A Record on the Strategic Culture and Marketing Strategy of Canon

This is a report and detail examination of internal framework and culture of Cannon. Canon can be an established international company in the photocopy and imaging industry. It manages in diverse selection of markets which includes business solution, computer imaging, broadcast and communication, medical system and industrial product. This statement further evaluates the international opportunities of Canon using PESTEL construction. PESTEL is employed to analyse the macro environment and also to indentify the key motorists of change impacting on the company. The evaluation of the inner structures and culture of Cannon was completed utilizing the McKinsey's 7S model and SWOT construction to analyze the business internal functions.

This report is split into three parts. The first part focuses on the research of internal buildings and culture of Canon. The McKinsey's 7S model and SWOT platform are being used in this section for the examination. The next part relies on Ansoff matrix to examine the overseas progress options available to Canon. The very last segment is an research of the international' opportunities for Canon and recommend a suitable overseas market for the company to access.

2. 0 An examination of Canon internal structures and culture

The structure in organization comes up as a result of the need of individuals in organization to know who is in charge, what their role is and who to carefully turn to when there is any concern. Therefore, whether small or large, local, countrywide or multinational, a business has to have a composition. Henry Mintzberg (1983, p. 2) submits that the composition of a business is the total of the ways in which its labour is divided into distinct tasks and then its coordination is achieved among these tasks. Cannon as a horizontal company includes worldwide Group companies and management committees that happen to be established to address important management issues, and provide a mutual-check function complementing its system of products and businesses. In this regard, the framework of Canon significantly affects how the company pursue and became aware its strategic aims. It allows or constraints staff (as the situation may be) to actually makes changes and get culturally align with the business strategy. All of the company strategic initiatives count on the power of the staff member to manipulate the culture of the business that guide employee behaviour in the business. Cooperate culture is the amount of the sociological markers and behaviours of these within an organisation. The degree to which this aligns with the company core prices is a robust drivers for success. In using the McKinsey's 7S model and SWOT construction, the research of Canon internal constructions and culture are further expatiated.

2. 1 Cannon Global: McKinsey's 7-S and Swot analysis

Introduced by McKinsey and Company in the 1970s, the 7-S model has revolutionalised the way management thinks about organisation effectiveness. It is essentially a framework developed to address the critical role of coordination, somewhat than structure within an company. The 7-S that is strategy, composition, staffing, style, skills, system and shared value are used to analysed Canon simultaneously below.

2. 1. 1 Analysing Cannon: The Mckinsey's 7S model

In terms of strategy, Cannon aims to attain and maintain its goal to become a truly excellent global photocopy and imaging company through its five key approaches for growth. Specifically, its strategy follows from the business adoption of the kyosei beliefs in a global corporation plan. Canon operates a set structure. It really is a horizontal company which include worldwide Group companies and management committees (Make reference to Appendix 1). It is important to notice that different firms are structured in several ways depending on the size, their culture, their activities and their background. Canon signifies what Boje and Dennehy submits as a post modern organisation (2000) and therefore able to strategically react to the modern business environment. A post modern company includes a networked set of diverse, self-managed, self-controlled clubs with poly-centres that is many centres of coordination that flip and unfold in line with the requirements of the duties. Being a post modern company not only clarifies the systemic dynamics of Canon, the ability of the company to execute the kyosei viewpoint in every section of the company is also a clear example. Furthermore, teams are planned in smooth design, employees are highly empowered and mixed up in job, information is smooth and continuous improvement is emphasized throughout.

Canon is a flat organization that prices and entrust the knowledge of its staffs to do what's right in the organization. As of Dec 31, 2009 Canon staff strengths stood at 25, 683 globally. It is has highly technological and talented staffs. Cannon recognises that learning and development can be an important aspect of an organisation growth and development (Sadler-Smith, E 2006, p. 2), they have invested on training its staffs which has leads to an improved skills and knowledge by its personnel and in particular area of staff expertise. Canon method of the articulation of its value is dependant on aligning specific and organisational goals. Therefore with well trained staff, Canon has developed the ability overtime to compete favourably on the market. Cannon has sustains a vitalised culture among its employee for an extended time frame (Kono and Clegg 1998, p. 176). The business capacity to ensure that it's distributed value are built-into the company as a whole and that they are limited by the management levels points out its style and shared value.

Furthermore, the style at which an organisation selects to follow its objectives is vital to the successful realization of these objectives. The central values are key everything that the business does, and organisational style of doing things is area of the core values. It helps defines how the employee, retailers and suppliers are going to help the company contribute to reaching the organisation eye-sight. Canon is an company that prides on excellence and technology. Cannon of invention is an invincible powerful make that delicately nudges the employees into compliance with being consistently innovative. Canon marketing campaign often takes bill the local account and languages. The kyosei corporate and business philosophy symbolizes the corporate value which is the distributed value of the business. Kyosei means living and working mutually for the normal good which embody the broader share value of the organisation "All people regardless of contest religion or culture, harmonising living and working along in to the future".

2. 1. 2 The Swot research of Canon

This section requires the identification of talents, weaknesses, opportunities and risks as regards to Cannon. The SWOT research is a management tool for developing organised response options to cope with external dangers and exploit opportunities.

2. 1. 2. 1 Strengths

The unique theory and quality of the assistance offered by Canon is its one major competitive power. It's been able to preserve this through its concentrate on inventions and also ongoing management innovative reforms. "Improved management quality refers to the achievement of real-time management that immediately sets into practise strategies predicated on well-horned decision-making process" (The Canon Story, 2009/2010). The effectiveness of the company to maintain its competitiveness also emanates from good customer marriage it has generated with its customers overtime. It has succeeded in changing the state of mind of its worker to be concentrate on total search engine optimization and revenue and has thus allow the employees to relate to customers in an effective and productive ways. Furthermore, they have multi skilled labour that cut across all section of the organisation expertise and they are very effective in complementing both the tangible and intangible company resources to its strategies.

2. 1. 2. 2 Weakness

Despite the actual fact that Cannon is a global name, it has not extensively exploits other business areas and domains outside its traditional market segments of Europe, USA, China and Japan. It should not only restrict its involvement to exhibitions in markets outside its traditional zones, it should be seen to determine production lines in such emerging economies like Brazil and South Africa. This has the probable of sustain its global competitiveness and these marketplaces are quickly growing with major global impacts. It will strengthen the company diversification process.

2. 1. 2. 3 Opportunities

Although, the company development into China is also suitable to all major brands in the imaging industry, Canon major chance for competitiveness is due to this extension into Parts of asia. In this particular light, it will be able to benefits from the go up in the demand for digital product in these countries. It bolsters its capability to capture growing demand worldwide for digital products. By focusing on China and other Asian marketplaces, Canon can benefits from the growth potential of these rapidly emerging markets.

2. 1. 2. 4 Threats

The major threats to Canon on the market are from its opponents products. You will discover intensive competitions one of the major players such as Clear, Toshiba, Sony, Samsung as well as others each striving for brilliance. This creates rigorous competition for substitute's products that Cannon has to offer with. However, it ought to be noted that Cannon is responding adequately by establishing fully automated development lines built around automated machinery and robot to support international competitiveness.

3. 0 An examination of Canon's tactical business growth

In this section, the Ansoff Matrix can be used to analyse the procedure of Canon strategic business development. The Ansoff development matrix is an instrument for proper business planning. Although, it must be used and also other decision making tools, the Ansoff Matrix is an instrument that can be used to formulate expansion technique for business and market. Desk 1 shows the matrix as developed by Igor Ansoff below

As shown in the above mentioned diagram, the matrix formulation considers two growth areas which could be the launch of a new or existing product in the marketplaces and growth of a new or extension of the existing markets. Which means progress strategies are developed predicated on the formulation of expansion strategy for the organization regarding the products and market segments. They are: One, existing product within an existing market, which is mentioned as market penetration. Two, services within an existing market, this is mentioned as product development. Three, existing product in new market segments, this is market development, and four, new product kick off in new marketplaces which is the diversification strategy.

Canon's Ansoff Matrix

3. 1. 1 Market Penetration

The market penetration strategy of Canon is give attention to selling the prevailing product in existing markets. The company in selling its existing products in the marketplaces can embark of product price cuts in other to boost the sales in existing products. The principal objective is to keep to attain higher market show in existing market segments which of course entail improving the elements of the marketing combine.

3. 1. 2 Market Development

This will involves introducing the prevailing products into a fresh market abroad or focusing on new segments in the home market. For instance, Canon release its products in a variety of countries with different purchasing power therefore the company will have to match the price tag on production of these product in competition with others existing business in the same county.

3. 1. 3 Products development

This simply consists of the development of a new product for their faithful customers in the existing markets. This mainly is been completed by creating services with changed feature to attract customers. Canon uses this as strategy of continually developing and replacing its products while at exactly the same time aiming to ensure the commitment of its customers.

3. 1. 4 Diversification

Diversification will involve that Canon go into a fresh market with new products. This plan may be well suited for Canon as they have gained a market share in founded markets and would like new expansion opportunity of business which includes reach saturation in their market segments. Therefore, it can commit completely in new areas as it does now medical imaging and other advanced technologies.

4. 0 An analysis of abroad opportunities for Canon

The PESTEL framework is employed here to analyse Canon's overseas opportunities and its suitability for international market entry. The market environment where an organisation stands contains both the micro and macro aspects of the environment. PESTEL can be used to analyse the macro environment and to indentify the key motorists of change influencing customer buying behaviour in the photography and imaging industry. The PESTEL platform for Canon in three countries is first tabulated below prior to the short analysis is done.

Factors (PESTEL)





Attract Investment

Investment friendly

Attract investment


High consumer demands

High consumer demand

High consumer demand


Rapidly extending middle class

Large middle and buoyant midsection class

Growing midsection class


Growing rapidly











Table 2: PESTEL Analysis

The above stand shows a straightforward evaluation of the way the political, economic, public, technical, environmental and legal factors have an impact on Canon business development in three countries. In terms of the politics factor, China, USA and Brazil politics environment are conducive for investment. They are attractive for investment and therefore there is opportunity for expansion by Cannon. In China, the market has been growing between 9%-11% annually since the 1980s. China's swift economic growth is mirrored in a higher awareness of Ultra-High Net Worthy of Individual (Ultra-HNWIs); it increases the people's standard of living. This is also just like Brazil where consumer's purchasing vitality is on the increase. Which means Chinese financial development within the last three years, Brazil growing consumer use and USA large middle class are signs of market opportunities for Canon.

The rapidly and upper class in China seeks to improve its id and quality of life with luxury goods which is a good chance for Cannon as its concentrates into high-tech products. China is not only a stylish market because of its large population, Chinese language consumer markets is progressively more tending towards high-tech products. The growing demand for medical imaging products in China can be an opportunity that Canon has to make use of. With regards to the environmental factors, a keenly knowing of the industry, market, tendencies, demographics and burgeoning solutions is important for Canon proper business development. For instance, there is growing global need for technology that shields the environment and therefore Cannon can seek to expand its capacity in this field. The remarkable opportunities that springs from globalization should be well balanced by the necessity to stay vigilant of changes in the societal, political and business weather of the world at large. As the existing regulations in China which is in various jurisdictions regulating issues such as taxes, personal personal privacy of China is uncertain and unpredictable, the legal factors in USA and Brazil are extremely conducive for Canon rapid business expansion and expansion programs.

4. 1 Cannon market admittance strategy

The market admittance strategy pursue by a company depends on its vision, the company attitudes towards hazards and notably the available investment finance. The level of risks and financial rewards increases as a firm moves from market entry strategy such as exporting to jv to licensing and eventually to immediate investment. Cannon evaluates the revenue programs such as licensing, investment and tactical alliances/collaboration and uses that as market entry strategy with reduced risks. A company choice of method of entrance to market is central to the execution of its international strategy (Pehrsson, 2008).

Canon has often considered a broad method of international market admittance. This is because almost all of its products are often available through distributors in many major capitals. It creates the business an already existing entity even before any major entrance into such markets. With the advantage of first player on the market, Canon has build up a solid reputation to keep up market position. However, when existing company looks for to enter developing markets, there are additional strategies and issues to address. Canon usually replicates its style and the strategy which have assists it well without significant adaptation. Therefore, Canon normally gets into new markets with the aims of achieving increased market penetration. Basically, this approach has been successful for the business in China.

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