Canon Inc. Strategic Management: Environmental & Competitive Analysis

This report provides a detailed analysis of Canon Inc.'s business strategy, focusing on the impact of the macro and micro environments. It employs frameworks such as PESTLE, SWOT, and VRIO to assess external influences and internal capabilities. The report evaluates Canon's competitive forces using Porter's Five Forces model, devising strategies to enhance its market position. Furthermore, it interprets and formulates strategic planning for Canon, culminating in a strategic management plan with tangible objectives and tactical priorities. The analysis critiques environmental and competitive data to generate valid strategic directions and actionable steps for the organization. This document is contributed by a student and available on Desklib, a platform offering AI-based study tools and solved assignments.

Business
Strategy

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
Applying appropriate frameworks analyse the impact and influence of the macro environment
on a given organisation and its strategies....................................................................................3
Critically analyse the macro environment to determine and inform strategic management
decisions......................................................................................................................................5
Analyse the internal environment and capabilities of a given organisation using appropriate
frameworks..................................................................................................................................5
Critically evaluate the internal environment to assess strengths and weaknesses of an
organisation’s internal capabilities, structure and skill set..........................................................8
Applying Porter’s Five Forces model evaluate the competitive forces of a given market sector
for an organisation.......................................................................................................................8
Devise appropriate strategies to improve competitive edge and market position based on the
outcomes.....................................................................................................................................9
Applying a range of theories, concepts and models, interpret and devise strategic planning for
a given organisation..................................................................................................................10
Produce a strategic management plan that has tangible and tactical strategic priorities and
objectives...................................................................................................................................13
Critique and interpret information and data applying environmental and competitive analysis
to produce a set of valid strategic directions, objectives and tactical actions...........................14
CONCLUSION..............................................................................................................................14
REFRENCES.................................................................................................................................15

INTRODUCTION
Business strategy means those competitive moves and actions that has been used by an
organization which is used in relation over different purpose like attracting customers, gain
succession, improve performance and attaining goal. This makes an organization for carrying out
business operations with function effectively making desired outcomes achieved. These strategy
involves various aspects like cost leadership, focus and differentiation. Organization that has
been chosen is Canon Inc that is an public company making operations performed in electric
industry. The organization ha been offering various kinds of products likeInterchangeable Les
Cameras, Fixed Lens Cameras, Instant cameras and many more. It has been established in the
year 1937 by Takeshi Mitarai, Saburo Unchida, Goro Yoshida and Takeo Mardo having
headquarters in Tokyo, Japan. In this report different aspects like impact and influence regarding
macro environment with evolution and environmental factors. Further, report discusses about
models like porters five force with strategic plan and has been used for evaluating environmental
factor. New strategies consultant recruiting respective organization and its role for development
of strategic management.
TASK
Applying appropriate frameworks analyse the impact and influence of the macro environment on
a given organisation and its strategies.
This is one of the most important part present within an organization that helps in
conducting analysis upon macro environment factors as through this decisions according to
various situations existing within an organization. The PESTLE analysis in relation to Canon
Inc. has been conducted as follows:
 Political factor- These are based upon elements and policies that makes development
done by government effecting organizations performance. In relation to an business
organization it is important for making conduct done with proper analysis of political
policy, trade, fiscal, taxation and so on. Such factors in UK is stable in nature which helps
in making firm conduct business in effective manner. This makes positive impact created
by enhancing work performance. Canon's CEO has made statement that opposes the
decision of UK leaving European Union. This has impacted the growth aspect of Japan as
also does not provide information in relation to increment in sales on country basis. In

relation to this factor impact is created on Customs Duty and VAT increase in this
directly impacts the sales of an organization in more effective manner.
 Economical factor:- These are the factors which is based upon employment and
unemployment rate, profitability, buying and customers behaviour. This is required for
Canon Inc for conducting proper analysis of UK's economic condition which makes
product development done in more effective manner. The official currency that has been
used within the country like China is “Renminbi” and has attained potential success to
US Dollar. This make Chinese currency become global economic power.
 Social factor:- These are those factor which is based upon developing understanding in
relation to buying patterns, preferences and taste of customers. Through such factors
Canon Inc. has developed wider range of electronic products as per customers needs.
Since people living in UK are have more attraction for electronic products which has
helped in uplifting sales increasing demand of Canon products within market(Kurtz,
2021).
 Technological factor:- This is useful in making organization understand about
technological advancement within marketplace so that development of product and
services is done accordingly. In relation to Canon Inc. the factor is able to develop more
faster manufacturing through applying innovation within its products which make
enhancement done within its various process.
 Environmental factor:- These factors helps an organization for developing strategy
through environmental functions. In context of Canon Inc the factor has helped in making
innovation possible through proving idea of eco friendly products which are formed using
raw materials. Through such aspect goodwill of organization has increased making
product developed in Japan by offering different part of world.
 Legal factor:- This factor have introduced certain legal aspects that is developed with the
help of legislation and act that has been formed. In relation with Canon Inc. it is required
by them to follow all rules and regulations which makes legality of the organization
maintained helping in making legal issues solved in more effective manner by making
targets achieved in terms of usage of laws.

Through this analysis Cannon Inc. has been able to make development of proper structure
possible in effective way making improvement possible in relation to polices, sales, technology,
society, environment and legal aspect.
Critically analyse the macro environment to determine and inform strategic management
decisions.
There are various kinds of macro environment factors that has been affecting decision
making of an organization directly. Such factors are political, social, economical, technological
and so on. They have been impacting business operations and functions in negative or positive
way. The micro environmental factor makes Canon Inc. develop about framework making
guidance possible in relation to work performance provided with various important aspects in
gaining high goodwill and making brand image developed within market. On the other hand
negative impact in relation to an organization has been adopting environmental factor. Through
such development of various methods and competitive advantage is achieved which increases
product and manufacturing capacity with time and cost management possible(Kong, 2020).
Analyse the internal environment and capabilities of a given organisation using appropriate
frameworks.
There are different models which has been used by various organizations in this Canon
Inc. is able to adopt and conduct analysis in relation to internal environment and capabilities for
such purpose SWOT analysis and VRIO analysis is used. Further, explanation has been provided
for both models as follows:
SWOT Analysis
Strengths Weaknesses
 Since Canon Inc. is leading electronic
company around the world which make
s customers attraction possible.
 It has wide range of products which
makes customers attraction possible.
 The organization has been presented at
Tokyo stick Exchange and NYSE.
 This is considered to be an leading
 Also it has wide range of competition in
market which makes its growth hinder
and customers loyalty reduced.
 There are lot of organizations that
copies cannon and make there face
product which causes brand image to be
effected negatively.

environmental friendly
organization(Kabongo, 2020).
Opportunities Threat
 They develop focus over growth within
technology which helps in enhancing
production process.
 They have been tied up with leading
organization of mobile like Apple and
Samsung which makes the organization
develop itself in market.
 They are having different range of
competition within marketplace which
impacts sales of the organization.
 There are different companies offering
cheap electronic technology products in
local market causing customers
distributed within them.
VRIO Model Analysis
Resources/Capabilities Valuable Rare Imitable Organised Impact of Competitive
Advantage
Model design Yes - - - Competitive
Disadvantage
Advance feature Yes Yes - - Temporary competitive
advantage
Camera Lens Yes Yes Yes - Unused competitive
advantage
Employees Yes Yes No Yes Long term advantage
In an organization different resources are used which has helped in making goals and
objectives achieved in more effective manner. As per this resource has been used in determining
organization's capabilities and effectiveness. Regarding this VRIO model has been explained as
follows:
Valuable- In has been refereed as the product of an organization that is rare and has been
helping in making goals and objectives attained for set targets. Such resources are explained as
follows:

 Model design- The design that has been formed over electronic products offer by
respective organization is unique and makes innovation possible while attracting more
and more customers.
 Advance feature- Respective organization has been conducting research on regular basis
through which introduction and unique features is formed within the products soled by
organizations.
 Camera Lens- Lens in relation to respective organization are advance feature which
makes person capturing beautiful and clear pictures.
 Employees- Staff of respective organization are highly qualified and knows every aspects
in relation to work required to be done within an organization.
Rare- These are based over products that is rare for an organization and helps in making
organization gain competitive advancement. There are various products of Cannon Inc. which is
not rare like model design because there are different rare products products which are given as
follows:
 Advance feature- Respective organization over products having rare advance features
which is competitors attracting huge range of customers.
 Camera Lens- Camera lens in respective of organization is very unique that has been
helping photographer capturing most effective image(Juliana, 2021).
 Employees- Employee having rare help in attaining objective in more effective manner.
Imitable- It has been defined as the product of an organization which is not copied by an
organization. There are various products which is respective firm and can be copied like Model
design and its unique features which cannot be copied and has been explained as follows:
 Camera Lens- lens that is used by Canon Inc. is advance and cannot be copied in aby
manner by another organization of same jonner.
 Employees- Staff working within the firm are loyal to its workplace an are highly skilled
with experience and cannot be copied by any other organization.
Organised- This has been defined as those resources which is required by an organization after
some time duration. In relation to firm various resources are required to be organized like Model
design, Advance feature and Camera Lens in relation to innovation taking place within world.
There are certain resources which are not required to be organized over long time duration which
are:

 Employees- Staff acts as representatives of Canon Inc. which helps in making skills,
knowledge and flexibility increased with various objectives achieved.
Critically evaluate the internal environment to assess strengths and weaknesses of an
organisation’s internal capabilities, structure and skill set.
Through conducting these analysis internal environment has been improving which has
made analysis possible for strength and weakness. In relation with firm management various
strengths like employees is more effective and has been adopting technology easily making huge
value within market and customers loyalty increased. Such benefits has helped in making Canon
Inc. manage business operations conducted with functions which effectively helps in making
targets achieved. In some aspects limitations of respective organization like inventory and
planning is done in effective manner over some products making detection with quick launches
possible. Thus weakness has been impacting respective operations which ficus on negative
aspect taking place within Canon Inc.
Applying Porter’s Five Forces model evaluate the competitive forces of a given market sector for
an organisation.
Porter's five force model has been developing firm for making evaluation done at
competitive level at marketplace. This is used for developing strategies and plan as per the goals
and objectives set by an organization. Further, analysis of Canon Inc. in relation to Porter's five
force model has been explained as follows:
 Threat of New Entrants- This has been defined as those conditions within which new
organization has enter into particular organization which easily as they have less rules
and regulation. In relation to an organization threat of new entry is low because in order
to enter in electronic industries huge expense requires by an organization(Hsieh, 2019).
 Threat of Substitute- This means those conditions with several organization that has
been offering same products and services offered by an organization. In context of Canon
Inc. the threat possessed by substitute is high within electronic industry and its different
organizations like Nikon, Panasonic and Sony. There are various kinds of phone which
makes better picture to be taken with features like calling, texting and android.
 Bargaining Power of Suppliers- According to the situation supplier is able to demand
for money offering low quality products. In relation to Cannon Inc. bargaining power of
supplier is low within the industry that helps in making respective firm operate. So,

supplier have less control upon prices as well as respective organization which makes
maintaining proper relationship with supplier.
 Bargaining Power of Buyers- This is considered as that situation within huge number of
customers are present in particular industry then high quality product makes demand
increase. In relation to organization bargaining power has of buyer is more as they are
offering various organizations large number of options.
 Competitive Rivalry- This is defined as condition that is having large competitive
organization within marketplace. In relation to Canon high competitive organization
exists within market place. In relation to this examples are Nikon, Sony, Panasonic, HP
Inc., Samsung Electronic co. and many more.
Through using the model of porter's five force model the Canon Inc. has been able to
make understanding developed within the position at marketplace as lot of strategies is
developed by them as per the plans made regarding it. Thus it is one of the most important part
of an organizations growth and expansion which makes success developed within organization
related to particular market(Habib, 2021).
Devise appropriate strategies to improve competitive edge and market position based on the
outcomes.
For an organization it is required for making development possible over strategies and
plan that helps them in attaining market advancement done in successful manner. These are
those strategies which is based upon various factors that has helped in gaining competitive edge,
taking feedbacks and suggestion improved done within quality of product and so on. Along with
this strategies adopted by Canon Inc. makes development possible of strategies which makes
proper relationship developed within stakeholders. In the other hand in order to gain market
position in relation to various types of strategies like market analysis which is used for
understanding customers needs and there requirement which makes brand image developed for
an organization. This makes proper structure to be created with better technique used within
particular marketplace.

Applying a range of theories, concepts and models, interpret and devise strategic planning for a
given organisation.
An organization has been adopting various theories, models and concept which makes
strategic planning done in more effective manner as per the report. In this proper analysis of
market with understanding of customers need and demand with various other factors. This is
possible because of management which is conducted for making proper analysis done in relation
to demand and supply adopt circulation with proper flow. Further, it has been defined through
two models which has been explained as follows:-
Ansoff Matrix Model
This model is developed by Ignor Ansoff in the year 1957. It is used for strategic
preparation instrument that has been helping an organization for measuring future success with
growth of an organization. It has aid an organization management making determination through
which they make expansion of business with potential marketplace. Evaluation of respective
mode in relation to Canon Inc. has been explained as follows:
 Market Penetration- This has been defined as an action plan as per which an
organization decides for selling their existing product and services existing within market
place. This has been improving advertisement and promotional capacity in order to attract
more and more customers. Also the method adopted makes enhancement of promotional
activities possible for audience(Dalwai, 2021).
 Market Development- This is that kind of situation which has been used by an
organization for expanding business operations and functions within new market making
customers attraction possible. In relation to organization like Canon Inc. expansion is
done with business operations and functions that makes profit to be increased with huge
audiences.
 Product Development- This is an important situation which an organization is
developed and launching of new product is done within existing marketplace so that
customers attractive in nature. In context of Canon Inc. the method has been adopted is.
Ansoff Matrix Model
The development of this model is done by Ignor Ansoff in the year 1957. This is
considered as strategical preparation instrument that has helped an organization in measuring
success as well as growth of business is done with the help of determining success. This will aid

organization management which determines about expansion and evaluation of Canon Inc. and
has been explained as follows:
 Market Penetration- This is based upon action plan which has been created for selling
their existing services and product within marketplace. It has been improving
advertisement and promotional activities making customers attraction possible. In context
of respective organization adopting method having enhancement done in relation to
promotional activities of electronic products.
 Market Development- It is situation which is based upon making expansion of business
operations and activities done in new marketplace which has been attracting new
audiences over their existing products. In relation to Canon Inc. through this business
operations and their functions can be expanded making profit earning possible with huge
number of audiences(Chen, 2017).
 Product Development- This is considered as an situation within which an organization
makes development and launching new product possible in existing marketplace so that
customers get more attractive products. In context of Canon Inc. if the method has been
adopted then they are require to introduce new product within marketplace leading
towards customers attraction.
 Diversification- It is based upon situation within which an organization needs for
introducing new product within marketplace. Through such development new customers
has been offering more innovation of new product and services. In context of respective
organization if they adopt the method then they make development of new product ad
launch within new market.
Through making analysis done in relation to matrix more appropriate matrix regarding
Canon Inc. will be market development that makes its expansion possible within market place.
This helps organization to attract customers and make marketplace. This makes an organization
attract large customer that helps in building customers base and increase within market share.
Porter's Generic Model
This is defined as that strategy adopted by an organization for making focus developed
upon making achievement done in relation to competitors benefits within particular defined area.
This helps an organization in deciding about strategy which decides cost of product so that they

can gain high competitive advancement. Explanation of respective strategy in perspective of
Canon inc. which has been explained as follows:
 Cost Leadership- This has been defined as that strategy within which an organization
become low cost manufacturer within particular marketplace. In relation over factor
considered as technology,economies of scale, preferential accessibility to raw material. I
relation to this Canon Plc. If they adopt respective strategy they have noticed for
reduction within cost so that large customer base has been formed.
 Differentiation – As per the strategy an organization makes development possible of
unique products with high value for buyers. In context of Canon Inc. of an method has to
be adopted then some unique features is required to be added over products so they can
satisfy needs with desired expectations. Through this they also get opportunity fir
demanding more price according to technology or products feature. Such camera's has
been designed by professional photographer in order to make professional photography
adopted(Chen, 2019). Focus- This has been defined as that method which has been used by an organization
helping in making competitive scope developed within particular industry. The factors
are explained as follows: Cost Focus- As per this method an organization requires to have focus upon making cost
advantages achieved through minimizing cost product. This makes customer afford
products through enhancing sales.
 Differentiation Focus- As per this strategy an organization needs for making
development done over innovative product as per the target segment. This is because it
helps in making unique and competitive marketplace. In context of Canon Inc. if they
adopt method then introduction as well as unique feature or products that makes
attraction of customer possible with new innovation.
By analysing all the above factors it can be determine that The Canon Inc. can adopt cost
leadership approach so that they can attain their target or objective in effective manner. Along
with this it will also help them in gaining high competitive advancement.matrix then they have to
introduce new electronic product at marketplace so that customers get attracted and purchase the
product.

Produce a strategic management plan that has tangible and tactical strategic priorities and
objectives.
Strategic Management Plan
Strategies- The Canon Inc. has been adopting strategy as per the will for introducing
their electronic product within new marketplace. This is because they are able to adopt as per
market opportunities in more effective manner. On the other hand Canon Inc. has adopted cost
leadership strategy which makes high growth and development to be achieved with potential
within marker place(Bıçakcıoğlu-Peynirci, 2020).
Objectives- The objective which are developed by The Canon Inc. are given below:-
 The Coanon Inc. want to launch their electronic products within market of Vatican City
within 1.5 years which increases market share by 25%. Vatican a city that is surrounded
by Rome and is the smallest city within world encircled by 2 mile border with Italy. The
pope resides in the Vatican Palace within the city walls. The nation has no income tax
and no restriction on the import and export of funds.
 The respective company also going to low down the cost of products at level of 12
percent within 10 months which help in increasing customers base.
Tactics- In order to perform functions as per the set objectives respectively an organization
adopts tactics explained as follows:
They are require to conduct management of funds so that they are able to conduct operations in
effective manner for attaining objectives which has been formed.
Its is more effective which makes skills and experience of people of Vatican City makes market
understood.
Critique and interpret information and data applying environmental and competitive analysis to
produce a set of valid strategic directions, objectives and tactical actions.
The Canon Inc. management has been adopting model that has been helping in making
understanding about competitive and potential market for making goals and objectives achieved
more defectively. Through using analysis like PESTLE and SWOT various aspects of external
environment factor has been covered. Through VRIO analysis evaluation is done which helps
them in making weakness, strength, opportunities, threat, capabilities and performance of their
business analysed properly(Aldea, 2018).

CONCLUSION
From the above analysis it can be observed that various topics has been discussed in
relation over business strategy. Such strategy has helped in making development possible vy
creating strategies in more effective manner. This is important as it makes evaluation done in
relation to macro environmental factors of an organization makes analysis conducted in effective
manner. This lead over attaining competitive edge within market and the Ansoff matrix with
porter's generic model has been discussed. Through these strategies business operations are
conducted in making objectives and targets achieved more effectively.

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