Canon growth strategy

In its corporate strategy program, Canon is about to enter Phase III of its Global plan to achieve net sales of 5.5 Trillion yen with over 550 Billion yen in profit by 2010. It also plans to be the top 100 Global Company.

Here is their step by step plan:

􀂄 Achieving the overwhelming No. 1 position worldwide in all current core businesses
􀂄 Expanding business operations through diversification
􀂄 Identifying new business domains and accumulating required technologies
􀂄 Establishing new production systems to sustain international competitiveness
􀂄 Nurturing truly autonomous and strong individuals promoting everlasting corporate reform

As for Digital cameras, they have developed key components in devices such as their CMOS sensors and imaging engines (DigiC III). In 2006, the Canon 400D/ Rebel XTi helped push their market share from 20% in 2005 to 22% in 2006.

Nikon and Canon's supply chain unable to meet demand!

According to Chris Chessman from Amateur Photographer, the massive demand for the Nikon D80 / D40 and Canon's popular 400D / Rebel XTi digital SLRs has meant their supply chain could not cope with the huge orders. The upsurge occurred during the 2006 Christmas break.

All three cameras are price competitive entry to amateur DSLR cameras that were released last year and had extremely positive reviews.

A Canon spokesman told Amateur Photographer that all models in Canon's range of Digital SLR cameras are in good supply with the exception of the new Canon EOS 400D. This is a result of extremely high demand, not only in the UK and European market but worldwide. He added that they are in constant communication with the Canon EOS 400D production facility to push capacity so that all their customers' orders are fulfilled as quickly as possible.

Nikon UK's group marketing manager Jeremy Gilbert said the demand for digital SLRs 'outstripped industry forecasts' - affecting 'popular models' including the Nikon D80 and the Nikon D40.

In an interview with Amateur Photographer, he said this reflected a "huge resurgence" in DSLR photography and the positive state of the market.
Pointing out that Nikon UK supplied more DSLRs to the market than the year before Gilbert added: 'Capacity hasn't enabled us to deliver to the volume that is really required… There are more customers than there is product.'

Speaking in general terms Gilbert told us: "The DSLR market growth is currently tracking at 80% over the same period last year, exceeding industry forecasts. As a consequence, there has been some product shortage."

A shortage of top-selling models was believed to be a key factor behind lower than expected sales figures at high street chain Jessops over Christmas, where like-for-like sales fell 6.9% for the six weeks to 5 January 2007, compared to the same period the year before.

In a statement announcing its Christmas trading results Jessops said: 'While demand for digital SLR cameras remained strong over Christmas, disappointingly we were unable to satisfy all of this demand due to major worldwide supply shortages on the most popular digital SLR models from the two leading camera manufacturers.'

Jessops claimed: 'This compounded the like-for-like sales decline in the period and has impacted profits.'

A Jessops spokesman declined to discuss the extent of the digital SLR shortfall or tell us exactly which models affected its profits.
Canon launched the 400D last September, telling us that - in the following month - it was reported to be the second-best selling digital camera according to figures it received from market analyst GfK.

Jessops said its Christmas trading results were also affected by the market for digital compact cameras which, it reports, 'continues to be soft'.




Source: Infodigital camera