A History of Canon

Document details
Category: Business Studies Essay
Subcategory: Business Administration
Words: 2309
Pages: 11

CANON CASE 1.Relate Canon's introduction of copiers to Europe with companies' usual internationalization process. Pattern of internationalization can be measured along five scales -Degree of similarity first only in home-market (Japan), as the internationalization process continued, they started to go to other less familiar markets -Number of countries first only in Japan, later in Europe (1957) and the US (1955) -Operationshandling ooriginally, copiers only sold in Japan othan exporting copiers to Europe olater international by selling through dealer network in Europe and the US, distributors initially independent and free which product they wanted to sell o1972 takeover of Giessen FDI oin 1975 replacing distributors with integrated Canon marketing subsidiaries ological step, as company becomes more internationally committed, internal handling of foreign operations o1982 second plant in Liffre 2.Explain any differences and similarities you observed in question 1. -Approach Canon used was quite similar to the usual internationalization pattern -Canon did not engage in mergers and licensing -Reason mergers (and licensing), e.g. means loss of control and knowledge 3.Use the "Porter Diamond" to evaluate the conditions for the new facility in Giessen. -Demand conditions oStart production near observed market oTill 1972, Canon did not sell copiers in Europe, but attractive market with high market potential and established distributor network was already established oTrue especially for EC countries, thus logical choice to set up production facility there (i.e. Giessen) -Factor conditions oMost production factors available at facility in Giessen oSkilled labour, required knowledge and experience available in aimed facility oGermany is highly industrialized capital, technology, equipment as production factors should be available -Related and supporting industry oCanon contracted 80 suppliers locally to provide services and parts oImplies that there was considerable supporting industry present at location oCanon already had headquarter in neighbouring EC country (Amsterdam, The Netherlands) since 1968 oIn larger context, Canon had already an established distributor network in EC countries -Firm strategy, structure and rivalry oStrategy of Canon to...

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