2. Sunny, Nick, Laura, Jie, Brad and Jamie

3. Introduction During the 1960’s and 1970’s, Xerox seemed invincible in the copier industry In 1959, Canon entered the industry In the 1990’s, Canon became the industry leader

4. Part one: What are the key resources and functional competences that contribute to Canon’s strategic capacities?

5. Technological competence (1) Continuous creation of innovative and market-oriented products R&D headquarters groups Corporate technical planning and operation center A main research center (2) Short development time of products Outsourcing from external partners Share technologies with joint ventures A cross-functional program called TS 1/2 (3) Diversified protected patents

6. Marketing competence ( 1) Step-by-step but short time-span introduction (2) Timely and direct feedback from customers Close relationship with dealers Wholly owned sales subsidiaries (3) Outstanding brand name and corporate image

7. Manufacturing competence Aim: to produce the best quality at the lowest cost with the best delivery Decentralized control of business units A philosophy of “stop and fix it” Holding core know-how and outsourcing Inventory management system and GIS

8. Part two: What are the strategic investments made by Canon to build these capabilities and what are some of the ways in which the company ensures its capabilities are cross-functional?

9. Strategic investments 1968 - New Process (NP) The late 1970’s, a new market for PPC The late 1970’s, a stronger dealer network in the U.S. Advertising and sponsoring various events Global Information System (GIS)

10. The ways Long-term mission and renewal of periodical plans R&D personnel’s participation in Marketing Investment on GIS CDS, CPS and CMS

11. Part three: Assess the sources of competitive advantage sought by Canon and consider their sustainability for the future

12. Reducing Costs Outsourcing of non-core competences Quick turnaround of research into new products Quick global rollouts of new products Formal waste elimination programme High parts commonality Joint ventures and licensing Risk minimisation

13. Increasing Value High advertising spending Increased R&D spending Willing to accept creative destruction in order to get onto a new Experience Curve before the opposition Combining capabilities

14. Sustainability 6 separate business units Growth through diversification Forward thinking management and CEO 3 level management approach long-term strategy not scared to aim high realisation that stability is vital recognising need to change Focus on unexploited markets