Canon: Competing on the capabilities
Learning Purpose and Objectives
Overall, studying the case of Canon can: Revisit the key concepts you have learnt earlier; Integrate those ideas into a comprehensive framework that would show how they relate to and complement one another instead of being contradictory and mutually inconsistent. Help clarify how these concepts can be translated into effective strategic action.
Evolving and Broadening of Concept of Strategy
Michael Porter’s Competitive Strategy represented a major breakthrough and this IO-based framework provided the main lens through which the issues and challenges of strategy were viewed. In the late 1980’s, Grey Hamel ...view middle of the document...
It anchored that business in its basic management discipline of quality manufacturing and value engineering, a set of competencies in technologies – primarily optics technology – and in developing and managing dealer networks. Then, through the evolution of camera business and through dedicated research efforts, Canon built a strong competence in the area of micro-electronics. Given these resources and competencies, Canon decided to enter the photocopier business. it reconfigured the business so as to be able to leverage the resources and capabilities it had. The photocopier business, in turn, allowed Canon to build new up-stream and down-stream competencies-in new materials technology .
Two inter-linked tasks of the strategy
To continuously find ways to leverage one’s existing resources and competencies to create and pursue business opportunities, and to continuously use existing business and operations to built new competencies and strengthen existing one’s. In essence, it is a strategy of perpetual motion.
Figure 2: Building and Leveraging Competences
Management Disciplines Technological Competences Application Areas Quality/ Value Engineering
MicroElectronics Cameras Copiers
New Materials Office Equipment Mass Merchandis ers/dealers ProfOptics
Own sales Organization Cannon Brand Name
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Question III: Where did the competitive strategy come from? Describe the competency-building process
One step beneath the visible competition for markets, and supporting company’s posture in that competition, lies its strategic architecture A company’s competitive strategy must grounded in that architecture (Prahalad and Hamel, 1991), and its day-to-day activities in pursuance of that strategy provide a means for continuously enhancing and broadening the assets and resources, competencies , etc. This is the second stage of competition –the competition for competencies At the very base of that iceberg lies the vision, the ambition, the...