Identifying and attempting to solve Canons Outsourcing problems

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Today, the world economy is growing very fast with high technologies and high standard. All organization need plans that describe how they will achieve their business goals and successfully competes for customers. They have to understand what customers need and have a strong focus to on satisfying the customers. The worlds second-largest economy only after the US and Asias largest economy, Japan is a powerful country. It is the only member of G8 from Asia and also a member of the UN Security Council on a temporary basis. Nowadays, beside the USA, China is become the biggest competitor of Japan. That why the organizations in Japan not only competitive with the all the organizations in the world but also competitive with each others in the same country, and Canon Inc. is not an exception. To survival and develop though many time global economic slowdown, Canon must have the strengths to compete with another companies about quality, service and cost. Canon tries to apply the advance of technologies to reduce cost, price and protect the environment by using recycle materials. Moreover, the application of Kyoseis philosophy also brings the effective operation strategy. Beside, the successful in organizing and managing the facility plan, positioning plan, process and technology plan are the most important strategies of operation strategy and that give Canon lots of challenge. To achieve the accomplishment and business goal in the future, Canon has to find the good outsourcing plan combine with high labor productivity for reducing cost and creates the effective marketing strategies to deliver the high quality products and services for customer with the acceptable pricing.

Economic growth is defined as an increase in the value of goods and services in an economy which is conventionally measured by the percent rate of increase in the real or price-adjusted Gross Domestic Product (GDP). We can say that the global economy has grown as the value of goods and services produced by it as a whole has gone up with many newly emerging nations overtaking economies of the USA and Japan in terms of annual GDP growth rates.

Global Economic growth has mainly taken place as a result of increased labor productivity throughout the world which has brought about increase in world incomes. This has been facilitated by the Trans National or Multi National Companies which have aided in technology transfer to the less developed countries by opening new branches in these economies. Globalization has one of its largest side effects in diffusing sophisticated technical skills to the developing economies which raises the productivity of labor in these countries. Gradually more and more people become aware of the technical skills and various turnkey projects which were previously under the aegis of the foreign companies can now be handled independently by the domestic economies. Global economic growth has also taken place with the standard of living improving in previously underdeveloped economies of India, China and countries in the erstwhile Soviet Union.

With the free movement of goods and services across the world as fallout of globalization, there has been a unification of product prices and wage rates across the world. All the companies able to operate on an international scale, their respective demands have grown which have enabled them to grow even further and take advantage of the economies of scale. The growth of international corporations has allowed them to avail of cheap labor from the developing nations which can in turn, decrease their product prices even further. Global economic growth has resulted in countries becoming and many of them have already taken off from the low level equilibrium trap. It has brought the world closer and integrated it. The increasing cooperation between the countries of the world to fight global environmental issues such as air and water pollution, emission of greenhouse gases and over fishing activities in the oceans.

b. Advantages and Disadvantage of Global Economy


The global economy can reap the benefits of increasing economies of scale. With the opening up of the economy the industrial sector has benefited with the attainment of cheap labor, capital and technology. Productivity grows more quickly and cheap import tax. Small companies also witness rapid growth owing to a wider customer base. Many opine that the global economy has promoted international peace and cooperation.


The global economy has encouraged transportation on a wider scale for the free flow of goods and services across nations. This has, in turn, led to the emission of greenhouse gases. Beside, service and white-collar jobs are increasingly vulnerable. The debt of countries would be increase and the fluctuating currency exchanges rates. The global economy has also resulted in the loss of domestic jobs it leads to the inflation. The labor intensive industries of the developed countries find it profitable to shift to third world countries where wage rates are low. This leads to the displacement of labor in the developed countries. Further, it is difficult to formulate regulations and legislations that are undifferentiated across the globe.

Top 100 companies in the world

c. Japan economy

Japan is the most develop country in East Asia, on the Pacific Ocean. China, Taiwan, Russia, North Korea and South Korea are its neighboring countries. Japan is popularly called the "Land of the Rising Sun" as the characters in its name mean "sun-origin". Japan is made of up 6,852 islands, most of which are mountainous (some even volcanic). Tokyo is the worlds largest metropolitan area and home to 30 million people. Japan is the 10th most populated country in the world, with around 128 million residents. The country boasts a modern and extensive military force that aims at self-defense and peace promotion. The standard of living is one of the highest in the world, with the highest life expectancy and the third lowest infant mortality rate.

Today, although Japan has slightly smaller than the state of California, Japan has propelled itself into a position of economic power over the last 60 years. Japan's economic strength is due to a strong national pride supported by its religion and group culture. Japan was able to very quickly industrialize after World War II and reap strong economic benefits. Many of the benefits can be linked to the strong culture that stressed not the individual but the household; the company worked for and the social group that once belonged to. However, Japanese culture is in a current state of transition and close attention must be observed in order to successfully negotiate and participate in business ventures

III. Canon Introduction

With a strong political stability factor, Canon Inc. is a company that was able to navigate the reconstruction of its country and successfully grow, merge and adapt to technological changes held over the past century making it a leader in photo imaging services and a strong contender in business operation machines to include printers, fax machines and typewriters. Furthermore, Canon's ability to build upon Japanese distribution systems and appropriately predict emerging technologies has helped her remain extremely competitive in her markets and will help her to navigate new markets as the old ones approach saturation and maturity.

Canon History

Canon Inc. is a Japanese multinational corporation that specializes in the manufacture of imaging and optical products, including cameras, photocopiers, steppers and printers. Founded on August 10, 1937 , headquarters are located in 30-2, Shimomaruko 3-chome, Ohta-ku, Tokyo 146-8501, Japan. Canon Inc.s chairman and CEO is Fujio Mitarai , with 25,683 employees. Marking 70 years in business. Canon started out as a company with a handful of employees and a burning passion. In 1933, a small laboratory dedicated to making high-quality cameras was set up in a simple apartment room in the Roppongi area of Tokyo. The following year, in 1935, Japan's first-ever 35 mm focal-plane-shutter camera, the Hanza Canon, was born, along with the origin of the Canon brand . In 1950, Canon's first president, Takeshi Mitarai. In 1955, Canon made its first step into the global market with the opening of a U.S. office in New York City. In 1957, Canon set up its sole European distributor, Canon Europa, in Geneva, Switzerland.. In the 1960s, the company took further steps toward diversification by adding electrical, physical and chemical technologies to its optical and precision technologies. in 1969 the company changed its name from Canon Camera Co., Inc. to Canon Inc. By 1970, Canon grew to 44.8 billion yen in sales and more than 5,000 employees .1975 failed to pay a dividend for the first time since becoming a public company In 1976, Canon unveiled its Premier Company Plan to boost the company to be

"Excellent global company" . in 1988, the 51st anniversary of the company's founding . . Fujio Mitarai became Canon's 6th company president in 1995, and in 1996 the Excellent Global Corporation Plan was launched. In 2002 , EOS-1Ds high-end professional digital SLR camera were introduced. Today , Canon Inc. becomes the best global brand names over the world.

Top 10 - largest Japanese companies (Forbes ranking - 2004)

Most of Japan's top manufacturers deal with high domestic costs by making as many of their products as possible overseas. Not Canon Inc. So far, the strategy at Japan's biggest office-equipment maker: Focus on the product, not the manufacturing location.

Canon Product

Canons products are divided 5 main product line, include Office imaging products ( Example :Office network MFDs, Color network MFDs, Personal MFDs, Office copying machines, Color copying machines, Personal copying machines), Computer peripherals ( example: Laser printers, Multifunction Inkjet printers, Inkjet printers, Image scanners, and other product. ),Business information products (included: Document scanners, Handy terminal, Calculators & electronic dictionaries), Cameras ( Digital Camera , digital video camcorders, Lens for Digital SLR camera , LCD projector ) Optical and other products ( for example : Semiconductor exposure system, LCD exposure systems, Broadcast equipment, Medical equipment, Large-format inkjet printers, Components).

IV. Quality, Service, Cost Challenges

a. Quality

Established in 1933, Canon invented many models and make some goal in the demand. In the recent year, customers believe in Canon quality and it become more popular in the world. Firstly, with what Canon achieved, customers cant help choosing Canons products. The qualities of Canons products are warranted by many awards, in the top of ranking. In addition, design and medium cost also are competitive advantages as for product quality, which is critical for manufacturers, they took to heart the supremacy of quality, improved product quality, thoroughly and worked to increase customer satisfaction.

Lets see Canon in worlds ranking

Best Global Brand Best Global Brand

September 29, 2008 issue

Overall ranking 36 th

2008 brand value ranking based on future earnings potential

FORTUNE Global 500 Fortune

July 21, 2008 issue

Total sales: Global ranking 189 th

Profits: Global ranking 126 th

Evaluation of five performance measures for fiscal 2007, including total sales, profits, and total assets

FT Global 500 Financial Times

June 24, 2008 edition

Market capitalization global ranking 110 th

Market capitalization ranking on March 31, 2008

(the number of outstanding shares multiplied by share price)

2008 top ten US patent holders by company

? Based on weekly patent counts issued by the United States Patent and Trademark Office.

Honored with the "Best DSLR Advanced in 2010" award, the judges identified the 18.0-megapixel Canon EOS 550D digital SLR camera as "dedicated to the demanding consumer, but definitely usable by any amateur and enthusiast photographer." ,including Full HD (1,920 x 1,080 pixels) recording and a Live View mode.

The Canon EOS 7D digital SLR secured the "Best DSLR Expert in 2010" award, and was recognized for its 18.0-megapixel CMOS sensor (APS-C size) and its ability to deliver "superb results" up to ISO 6400. Of the camera, the judges said, "Action photographers will love shooting at 1/8000 sec. shutter speed and ultra fast frame rates," and noted that "exceptional HD video makes this camera the choice of professional video makers."

Winning "Best Expert Compact Camera in 2010," the Canon PowerShot G11 was recognized as a "well-built and user-friendly" camera with a diverse range of functions and capabilities that photographers need.

The Canon PIXMA MP990 (PIXUS MP990 in Japan) inkjet printer was selected as "Best Multifunction Photo Printer in 2010."

The TIPA jury awarded the Canon image PROGRAF iPF6350 with "Best Large Format Printer in 2010

b. Service

They always creative the highest technologies to produce the highest quality products. To respond quickly customers needs, organization structures have more horizontal to quickly accommodate, they have many branches in many countries in Asia, America, Europe

Canon has the new service challenge that call Revolutionized service delivery Swiss Post Solutions has revolutionized service delivery for mail, archive management and reception/ switchboard. Services are more efficient, understanding staffs satisfying , more skilled and more productive, and clearly this has resulted in a considerable cost saving for us which fits perfectly with Canons global philosophy of Kyosei ? living and working together for the common good. Swiss Post Solutions has managed to cut Canons expenditure on these facilities substantially.

c. Cost

Canon is continuing pressure to reduce direct costs (of producing and selling) and overhead cost. There products mainly produce in Japan and America, the highest life rate countries in the world. Japan and America is famous about modern technology, but the labor is not cheap. That is why besides the high product quality, Canon cannot reduce their cost to compete easily with its competitor.

Let see the list of product price and compare with the product pricing of Canon biggest competitor in consumers product line

Canon Inc

Digital Compact Cameras

DSLR Cameras ? Lens ? Accessories

Nikon Corp.

Imaging Product

V. Advanced technologies

The development of technologies help Canon improves their sale and hit the target market. They tried to produce many modern to catch the demand and compete with their competitors. Advanced technology is one of the most far-reaching developments to affect manufacturing and services in the past century. It also increases the product and service quality, faster responses to customers needs, faster introduction of new products and services.

The development of Canon models, although in the first times, they had more negatives and weakness, but from 1978, they got more successful with new modern models. Today, the advanced technologies of Canon can help the people predict their healthy such as :

(i) Optical Coherence Tomography (OCT) Early Detection of Lifestyle-Related Diseases

regular examination now allows for early detection of any signs of lifestyle-related diseases appearing in the retina (such as abnormalities caused by diabetes). The company intends to put these technologies to work in advanced fundus diagnostic devices with a lateral resolution of 5 m and other specifications outclassing other similar devices available elsewhere in the world.

(ii) Optical Ultrasound Imaging Diagnostic Device for Detecting Cancer from New Blood Vessels

The identification of new blood vessels using this technology provides a means for the early detection of cancer. In its development of optical ultrasound imaging technologies, Canon is aiming to provide assistance in the early detection of breast cancer and related malignancy diagnoses. And as it allows tumors to be observed, the company also hopes that this technology will prove useful when making decisions regarding treatment methods

(iii) Image Fusion Supporting Medical Diagnosis

it is also hoped that image fusion will make things easier for physicians required to study a vast amount of images.

(iv) Digital Mass Microscope:

Canon's digital mass microscope technology can be used to visualize the two-dimensional distribution of proteins in a biological cell

(v) Terahertz Imaging

(vi) Artificial Intelligence Robots - Robots Capable of Learning and Self-Development

(vii) Conceptualization of Plant SMV- Picking Small Items from a Large Pile

(viii) SMV Intelligent Control Modules - Intelligent Robots Built from Elemental Technologies

(ix) Canon's Approach to Space Development Devices

(x) The Prime-Focus Corrector Lens System

Canon's Largest Achievement

Comprising seven elements in five groups and having a maximum lens diameter of 520 mm and a weight of 170 kg, the prime-focus corrector lens system outclasses all other lens units produced by Canon on a number of fronts. The system's field of view measures 30 arcminutes, roughly equivalent to the diameter of the moon, and compared to the six-arcminute field of the Cassegrain focus, it offers a viewable area that is 25 times larger.

Furthermore, the system also incorporates proprietary technologies for highly accurate correction of atmospheric dispersion ? a phenomenon whereby light from stars undergoes a direction angle shift due to differences in refractive indices as it passes through the atmosphere

Canon Inc. announced today that it has successfully developed the world's largest CMOS image sensor, with a chip size measuring 202 x 205 mm. Because its expanded size enables greater light-gathering capability, the sensor is capable of capturing images in one one-hundredth the amount of light required by a professional-model digital SLR camera.

The newly developed CMOS sensor is among the largest chips that can be produced from a 12-inch (300 mm) wafer, and is approximately 40 times the size of Canon's largest commercial CMOS sensor. Because the increased size of the new CMOS sensor allows more light to be gathered, it enables shooting in low-light environments. The sensor makes possible the image capture in one one-hundredth the amount of light required by a 35 mm full-frame CMOS sensor, facilitating the shooting of 60 frame-per-second video with a mere 0.3 lux of illumination. Potential applications for the new high-sensitivity CMOS sensor include the video recording of stars in the night sky and nocturnal animal behavior.

Through the further development of distinctive CMOS image sensors, Canon will break new ground in the world of new image expression, in the area of still images as well as video.

VI. Social-Responsibility issues

Environment is a problem that all countries in the world are trying control amount of un-recycle tracks. Customers also like using Green-products, that why Canon strives to make products that are environment- and people-friendly throughout the entire Product Lifecycle - They have been successful in developing compact cameras that efficiently utilize as few resources as possible, copying machines that consume dramatically less energy, and programs for the collection and recycling of used toner cartridges. At each stage of the lifecycle of Canon products-production, use, and recycling-Canon assesses the amount of CO2 emitted and undertakes efforts to reduce it. ECO Products - Compact and lightweight products use fewer resources. Canon digital cameras not only deliver high performance and ease of use, but also take the environment into consideration. Environmental technology - Viewing the product lifecycle in terms of its three stages - produce, use and recycle - Canon contributes to minimizing environmental burden through the effective application of environmental technologies ( for example : reusing waste toners technology, Recovery and recycling of VOC Emissions , Ozone-free Electrical Charging Technology, On-Demand SURF Toner-Fixing Technology and so on.)Canon also understand that society requires immediately addressing environmental issues such as global climate change, resource utilization of end-of-life products, and proactive prevention of pollution due to disposal of these products in order to support a sustainable society

Besides that, Canon also takes care and sponsor for people and natural activities.

a. Humanitarian Aid and Disaster Relief

. Relief Activities and Fund-raising Campaigns

. Support for Office of the UN High Commissioner for Refugees (UNHCR)

. Support for Japanese Association for the United Nations World Food Programme

. Support for World Vision Japan

. Support (collection campaign) for Overseas Children

b. Art, Culture and Sports

. Canon Enjoy Music!- Since 2008.

. The Tsuzuri Project- Since 2007

. Junior Photographers- Since 2004

. New Cosmos of Photography- Since 1991

. Canon Cup Junior Soccer

. Support for Art and Cultural Facilities

. Supporting the Royal Danish Theatre and CoBrA Museum

. Canon APPAs(Australian Professional Photography Awards)

c. Conservation of the Environment

. Canon Environmental Conservation Activity

. Equipment Provision

. Canon Forestry Program "Generation Green"

. Canon Envirothon

. NATURE series

. Supporting the China Wildlife Photography Training Camp

d. Education and Science

. Supporting the Second All Japan High School English Speech Contest

. Supporting Utsunomiya University Center for Optical Research & Education

. Offers Learning Support Programs for Children

. Charity Book Fair

. Scholarship Support through Incorrectly Addressed Postcards

. Canon Foundation in Europe

. Canon Friendship School Chain Project

e. Social Welfare

. Aid for Photo Panels Introducing Activities of The Big Issue Japan Fund

. 28th Oita International Wheelchair Marathon

. Canon's J.League Enjoy Program

. Support for Disabled Artists

. National Center for Missing & Exploited Children(NCMEC)

. Supporting the Easter Seals Telethon

With what Canon has done, the customers totally trust in Canon Brand. Morover, Canon as know as not only high quality product but also responsible corporation with environment and social.

VII. Corporate Mission

Canon determines customers' needs to deliver solutions that provide genuine customer satisfaction. Canon has a registered trademark in over 180 countries and regions, offers a diverse variety of products globally. Canon U.S.A. is in charge of the Americas and Canon Europe oversees Europe, Russia, Africa and the Middle East; Asia (excluding Japan and Korea) is handled by Canon China; Oceania by Canon Australia; and Japan by Canon Marketing Japan. By communicating closely with its customers, Canon works daily to deliver solutions and services that fulfill real needs and provide deeper customer satisfaction .The target market of Canon photography products could be divided into two major segments. The first consisted of professional photographers and highly-skilled amateurs. The second segment consisted of individuals and families using photography in order to illustrate their important moments. The global slogan "You Can Canon", adapted to suit the local market situation of Cyprus, acted as a unique selling proposition by emphasizing that the superb quality of Canon is affordable for the average potential buyer. Moreover, Canon divided their target market by age groups and occupations, focus to officers, students, businessman and photographers depend on their product lines, pricing and regions.

Sales by regions (2008)

Sales by product lines

Depended on the charts below, we found that the biggest market of Canon Inc is Officers ,Businessman, Professional/non-Professional Photographers. Beside, Canons products are delivered for students; belong to generation Y and Generation X, from 25- over 50 years old, which is the largest market. Generation Y and X always wants change and continuously updated new series; they earn a lot of money and spend for lifes convenience, traveling everywhere and enjoying best quality products. Beside, companies, school , offices, hospital are the huge target market of Business Products line. Finally, the market by regions also is focused in Europe and American, which have a lot of big buildings and developed economic, furthermore, many famous photographers in the world living there. Beside, Japan also achieves big market share because Japanese is the second developed country in the world and Japanese like use private products.

The Kyosei Philosophy

Canon introduced Kyosei as its corporate philosophy in 1988, the 51st year since the Companys founding. This philosophy clarifies Canons stance on partnerships formed with stakeholders around the world.

Kyosei envisions the achievement of a sustainable society in which all people, regardless of race, religion or culture, live harmoniously and work together into the future. Canon will continue to pursue sustainability in order to contribute to global prosperity and the well-being of mankind.

VIII. Canon Business Strategy

Canon has been one of the most innovative high technology companies in Japan. Canon has been able to strategically reposition itself effectively through systematic long range technology forecasting, identification of product segments with high potential and introduction of products in these segments ahead of its competitors. Canon has used globalisation, alliances and innovation in a well-coordinated manner. The business strategy of Canon can be termed as dynamic competence building in which distinctive competencies are renewed with the objective of dynamically maintaining its competitive edge.

5 strategies

1. Achieving the overwhelming No. 1 position

Worldwide in all current core businesses

With technology through innovation as Canons motivating force, the Company plans to differentiate itself by developing common platform technologies, which can be incorporated into the key devices that support strong products and shared by all business units.

2. Expanding business operations through diversification

While pursuing diversification through such new businesses as large-format inkjet printers and Print on Demand (POD), we are striving to establish display technology and autonomous Group company operations.

3. Identifying new business domains and accumulating required technologies

In addition to pursuing R&D in such new business domains as medical imaging, intelligent manufacturing robotics, and safety and security, Canon is focused on basic research from a

long-term perspective.

4. Establishing new production systems to sustain international competitiveness

Canon is automating design, production technology and manufacturing as well as developing robots to establish an integrated automated line. We also promote in-house production and globally optimal local manufacturing

5. Nurturing truly autonomous and strong individuals

Promoting everlasting corporate reform Canons corporate DNA involves respect for human dignity, an emphasis on technology and the encouragement of an enterprising spirit. We endeavor to pass this identity on as we cultivate new generations of global leaders.

In this way, Canon aims to establish a highly competitive production system by seamlessly integrating development, production engineering technologies, and manufacturing technologies.

IX. Canon competitive priorities

Quick Response and Repair Centers (QRCs)

Canon excellence in after-service support is essential to Chinese customers. Canon China has set up QRCs in Beijing, Shanghai, Guangzhou, and other cities to provide prompt repair of digital cameras, inkjet printers, and other Canon products by knowledgeable staff. By the end of 2010, the company plans to have a total of 25 QRCs in operation. Not only China, Vietnam and all Canon customer service around the world also have a high responsibility,

SWOT analysis:

- Strengths:

New approaches and new plans reaching to changes in the market and in the habits of consumers.

Innovation: Camera useful for people, they can take photo everywhere they come, have beauty view or somewhere sense with them. Because that, Canon also invent small camera for people can easy bring, for people not photographer profession still use camera to take beauty picture.

Ease to use: Not have many buttons, so people can know how to take easily

High quality and high responsible with sociality.

- Weakness:

High price: Some product high price so not suitable with current economic

Battery technology: Fast running out of battery, so you should bring charger

The LCD screen is obsolete and useless for checking picture quality

- Opportunities:

Canon developing in global about world-leading imaging of technologies.

Not only camera, Canon also have others like Printers, Digital Cameras, Projectors, Scanners, Business Multi-Function Devices, Production Printing Systems. The globalization economy bring a lot of chances for Canon to develop.

Canon has good market and reliable brand in the world. The application of high and new technologies every day with the chance of packaging also give them the satisfying of customers

- Threats:

Have many others famous brand competition with Canon such as Nikon, Hp, Samsung.

The global economic growing motivate the high cost for labor and facilities.

Based on SWOT analysis , Canon found out what they have do to boost their sale and increase the profit that keep changing and applying new technology, beside they should control the cost, input and deal with the suppliers to decrease the product pricing.

X. Canon Operation Strategy and Sustainability plan

d. Operation Strategy

? Product-focused: Almost products of Canon Company is cameras and technical use in office

? Make-to-stock: Canon Inc shares .- with 31% of sales from Europe, increased 2.2% in the Tokyo market after the European Central Bank raising the sector growth forecast this year.

? Standardized products

? High Volume

e. Sustainability plan

1. Process and Technology plan

Continuing to Create Innovative Technologies to Contribute to Business Solutions for Customers and for Society

Launch of the EOS 7D Digital SLR Camera, Leveraging Worldwide User Opinions :Relentless Pursuit of Fundamental Performance and Advanced Functions .Focus on the Joys of Handling and of Taking Pictures

Pursuing R&D to Boost the Screening Rate for Breast Cancer through Optical Ultrasound Mammography

Visualization of the Inside of the Body Using the Photo acoustic. Effect for

Early Detection of Pathological Changes and the Significant Alleviation of the Burden Incurred during Breast Cancer Examinations

Developing Mixed Reality (MR) Technologies that Merge the Real and Virtual Worlds to Turning the Virtual World into Reality Before Your Eyes Using New Imaging Technology and Broad-Ranging Possibilities of MR Technology?from Industry to Entertainment

2. Promoting Environmentally Conscious Management

Developing the imageRUNNER ADVANCE Series of Office Network MFDs as Environmental Frontrunner Products .Reduced CO2 Emissions Over the Entire Product Lifecycle, Utilizing a Proprietary LCA Design System

Monitoring the Progress of Activities for Each Year Based on an Action Plan

3. Creating a Corporate Culture and Supporting a Diverse Workforce

Striving to Realize a Work Environment that Enables Our Diverse Workforce to Work Enthusiastically and Reach Their Maximum Potential

Training System Established at Production Sites to Cultivate a Global Manufacturing Workforce

Promoting Employment of People with Mental Disabilities by a Special Subsidiary of Oita Canon Inc.

4. Strengthening Corporate Governance and Compliance

Working to Cultivate Ethical Standards Among Employees to Promote

Healthy Management Globally

Senior Management from Group Companies Worldwide Convene for an Expanded Corporate Ethics and Compliance Committee Meeting

Group Company Compliance Training in Response to Local Laws and Ordinances

5. Promoting Social and Cultural Contributions

Aiming to be admired and respected worldwide, we promote activities

based on our philosophy of kyosei

Progressing with the TSUZURI Project to Pass on Historical Cultural Assets

Supporting the Tracking of Polar Bears, as a WWF Conservation

Partner, to Asses the Impact of Climate Change on Their Habitat

and Promoting Environmental Education Programs

Contributing to the Cultivation of Human Resources for the Next Generation by Supporting Educational Infrastructure Development in Vietnam

XI. Location

Europe, Africa and the Middle East

With Canon Europe Ltd. at the center of our operations in Europe, we are aggressively developing markets in Russia, the Middle East and Africa. We also carry out localized production and R&D activities.

Asia and Oceania

Japan plays a central role in cultivating new businesses, while working through Canon Marketing Japan Inc. to strengthen relations with customers. We are developing our production, development and sales activities in other Asian countries and regions through Canon (China) Co., Ltd. In Oceania, we are engaged in technology development in addition to marketing activities.


Under the overall control of Canon U.S.A., Inc., we subdivide service- and supportrelated infrastructure by sales area to ensure flexible responses to market changes and to boost customer satisfaction. The company has also established localized R&D bases and production sites, and is developing new businesses.

XII. Canon Product lifecycle

Life stage Intro Early Growth Late Growth Maturity Decline

Product -APS-C 15.1 megapixels ? high quality picture But stil bad at ISO.

Improve ISO and another function. Standard and useful in the market, demand. Highly Standard, Good quality and function New product with new technologies

Volume - Customers still fell strange with this new model. - Canon 50D was known by promotion and advertising of Canon inc. - Be friendly with customers. More achievement than the previous models. - As known as the best DSLR camera. Customers trust in this product. Best buy camera in 123mua forum. Customer dont want to use the old version

Focus Try to reduce the weakness of ISO. Try to make it higher. Improve the length using of battery. - Focus on produce totally Canon 50D. Try to improve the quantity of Canon to supply for the demand. Focus to customer service

Fin. Gds Receive the order. Receive the order. Besides supply for the demand, they also store. Besides supply for the demand, they also store. Replacement by new product

Batch Size Very small because of the lack of known Improve a little bit. Open Canon 50D in many countries. Canon 50D was popular in the world. small

CANON 50D (2007)

XIII. Canon outsourcing plan

Managers in developed countries are increasingly interested in outsourcing as a potential source of competitiveness and value creation. There has been a growing awareness of the potential of outsourcing to support a range of strategies beyond that of lower cost

After looking at what it would cost to buy the applications and infrastructure and hire additional staff, Larson explains, Canon ITS concluded that it would cost at least twice as much to do the work in-house as it would to hire CustomerSat Inc., an application service provider in Mountain View, Calif. The ASP's clients pay annual hosting fees of about $100,000 on average, according to a CustomerSat spokesman.

Canon Inc. and Fujitsu Limited today announced their plans to collaborate in offering cloud computing-based managed services for printing and other IT equipment. The services will combine Canon's print management and operations technologies with Fujitsu's cloud-based IT management services to deliver an integrated package of solutions. This combination will bring a lots of benefit such as providing support in effective manager of document input- output, Fujitsu's Workplace LCM Services will support for IT resources. Develop the technologies strengths both of companies, increase the competitive advantages with multi ?function office equipment, printer and IT equipment. Furthermore, by using a cloud-computing platform, which allows software and information services to be accessed via the Internet, technologies from both companies will be linked to create a platform for managed services that can continually evolve. In addition to increasing productivity, reducing costs, and streamlining operations, the services resulting from this technological collaboration will also deliver new added value by addressing needs in areas such as the environment and security.

IT Outsourcing Business

As part of its Solutions Business, Canon Marketing Japan provides services related to the outsourcing of IT systems operations as well as cloud computing, contributing to reduced IT investment costs. The company plans to build a large-scale data center with cutting-edge capabilities by 2012 to strengthen the infrastructure of this business.

List of Canon outsourcing companies

Based on our research, over 40,507 product of Canon Inc. are manufactured in Asia, especially in China, Hong Kong and Macau, because these countries have a huge labor sourcing and cheap price. Beside, these countries quite near Japan; it can save the transport money. China is the top of GDP rating in the world also one of the largest populations, the high labor source with the cheap price make China becomes the delicious planet for international corporation. Canon recognized not only China but also Hong Kong and Macau is good consideration to open the factories there. Moreover, these countries have the same language, not exactly but the manager or employees can conversation each other normally. Beside, to warranty the quality of product, Canon has to choose carefully the brand name of companies. However, the errors still could be happened. That why Canon decided to produce the sensor or chip of product has in Japan by high standard engineers.

XIV. Conclusion

Nowadays, the development of the global economy is very necessary, take more benefits, raise the economy of the developing countries. However, besides the advantages, there are some disadvantages. Canon Inc is the one of the less companies can survive and increase profit when they live in the economic crisis. Because they apply Kyosei theory and invent new modern technologies, supply for the demand of customers and social. Bisides that, Canon also focus on protect environment, help poor children and invest in sports. Canon became the good model of business about humanity. Vietnam businesses and another companies in the world should follow Canon in their activities

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