Canon Analysis

[Digitare il nome della società]

Management field project: Canon Inc.

Alecce Luigi: 1802883 Ceneda Nicolò: 1824911 Cesario Giorgio: 1111111 Chaillou Marguerite: 1802495 Ciocca Andrea: 1797232

Daccò Camillo: 1777846

[Digitare qui il sunto del documento. Di norma è una breve sintesi del contenuto del documento. [Digitare qui il sunto del documento. Di norma è una breve sintesi del contenuto del documento.]

[Digitare il nome della società]Management field project: Canon Inc.

2

Table of contents:

1………….………………….................................History.

1.1………..…….…………………………………The foundation.

1.2…………...………………………..…………..The expansion.

1.3……….………….……………………..A continued growth.

1.4…………….………..…………………………….The maturity.

1.5…….….……………………………………………….Last years.

2………….………………...........Institutional structure.

2.1………………………………………………………….Employees.

2.2……….…..………………………….…………………Customers.

2.3………….……………………Shareholders and Investors.

2.4……….……………………………………………………Suppliers.

2.5.……….……………..….Local and global communities.

2.6…………………………..………….The institutional goals.

2


3

1.-THE HISTORY OF CANON-

anon Inc. (キヤノン株式会社?) Kyanon kabushiki-gaisha is a Japanese multinational corporation specialized in the manufacture of imaging systems, office equipment products, including cameras, camcorders,

photocopiers, steppers and computer printers, and industrial equipment. Its headquarters are located in Ōta, Tokyo, Japan.[3]

CCanon has a primary listing on the Tokyo Stock Exchange and is a constituent of the TOPIX index. It has a secondary listing on the New York Stock Exchange.

1.1 The FundationThe company was founded in 1937, but its story began in 1933 when a Precision Optical Instruments Laboratory, is founded in Roppongi, Minato-ku, Tokyo, to conduct research into quality cameras. The next year thanks to the researches, The Kwanon, Japan's first 35 mm focal-plane-shutter camera, is produced in prototype form.

Precision Optical Industry, Co., Ltd. is founded in Tokyo in 1937 by Takeshi Mitarai, Goro Yoshida, Saburo Uchida and Takeo Maeda. During its early years the company did not have any facilities to produce its own optical glasses, and its first cameras incorporated Nikkor lenses from Nippon Kogaku K.K. Only two years later the company begun the in-house production of Serenar Lenses.

During the war the company became so important for the Japanese industry that when Japan resumed export activities Canon camera were designated as priorities.

1.2 The expansionIn 1949 the company was listed on the Tokyo stock exchange, with the name “Canon Camera Co., Inc.”, in the same years the Canon II B, wins first prize at a national camera exhibition held in San Francisco.

Through the invention of new products, such as The Canon IVSb and the Canon Flex, Canon became worldwide known and decided to enter in other markets. In 1955 Canon's New York branch office is opened and two years later Canon Europe, the sole European distributor, is established in Geneva. It also started to diversify and entered both the micrographic market and the market for magnetic heads.

As a result of this expansion the Canon Latin America, the company's sole distributor for Latin America, is established in Panama. In 1963 Canon SA Geneva is established. By abolishing the sole-distributor system, Canon moves to a new sales system, with outlets under the direct control of the headquarters in Tokyo. The company also changed the name to Canon Inc and founded, during the 60s, Canon USA Inc, Canon Latina American Inc, and Canon Amsterdam N.V.

1.3 A continued growthIn 1970 Canon also entered the market for calculators as a result of the invention of The Canola 130, the world's first 10-key electronic calculator, and two manufacturing facilities were created , In Taiwan ( 1970 ) and in Germany ( 1972 ). The company continued to expand and created units in France, UK and Australia. In 1976 Canon launched the AE-1, the world’s first camera with an embedded micro-computer. The amount of products produced and developed by the company brought to a change in the organizational structure: a product-specific business division

3


4

structure is introduced. In 1979 a great result is achieved: Overseas sales exceed ¥100 billion for the first time.

During the 80s Canon launched a large amount of products in the market: The Canoword 55 Japanese-language word processor, the first such product with roman alphabet inputting, The NP-8500 SUPER, an ultrahigh-speed copying machine capable of producing 135 copies per minute, the EOS autofocus SLR- camera along with a range of EF lenses.

1.4 The maturityIn 1988 Canon becomes the first Japanese company to qualify for an in-house certification system using the CSA mark (Canadian electrical safety standard), and PC series personal-use copying machine production reaches 2 million units. The next year Canon acquires equity in NeXT Inc. of the U.S., in exchange for sales rights for the Far East. In this period the company started to focus on the enviromental’s problem by creating the Environment Assurance Promotion Committee and the toner cartridge recycling system. Thank to this idea Canon wins the first Chairman's Award from the National Geographic Society and in 1995 achieved a great result: Toner cartridge collection reached 10 million units.

1.5 Last years In 2000 Canon began listing its American Depositary Receipts on the New York Stock Exchange (NYSE). By 1996 Canon initiated to launch the “Excellent Global Corporation Plan” a 5 years plan made up by Six Key Strategies Targeting Transformation and the Achievement of Continued Growth. The plan has been divided in different phase, each of them with a period of 5 years, and the plan is now arrived at the 4th phase.

Appendix material: Figure 1.1

4


5

5


6

2. -The institutional structure-

2.1 Employees

Year 2009 2010 2011 2012 2013Number of employees in Japan

73,635 71,954 70,346 70,234 69,825

Number of employees overseas

95,244 125,432 127,961

126,734 124,326

Total number of employees

168,879 197,386 198,307

196,968 194,151

The table below shows that Canon has a very large labor force. Most individuals are not powerful enough to affect this firm; however, when acting as a whole they can be very powerful.

The individuals of this group of stakeholders provide labor. Employees are divided in: “sales & consulting, marketing & PR, business solutions & information technology, business administration, and management.”1 In exchange for labor, the firm will provide compensation in terms of wages and bonuses. Additionally, at Canon they work hard to keep this group of stakeholders satisfied; the following list shows some of the ways used to achieve this goal:

Prohibition of discrimination and prevention of harassment Keeping basic workers well connected to managers A highly organized rewards system based on the quality of the labor provided Allowing employees to keep a balance between their work and their life Provision of a training system

2.2 CustomersThe individuals in this group exchange their money for goods produced by Canon. They expect consistent levels of quality at reasonable prices. Instead, the firm expects some quality changes and prices which are in line with the overall economic conditions. These are some of the rewards provided by Canon:

Ensuring high quality in products by making sure to fix any issue as soon as it arises. Producing good looking and comfortable products. Organized and efficient customer support. Information and physical security. For example, preventing information leaks or having operational sites with

the viewpoint of disaster prevention.

2.3 Shareholders and InvestorsShareholders and investors supply financial means in the form of equity capital and in return they get a part of the profits generated by Canon. This corporation has a lot of shareholders. Figure 2.1 (appendix) shows the division of the ownership. Additionally, Table 2.1 (appendix) shows the complete list of major shareholders. This is Canon’s ownership structure. To attract all the investors, the firm uses the specific methods listed below. 1 "Index by Stakeholder." Canon | CSR Activities| Index by Stakeholder. Canon, Web. 19 Nov. 2014. <http://www.canon.com/csr/search/stakeholder.html>.

6


7

a. Paying Dividends on a Regular Basis

Canon pays its shareholders twice every year. In the last three terms it paid ¥65 per each share. From the table aside one can see that the organization is always regular with the payments and that they gradually increase the amount through the years. Additionally, Canon seems to be very stable with the amount of money they pay; in fact, approximately every three terms there is a high peak (+ ¥10) and the term right after it drops down ¥5.

b. Strong Governance Structure

It follows the basic processes just as stated by the law. This includes: a General Meeting of Shareholders, a Board of Directors, an Audit & Supervisory Board, and accounting auditors. What strengthens further the process is that Canon deploys executive officers and adopts its own internal auditing structure. Here is an analysis of what each of these groups does:

Board of Directors: it consists of 19 members of whom two are not directly involved with Canon. The members of this group discuss management decisions of representative directors and executive officers.

Executive officer system: it consists of 17 members. They have been chosen based on their knowledge of the business to execute duties.

Audit & Supervisory Board: there are five members in this group, three of whom are independent external auditors. The people in this group audit all the meetings between the Board of Directors, Representative Directors, and Executive Officers. Additionally, to verify that the execution of duties is consistent with Canon’s standards, the members of the board also are in charge of on-site auditing.

Internal Audit Division: this is a special division in the firm with five departments and 74 employees. The people working in this division have complete authority to audit all areas of business, within Canon and other companies that belong to the group.

c. Organized and Efficient Committees

Disclosure committee: Fujio Mitarai (chairman & CEO of Canon) is in charge of this committee which is responsible for the disclosure of financial information, occurrences, and other material information, which require a timely disclosure.

Corporate Ethics and Compliance Committee: the active members of this committee are executives and members of the board. There are also observers which are part of the Audit & Supervisor Board. In the quarterly meetings all the policies and measures regarding ethics and compliance are dealt with.

Internal Control Committee: Fujio Mitarai is responsible for this committee as well. The members are all the directors and group company presidents. They supervise the internal control structures and activities for the whole Canon group. Its aims are to maintain effectiveness and efficiency within the corporation by setting up and enforcing laws, regulations and internal rules.

d. Post-Disaster Business Continuity Planning

Canon has invested a lot on the Shimomaruko headquarters in Tokyo: rebuilt all the buildings, established a crisis control center, installed backup generators, stockpiled the basics to allow the firm to keep on functioning in case of an earthquake. Furthermore, Canon made sure that there are backup information systems so the company is able to operate safely even in the event of a disaster. The fact that so much time and money were spent on making the firm

7

020406080

Dividends Paid by Canon

Due Date

Divi

dend

Per

Sha

re in

Yen


8

able to operate even after a disaster shows the extent to which they want to protect the shareholders’ and investors’ interests.

2.4 SuppliersCanon expects a consistent level of quality at reasonable prices and appropriate payment schedules. Instead, suppliers expect the minimum fluctuations in quality to be tolerated, long-lasting relationships, and prices consistent with the economic conditions. Below are two main policies that regulate this relationship:

The introduction of an ICT system has improved the work of ordering and cost estimation. Additionally, Canon holds regular information sessions to improve the communication between the two groups and to understand the companies’ business plans and procurement policies.

Canon follows a supplier evaluation structure which ensures that all the suppliers satisfy the company’s individual criteria. This is shown in Figure 2.2 (appendix). In fact, every new company that wishes to supply Canon undergoes an initial evaluation. Then, if the supplier is considered to be up to Canon’s standards, he makes it to the supplier list. All the existent suppliers are constantly being evaluated by Canon to ensure they are meeting the standards the promised initially.

2.5 Local and Global Community Canon contributes to society through its business activities. For example, it contributes to healthcare by

producing some of the most important devices used by doctors all over the world. Canon also contributes to supporting science by developing optics technologies used on the International

Space Station. Despite the firm’s worldwide operations, Canon values highly the relationships of trust it builds with local

communities. Canon puts a lot of effort on environmentally conscious manufacturing.

From the discussion above, we can understand that some of these stakeholders are more important than others. In fact, the major shareholders listed in Table 2.1 (appendix) have priority over all the stakeholders. The reason for this is that they invest a great deal of capital; therefore they want to check and affect in some way their investments. Additionally, a second core stakeholder is Fujio Mitarai; he is the chairman and CEO of Canon. He is a very important stakeholder because he is the face of Canon and the employee who manages the company’s operations.

2.6 The institutional goals

The creation of top notch products The expansion of the business The reduction of production costs The development of the technology of the future

Additionally, all the goals above should achieved by respecting the environment and giving a share of the benefits to the local and global communities.

Appendix material: Figure 2.1 , Table 2.1, Figure 2.2

8


9

3.-The organizational structure-

4.–The organizational culture-

9


10

5. -The corporate strategy-

5.1 What does Canon produce?Canon is $ 6.8 billion company, which generated 9% Operating Profit in 2013. The group is known as the world largest camera maker for end users and the worldwide leading copier manufacturer, since it acquired Océ in 2010.

But it is more than a ‘’B to C’’ brand (business to consumer ) . The firm does address a much broader market including heavy ‘’B to B’’ ( business to business) equipment : Canon has in fact progressively refocused its product offering on 3 main business units ( BU): among which today ‘Imaging’ and ‘Office’ with roughly the same size, generate the quasi totality of Canon sales and ‘Industry & others’ , only 3.1 % .See Graph

Except in this last segment, Canon apparent strategy is to be No1 competitor in its core businesses: Imaging & Office.

5.2 What is Canon sales geographic scope?Canon is clearly a global player addressing the world market with the majority of its products. In fact overseas sales accounted for 87,5 % of Canon’s sales , of which Japan & Asia takes 40% and Europe & Americas share the rest with about 30% each (see below)

Current trends show however that ‘overseas’ markets growth does not compensate for sluggish domestic performance. Also as Yen has strongly devalued against US$ until recently overseas sales have been inflated by 20% on average!

10


11

5.3 Products for each BU a. Imaging BU:

The Imaging business unit is mainly, but not exclusively, made of consumer oriented products ( B to C).

The list of products includes in particular Cameras, Recorders, Ink-jet printers and Broadcast equipment. It is organised in four sub divisions, as shown in the graph below.

b. Office BU:

This Office business unit essentially addresses corporate clients printing needs. ( B to B) The list of products is organised as shown in the graph below in four main categories:

c. Industry BU:

By definition the Industry Business unit is dedicated to diverse corporate clients ( B to B) but addressing

- needs beyond traditional Imaging & Office related technologies including lithography, flat panels, semiconductors, scanning etc.

- other industries such as Medical applications ( ophthalmology) or Safety applications as illustrated in graph below.

11


12

But all in all, it seems that Canon across Bus

- Does focus on the production and the distribution of high quality “imaging products” leveraging cutting-edge “imaging technologies”.

- Carries a huge diversity of products with quite different price ranges i.e.: Imaging: €60 to 600- Office: -80€/150 000€ and Industry: 5 000€/ 500 000 €

- Dedicate heavy investments to R &D- i.e. up to 8.5% of sales ( last 3 years on average)- a strong marker of the innovation & technology driven strategy of the group.

5.4 What is the apparent BUs contribution to growth?

Globally only ‘Imaging System’, although stagnant, shows some sales stability over time; the two other BUs seem to have hard time to recover after a severe decline in 2008. As shown on Graph 4.

Graph 4

When contrasting however the two periods- 2004-2009 vs 2009-2014- core businesses – Imaging & Office- has in fact suffered over last 5 years and overall Canon exhibits a quasi-stagnant growth since 2009 (1.9% /2009-2013). See graph 1 .Picture is even more contrasted when looking at operating profit: not only Industry does not bring the growth but it does also deteriorate the group profitability.( see graph 2)

12


13

And frankly, it looks from the outside, that Canon does not have any strong growth engine anymore , especially as the Yen gets revalued against US$; growth is visibly for Canon a concern or at least a challenge.

5.5 How does Canon organise its own integration?

First it’s important to notice that in term of diversification canon doesn’t behave as a conglomerate, aggregating unrelated businesses, but as a group favouring related businesses.

Canon has a huge portfolio of high technology products with wide ranges of prices according to BU (market value varies from 50€ to 1.0 M €) .It appears that Canon overall favours horizontal development by addressing new markets based on its core technologies while maintaining a very strong degree of upstream integration.

a. Horizontal boundaries.

By horizontal integration we mean the acquisition of additional business activities that are at the same level of the value chain in similar or different industries through organic growth ( internal development ,or ‘start from the beginning’) or external expansion ( M&A).

Canon seems to have a strong tendency towards horizontal integration: it appears to leverage its in house core competences in optic and print (soft/hardware, industry experience, patents…)

- Either to gain in scale and market share in its core businesses Ex: acquisition of Océ – a major printing company- is a typical move to take advantage of sector’s consolidation.

- Or to generate growth by addressing new markets, while leveraging its technology, such as safety, medical or biotechnology.

An illustration: Medical

To enter this new market canon uses some of its various existing technologies (lens 3D scanning etc.) to develop various products :ophthalmic equipment, digital radiography system etc.

b. Vertical Boundaries

When considering vertical boundaries it is important to define vertical integration as the way a firm expands up and down the value chain (incorporate upstream or downstream activities.)

Canon clearly wants to maintain a high level of up-ward integration: it produces its own lenses and software and visibly manufactures its own hardware. M&A is used when necessary to secure their technological leadership and catch up in areas where the group wants to control cutting edge technologies. ( i.e. : the recent acquisition of inprint.)

13


14

Downward, the very nature of businesses doesn’t favour distribution sharing across product lines. Therefore distribution channels are quite distinct and specific by BU:

As sales/BU are usually not disclosed by companies, logic and interviews of professionals suggest the following approximation:

For those reasons the Downward integration is weaker: Canon does not control its B to C distribution (does not have its own shops) but it carries out its logistic, to secure quality, where and when it is possible.

Such integration is implemented to achieve three goals according to Canon official web site:

- Speed: canon is constantly updating its distribution system (the last update was in 2011, the next is planned for 2015) to shorten overall shipping lead times.

- Safety: as canon want to avoid bad quality shipping and delay.

- Cost reduction: by formulating and implementing logistics strategies throughout the world.

5.6 What are Canon‘s underlying hypothesis which drive their corporate strategy?

We would like to highlight 3 main assumptions:

1. Canon is an ‘hybrid’ player which may have chosen – maybe to reduce it’s risk profile - quite a unique portfolio making hard its comparison with close players i.e.:

a. Consumer electronics: Samsung, LG, Sony , Panasonicsb. IT & software: IBM, Microsoftc. Print & copiers: Xerox, Koné, HPd. Industry & medical: General Electric

2. Canon has explicitly made two main choices:a. Not getting in ‘consumer electronics’ mass markets as main leaders in its space (Samsung, Sony, LG) b. Not getting in Mobile Phone technologies & applications, a risk as Mobile massively substitute to

compact/ digital camera.3. Being “No 1” in its core businesses (camera and printer ) is an obvious strategy, and a great success, although

now exposed to technology substitution( mobile!!/camera) and slow growth industries.

14


15

6. –The competitive strategy –

Even though Canon is best known to the majority of people for its imaging devices and digital cameras, nowadays Canon’s main business unit regards office equipment production, which is going to be the industry analyzed in this section. This division represented indeed in 2013 more than half of the total market of the firm with a sales ratio per segment of 49.7% against the ratio of the imaging systems unit, which is 47.2%.

6.1 The industry

Given their value related to efficiency, office equipment products are now used in all work places regardless the type or the dimensions of the business. Hence, the whole industry has global characteristics and, as a consequence of a world-scale competition, it’s continuously evolving along with technologies.

Therefore, if we consider the Porter’s model for analyzing the industry, we can understand how the main forces that shape the structure of office equipment products’ market strictly link to Canon’s business strategy:

1) Threat of new entrants.

2) Threat of substitutes.

3) Bargaining power of buyers.

4) Bargaining power of suppliers.

5) Rivalry among existing competitors.

1) Threat of new entrants: The threat of new entries is quite low in this business. Indeed, in spite of the high profitability of the business, the high capital needed to enter the office equipment industry puts a prohibitive barrier for new entrants; this is because massive R&D expenses are required to come up with new technologies and new products in a fast-evolving market. Hence, total costs mostly relates to the firms’ ability of creating unique products and issuing new patents, in order to avoid the overcoming costs of issued copyrights. Moreover, the presence of incumbents makes it impossible for small entrants firms to compete with the low production prices resulting from their economies of scale. In conclusion, Canon operates in a very attractive segment of the market, in which high entrance barriers guarantee few operating firms and the exit of the non-performing ones.

2) Threat of substitutes: The threat of competitors is very high in this sector. Even though Canon was the #1 market shares holder for the Office Segment (“Office Segment” defined as printer, copier, and supporter of A3-sized paper), key competitors such as Ricoh, Xerox and Konica Minolta manage to create products with similar production costs and, frequently, lower prices. However, consistently high switching costs related to these products represent a relevant lock-in for consumers.

3) Bargaining power of buyers: The bargaining power of buyers is quite moderate, indeed, even though most of the brands cannot exploit direct distribution channels, the market for the office equipment products is highly based on consumers’ perception of quality, consumers are indeed not willing to trade between quality and price and hence, cannot lower prices too much. Moreover, retail buyers have relatively low bargaining power as they must have major global brands, such as Canon, to attract clients’ interest and to compete with e-shops.

4) Bargaining power of suppliers: Suppliers have a medium-low power. Indeed, some companies need essential components, which are not produced in-house, in order to build the machineries and exploit their patents but, at the same time, most of them, like Ricoh and Canon itself, are now developing in-house productions of their own components. Moreover, the suppliers of the necessary materials don’t own the patents and the

15


16

technology to operate a forward integration and enter the market.

5) Rivalry among existing competitors: The concentration ratio for the office equipment industry C4= 80.7% clearly indicates an oligopolistic market where four firms own the majority of the market share. The ability of outperforming the competitors in a mature market, which seeks higher degrees of specialization, relates to innovations and their sustainability and to the ability of reducing costs in the production phase.

6.2 The market strategyAs told previously in the History section, nowadays Canon is facing a very important transformation trying to accomplish the process called “Phase IV”. This new phase is characterized by a defined market strategy divided into 6 points, which recall the principle that for companies willing to continually transform themselves, the potential is unlimited:

1) “Achieving the overwhelming No.1 position in all core businesses and expanding related and peripheral businesses”.

In order to achieve this aspect, Canon upgraded the production printing system lineups, from low-speed to high-speed models and created new products jointly with Océ, a subsidiary since 2010. Furthermore, the firm’s sales companies strengthened their business solutions to provide the customers with a higher office productivity. Additionally, in July 2012, Canon released the Canon MREAL System, which allows integrating the real world with the virtual world of computer graphics and consequently new connections with the design world.

2) “Developing new business through globalized diversification and establishing the Three Regional Headquarters management system”.

In order to globally diversify the firm’s production Canon established three new R&D facilities in Japan, U.S. and Europe, identifying two new fields that the company aims to transform into core business: medical and industrial equipment. The first project is developed both in Japan and in the U.S. with the partnerships of Kyoto University and of two hospitals affiliated to Harvard Medical School, with the aim to develop and commercialize unique medical devices for a variety of applications. As regards the industrial field the actions of Canon is towards innovative machineries and production techniques, such as the development of new intelligent robots.

3) “Establishing a world-leading globally optimized production system”.

To achieve an optimized production system, Canon analyze trends in each country from multiple perspectives, paying close attention to such factors as wages, taxation systems, infrastructure and country risk. This analysis permits the firm to choose the products and the systems that best fit the areas of production, to implement the cost-reductive techniques and even open new production sites. For instance, the firm produces higher added-value products in Japan while leaving the production of lower added-value and higher production costs products elsewhere and it opened three new production sites, two in Asia and one in South America.

4) “Comprehensively reinforcing global sales capabilities”.

16


17

Canon is strengthening its sales capacity in emerging countries: China, India and Brazil on top of the others. In particular, the firm is trying to make more efficient its sales process by switching to a direct sales process with the opening of new brand-named shops.

5) “Building the foundations of an environmentally advanced corporation”.

Canon works hard in order to minimize the environmental impact while raising the standards of its products; initiatives like the collection service for used ink cartridges that eventually developed worldwide, help the customers’ positive perception of the firm.

6) “Imparting a corporate culture, and cultivating human resources befitting a truly excellent global company”.

Canon believes that a strong HR function is essential for the widespread of a positive image of its products across the globe. To this end, Canon already has numerous local human resources in management positions at its sales companies around the world. For example, in Europe, its largest regional market, the presidents of all but one of the sales companies are from the region. At the same time, around 1,000 employees stationed at our sales companies around the world are Japanese.

6.3 The competitive advantage

Collaboration between vertical and horizontal integration makes a difference for Canon before its competitors. Canon’s diversification into different branches of the market could be an example of the firm’s profitable horizontal integration: Canon started indeed exploiting the same technologies in its three different business units; an internal expansion that had the astonishing result of increasing tenfold the firm’s profits. On the other hand Canon’s vertical integration consists on the existence of sister companies worldwide that produce what the company, as a whole, needs. These companies, such as the toner cartridge parts and toner producer Hita Canon Materials Inc., open to job opportunities in different countries and keep the company running all over the world. Moreover, Canon in 2009 started a technology partnership with Hewlett-Packard (HP), a strategic alliance that will not just bring benefits to both companies but will exercise competitive pressure on direct competitors such as Xerox and Ricoh. In particular, HP will rely on Canon for multifunction device technologies and Canon will provide technical support for jointly produced devices.

Canon’s competitive advantage is additionally constituted by their ability of cutting production costs coming from the bargaining with suppliers; indeed, as incumbent, Canon exploits its size and establishes contracts with suppliers which have to fit restricted environment and quality standards depicted in the brand’s “Global Canon Green Procurement Standards”. Moreover, Canon has full in-house production of some materials and products.

To conclude Canon’s advantage relies also on their relationship with clients; indeed, the firm offers a well-structured customers’ help service all over the world providing the customers with high-quality-standard products. Canon can indeed benefit from a very good perception clients have of the firm and of its transparency, a consumers’ loyalty that determines a clear market advantage.

17


18

8. -Appendix-

figure 1.1

30%

28%

17%

14%

8%

3%

Canon Shareholder's Ownership Share

Foreign Companies, Etc.

Financial Institutions

Treasury Stock

Individuals and Others

Securities Companies

Other Domestic Com-panies

figure 2.1

figure 2.2

18


19

table 2.1

19

Name of Shareholders

Number of Shares Held(thousands of shares)

ShareholdingRatio (%)

The Master Trust Bank of Japan, Ltd. (Trust Account) 59,625 5.4

Japan Trustee Services Bank, Ltd. (Trust Account) 50,319 4.5

The Dai-ichi Life Insurance Company, Limited 37,416 3.4

State Street Bank and Trust Company 505223 36,370 3.3

Barclays Securities Japan Limited 30,000 2.7

Moxley and Co. LLC 24,451 2.2

Mizuho Bank, Ltd. 22,558 2.0

Nomura Securities Co., Ltd. 18,443 1.7

Sompo Japan Insurance Inc. 17,439 1.6

Obayashi Corporation 16,527 1.5


20

9. –Bibliography-

"Index by Stakeholder." Canon | CSR Activities| Index by Stakeholder. Canon, Web. 19 Nov. 2014. <http://www.canon.com/csr/search/stakeholder.html>.

Canon Sustainability Report 2014 "Canon : Investor Relations | Stock Information." Investor Relations | Stock

Information. Canon, Web. 19 Nov. 2014. <http://www.canon.com/ir/share/name.html>.

http://innovationleaders.org/can_sector_overview.html http://www.canon.com/ir/annual/2012/report2012.pdf http://www.canon.com/ http://usa.canon.com/CUSA/assets/app/html/market_share/

Canon_2013_MktShare_Brochure.pdf

20

http://usa.canon.com/CUSA/assets/app/html/market_share/Canon_2013_MktShare_Brochure.pdf

http://usa.canon.com/CUSA/assets/app/html/market_share/Canon_2013_MktShare_Brochure.pdf

http://www.canon.com/

http://www.canon.com/ir/annual/2012/report2012.pdf

http://innovationleaders.org/can_sector_overview.html

Documents

Canon Analysis