Xin Liu (Nancy) Qinming Ge (Keliven) Peng Li (Arthur) Haun Long (Cherry) Now, Avirl endorses Canon! History • In 1937, founded as a camera company Personal Digital Products Canon Office Equipments Industrial Equipments • Canon’s 4 Stages for Development Canon of Image Canon of Information Canon of Technology Canon of Social Ecology • Canon’s guidelines for management is coexistence of man and nature Industry Analysis Current Situation—Old structure was completely broken. • • • • • • Minolta Pentax BenQ Kodak Monopolization of Nikon and Canon Samsung, Olympus, Sony Existing Problems • High failure rate brought about low satisfaction • Complaints against seven problems Complaints Against Seven Problems(%) Poor quality of shooting CCD 25.11 11.47 After-sales Abnormal service screen 9.58 8.71 Price fraud 8.73 High Telescopic maintenance lens costs 6.24 5.92 Future Trends—Demand for high definition digital cameras • Analyze and determine the trend of the market • Provide more advanced products and better service • Contribute to economic development and social prosperity Strengths Excellent Brand Image Diverse Operation Principle • • • • R&D Cell Production ‘You Can’ Symbiosis • American-style • Japanese-Style Weakness • Plain Figures • Complex Function • Continuous Lawsuits Opportunities • Prosperity of Digital Camera Market • Combination With Relative Technology Threats • Intense Competition • Risks of Globalization Globalization • Sets up district sales headquarters in Asia, Europe, America. • Owns 219 subsidiary companies • Employs about 118,499 Globalization (Continued) • Ranked at the 35th position in the top 100 global brands list • Named as the 46th one in the World’s Most Admired Companies 2007 • The ranking of 170 for revenues and of 114 for profits in the Fortune Global 500 • Got the ranking of 102 as for the market value in the global 500 Global Challenge • Challenge from competitors: Nikon, Sony, Samsung, Olympus and Fuji, especially for Nikon and Sony • Challenge due to cultural difference Strategies in Globalization • Core competitive power----advanced technology emphasizes much on R&D and patents • A perfect set of services provides services running through the whole process • Corporate philosophy----Kyosei contribution to both environment and society localization Overview in Overseas Market Europe/Africa /Middle East Japan America Asia Oceania Competitors • In our case, there are two main local competitors, Nikon and Sony • In addition, there is also a traditional competitor , Leica Two main kinds of camera • Pocket-sized digital camera • Digital single-lens reflex camera (DSLR) Nikon • The strongest rival for Canon in camera industry • A pure camera provider • The marketing strategy for competing with Canon is “Tianji Racing Horses” • Cheapest DSLR--D40 • Market share increase Nikon coolpix P6000 New functions • GPS (Global Positioning System) • Wired LAN connectivity • Fix new speedlight Sony • A famous company with diversified management • Purchased the old famous camera producer Konica Minolta • Fully engaged in the field of high-end DSLR • Cooperated with CarlZeiss Leica • A camera and lens provider, found in Germany • Its digital process • Leica cooperates with Panasonic Leica M8 • How much of M8? • Leica is so classic that it represents for people’s social status, and even can be a kind of highvalue collections. • The performance of M8 • Leica should decrease the price Recommendations Short-term Quality Figures Technology Superstar Products Long-term Build a Perfect Service System Build Good Relationship with local government In Newly Open Markets Build good Relationship with International Organization s Conclusion Continues to Take Advantages of Its Strengths Improves and Modifies Its Weakness Keep the No.1 Position in Digital Camera Market