes in prices or newly invested Canon product (Keegan & Green, 2017). Promotion Promotion is one of the strategies that any company will need so as to reach and maintain their customer’s base. Canon has developed varies promotional strategies that engineers creation of awareness to the public about their many products that they manufacture. These have attracted so many customers and helped the company to develop and expand their customers’ base (Hollensen, 2017).

Last but not least is the adoption strategy of using celebrities for advertisements and in promoting some of their events. It is in the public domain that the Bollywood actor, Sharma Anushka is their brand ambassador (Kotler, Kartajaya, & Setiawan, 2017) SWOT ANALYSIS OF CANON Canon Inc. is one of the largest manufacturers of optic and imaging products. It is a Japanese multinational company and indeed one of the largest in the world. The efficiency of their operations is also improved greatly (Redsun, 2016). Strong R & D The company shifted their aim into focusing on continuous innovation and evolution. This is supported by the company’s strong R & D facilities which has been allowing for the developments of disruptive products across all the categories and the company’s segments.

The building of strong IP, Intellectual Property, within Canon Company is fueled by their strong R&D which has equally enabled them to receive various patents on its innovation. Loyal customers The company has been enjoying their rich and effective marketing strategy and campaigns. Canon is known globally but this is due to their camera productions otherwise, some of their products like projectors are not so much recognized. This indeed clearly indicates lack of awareness and recognition. Opportunity Increase in the global Electronic Market Consumers of electronics products are on the upward growth trend and are expected to continuously grow in the near future. CAGR reported a growth in consumer electronics market by 2. 5 percent and stipulated that the depending on the current market forces, the market is likely to increase to 5 percent by 2022.

This is affecting the Canon’s camera sales. Technological Changes Technology industry has been experiencing rapid changes that indeed require Canon to pull up their socks so as to compete effectively in the rapid technological global market. They have to invest hugely on their R&D so as to increase costs for the company. Medical Devices and Stringent Regulations Different countries have different regulations in the medical device sector. This has led to an increase in the compliance costs thus affecting the company’s profitability. Such cameras will attract customers and people will not have to wait until EXPO day in order to purchase the product. Opportunities that are within the reach of Canon Inc should be grabbed, utilized and retained.

There are so many unexplored markets more so in Africa, the company should take advantage of this opportunity and mobilize its man-power and resources for a promotion in Africa, the continent of about 2 billion people (Quelch, 2001). References Barker, M.  S. Breakenridge, D. Marketing Foundations: Competitive Market Analysis. Carpinteria, Calif. : Lynda. com. Springer Verlag. Datamonitor (Firm). Canon, Inc. New York, NY: Datamonitor. Egan, J. , Tal, T. , & Dori, Y.  J. Application of Management Theories for STEM Education: The Case of SWOT Analysis. Cham: Springer International Publishing. Melbourne: P. Ed Custom Books. Keegan, W.  J. , & Green, M. PESTEL analysis. McMurtry, J.  M. , & Hiam, A. Marketing. Understanding digital marketing Strategies: Advertisemnet strategies for the 21st youth generation. Yang, K.  C. Multi-Platform Advertising Strategies in the Global Marketplace.