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Continuously Innovative Canon

From 1937 to 1997, Canon has been around for 60 years. Canon is now one of the fastest-growing companies in the world, ranked by Happiness magazine as one of the five largest companies in the world. Available figures show that in 1996, Canon's sales totaled $2,205,368,000, profits were $881,870,000, and total assets amounted to $2,257,153,000. Canon now consists of six strong and balanced core business groups: imaging office equipment, peripherals, bubble inkjet products, cameras, chemicals and optical products. On the one hand technology has played the most important role in Canon's development over the past 60 years. From cameras to office equipment to teaching equipment, Canon has constantly emphasized innovation, always striving to introduce new ideas to the market and to provide higher quality and more convenient products. On the other hand, Canon has its unique corporate motto of "****Birth" for its splendor today.

When looking back at the 60 years since the establishment of Canon, Mr. Mitarai, the president of Canon Inc. divided it into two 30-year periods. Founded in August 1937, Canon began as a manufacturer of high-quality cameras. The first 30 years were a period of technological breakthroughs and enhanced globalization, but this has already brought the world's attention to Canon Inc. and given Canon a wonderful reputation for product quality and technological innovation.

Canon's second 30 years began in 1967, when Fusi Mitarai declared that Canon would become a "two-handed" company, "cameras in the right hand and office equipment in the left." With this declaration, subsequent presidents successfully introduced Canon's second basic strategy: diversification. Over the next 30 years, as Canon diversified its business approach, it developed new technologies in the fields of office equipment, electronics, magnetic recording, electronic instruments, and raw materials. And as the range of products continues to expand, Canon's strong business network around the world has enabled the company to expand its customer base to include offices, industry and even consumers. In addition, Canon has accelerated its globalization strategy since it opened its first overseas office in the United States in 1955. In the 1970s, Canon expanded its worldwide sales network, then completed the globalization of the company's manufacturing regions in the 1980s and established research and development facilities in Europe, the Americas and Australia in the 1990s.

The fundamental reason for Canon's extraordinary growth is its own approach to development, which is "****bio". The philosophy of "****san" was formally put forward in 1988 by Mr. Ryuzaburo Korai, Canon's long-time chairman, in the face of the challenges of globalization. The goal of "****san" is to work and live together for the benefit of the general public, to promote mutual understanding and harmony between people, between people and society, and between people and nature, and to enable each and every individual on the planet to enjoy the gifts of the earth. From this perspective, only those companies that assume full social responsibility in their respective fields can be considered global. Such companies do their best to promote mutual respect between nations and peoples, and at the same time, make people everywhere aware of the need to protect the environment.

It is out of the concept of "****sanity" that Canon has become a pioneer in the world of manufacturing in terms of ecological protection. Canon has gradually increased the copier remanufacturing and cartridge recycling program, by March 1997, Canon has recycled 20 million old cartridges. Plants in the U.S. and Dalian, China, will launch cartridge recycling operations this year. The environmental management systems of Canon's more than 20 factories around the world have also long won international recognition, earning the ISO l400l international environmental certification. In addition, last year Canon launched solar panels and conducted the first trial of biological soil modification. Based on the concept of "****Birth", Canon has localized its management and employees in its subsidiaries around the world. Today, many non-Japanese employees hold senior management positions in Canon companies around the world. Soon, there will also be non-Japanese directors on the boards of Canon Inc. In China, Canon Inc*** has invested in nine companies for localized production of Canon products. Of all the 7,441 Canon employees in China at present, only 94 are from Japan. In the future, this proportion will decline.

It is out of the concept of "*** birth" that Canon has also achieved remarkable results in the Chinese market. In the Chinese market, from 1993 to 1997, Canon products from scratch, to become the dominant inkjet printer market in China for several consecutive years, during which both the "Happy Printing" concept, or "Hotline Center" and "Maintenance Center". "Maintenance Center", whether it is a counter in the mall, or technology tours, all glittering with "*** raw" wisdom and brilliance. One wonders what will happen in Canon's second 60 years, or third 30 years.

"GO", a commemorative logo designed by Canon to celebrate its 60th anniversary, is, in fact, an excellent answer to this question. "GO" stands not only for the past 60 years, but also for "Go for it", a slogan that is exactly what Canon will be doing for the next 60 years. "As the beginning of the third era," said Mikado, "Canon is striving to become a leader in the multimedia field. During this period, we will diversify our activities in the semiconductor industry and develop new environmental and medical equipment businesses".

Canon's future global goal is to be ranked in the top 10 of the world's largest industrial companies, as ranked by Happiness magazine. Says Mikado, "This means competing with the biggest and best companies in the world. If we keep a firm grip on this goal and keep moving toward a diversification and globalization strategy, I believe our goal will go from ideal to reality within 30 years."

It is well known that Japan's phenomenal economic success in the post-war era was due not to the acquisition of land, but to the acquisition and application of modern technology. The most important technology, in recent decades, has been information technology. It is also the strong competition and high priority given to the world market for information technology that has enabled Japan to occupy a dominant position in household appliances, office equipment and production equipment. In particular, the office equipment industry is one of the largest groups of competitive industries in modern Japan, and in a recent ranking of the world's largest computing technology companies, including office equipment companies, Canon Japan became the sixth highest-earning computer and office equipment company in the world. This achievement is a further indication of Canon's leadership in information technology. It is reported that Canon always allocates 10% of annual sales at its headquarters to the development of original technology. between 1991 and 1995, Canon was in the top five of the top ten companies in terms of number of U.S. patent registrations, and was neck and neck with IBM. Technology has played perhaps the most important role in Canon's development over the past 60 years. From cameras to office equipment to digital devices, Canon has always innovated.

Fax machine sales were doubling every year in Europe in the mid-1980s, and in the U.S. they jumped from 56,000 in 1981 to 206,000 in 1986, 465,000 in 1987, and about 800,000 in 1988. more than a million fax machines changed hands in the U.S. in 1989, bringing the installed base to 3.4 million. For this reason, Happiness magazine has asserted that "the introduction of the fax machine is the most significant event since the introduction of the personal computer". Today, the industry is completely monopolized by Japanese companies. Japanese companies have won a great victory in the fax machine market, first of all, because they already have high technology related to the industry to which they belong, in which Canon's camera industry and office equipment industry played a certain role. Canon was the first company in the world to introduce a digital full-color plain paper copier. The level of color copying provided by these copiers is indistinguishable from the printed original due to the use of large-diameter photoreceptor drums and microscopic laser dots; its digital copiers use electronic principles to scan the document and display the image on the drum with a laser beam, resulting in very advanced image processing capabilities.

Canon's leadership in information technology is also centered on its inkjet/laser printer technology. Canon has been at the forefront of inkjet printer technology since 1987, when it first invented the successful bubble inkjet printer. Its "high-speed, quiet, high-quality, full-color" products have been well received in both the global and Chinese markets. To date, Canon has produced more than 10 million BJ series inkjet printers. The most representative of Canon's inkjet technology is "photo printing". This printing technology emphasizes the printer's special ability to process photos. Canon's photo printing realizes a gradual display between multiple layers of color, making the print effect very delicate, very photo quality, and Photo Print also inherited Canon's multi-media printing function.

Canon's brilliance in inkjet technology may have somewhat "overshadowed" the achievements of its laser printer technology. In fact, the world's first laser printer was a Canon laser printer, in case people didn't know.

In recent years, due to the rapid development of electronics, computers and other technologies, photographic technology is also brewing a digital revolution. According to the survey, in 1997, digital camera sales of 2 million units, computer sales of 25 million units, digital photographic technology is rapidly becoming a mainstream technology. For this reason, as a pioneer in the field of image technology, Canon lost no time in launching its own digital camera. The launch of the digital camera, so that Canon's photography and inkjet printing of the two technical strengths of the pearl, for users to provide a happy, perfect solution.

Canon R&D operates a product division management system. Project Ladder is not only used in new product development, but the method is used to address many areas of management throughout Canon. The close integration of the operational and management activities comprising the project ladder, the realization of the company's operational efficiency and the effectiveness of innovation at the same time, and the close cooperation between the functional departments and the divisions play an important role in improving Canon's ability to innovate.

Since its founding, the company has emphasized a tradition of respect for the individual and has made every effort to recognize and reward individual merit. In order to cultivate individual enthusiasm, cohesion and creativity, at every level of the organization, the company endeavors to create a stimulating work environment. Canon's policy toward researchers can be summarized in the following three points: self-motivation, self-awareness, and self-trust. It is emphasized that researchers should be aware of their responsibility for the basic goals of the company. Self-awareness, an enthusiastic mindset, and responsible behavior, which Canon people firmly believe in, are the keys to achieving good results. Six eye-catching Chinese characters: "Self-improvement, Self-confidence, Self-reliance" are hung at the main entrances of Canon Research Center.

There is a passage in Canon's goals that reads, "We will create the best products with leading-edge technology, and we have that responsibility and obligation. To achieve this goal, we will unite our efforts with an aggressive attitude in the areas of R&D, product planning and marketing." This mindset permeates the company's divisions, with R&D (research and development), permeating Canon's overall strategic thinking and becoming central to Canon's behavior and management model. The medium-term management plan for each of its product divisions is formulated by the development center of the company's product division, and then this three-year product development plan is submitted to the International Symposium on Product Strategy, which is held in the fall of each year. Canon R&D people believe their work is critical to Canon's growth.

Kodak - for everyone

Mini-file

In 1886, George? In 1886, George Eastman developed the first automatic camera, named it "Kodak", and the Kodak Company was born.

In 1930, Kodak accounted for 75% of the world market share of photographic equipment, profits accounted for 90% of this market;

In 1964, the immediate automatic camera on the market, sold 7.5 million that year, the world's highest record of camera sales;

In 1966, overseas sales of 2.15 billion U.S. dollars, ranked 34th in Fortune magazine, net profit ranked 10th. In 1966, overseas sales amounted to $2.15 billion, ranking 34th in Fortune magazine, with net profit ranking 10th, and sales of Agfa, which was the second largest in the photographic industry at that time, were only l/6 of its sales;

In 1990 and 1996, Agfa ranked 4th among the top 10 brands ranked by Brand Consultants, and was a deserved dominant player in the photographic industry.

First, the product: "everyone will use"

In 1877, the camera has been invented, but the photographic equipment at that time was extremely complicated, including a large black tent, a water tank, a container with a thick glass photographic plate ... ...Traveling with it was like taking a laboratory with you, and you had to hire a single horse to carry it. That's not so simple, the complexity is the operation, no one can handle this behemoth without specialized knowledge and skills.

Kodak founder George? Eastman, the first contact with the camera, can not help but think: the camera can not be made smaller? Can the art of photography be made as "simple as writing with a pencil"? These great questions, coupled with Eastman's relentless pursuit finally brought an epochal revolution in the photographic industry. 1886, small, lightweight, "everyone can use" camera was born, Eastman for it a small letter, but read the name: "Kodak". 1888, Kodak, the first camera in the world, the first camera in the world. "In 1888, Kodak ran its first advertisement, showing a hand holding a Kodak camera next to Eastman's confident and proud promise: "You press the button and I'll do the rest." Kodak went public and was an instant success.

From then on, the idea of "everyone can use it" has been carried out throughout Kodak's business history, and how to make it easier for consumers to use the camera has always been the goal of Kodak, and in 1964, after 10 years of research, Kodak introduced an "instant automatic" camera, which is simpler, lighter and easier to carry; it is easy to operate and does not require a measurement. This camera model is simpler and lighter, easy to carry; easy to operate, no need to measure the distance to the light, you can get a clear picture: film loading and unloading convenient and safe. The camera, which could be used by young and old alike, sold 7.5 million units in its first year on the market, making it the world's highest-selling camera. In the same year, when "Immediate Automatic" was selling well, Kodak realized that the electronic flash equipment was not complete enough, and that a bulb had to be changed every time a picture was taken, so in 1965 it introduced an easy-to-use square four-flash magnesium device. 1970, Kodak further introduced the "Novelty X Series Flash" to make up for the shortcomings of the square four-flash magnesium, which could not be separated from the batteries. "In 1973, the ultra-compact box Kodak camera was born, this camera is convenient to put in a pocket or handbag, and the photos taken by the picture is clear. Only three months after the launch of this camera in the United States sold more than 1 million units, the world sold 10 million units; in Taiwan, Kodak camera family penetration rate soared to 40%. In Taiwan, the household penetration rate of Kodak cameras soared to 40%. People called it the "idiot camera" with their own eyes.

Second, pricing: "sacrifice hit" strategy

Kodak pricing in the use of a unique "sacrifice hit" strategy, has achieved great success. The so-called "sacrifice hit", that is, a product as a pioneer in the expansion of the market, with high quality and low prices in the market after a firm foothold, by expanding the sales of related products to make up for the loss caused by the decline in the price of the pioneer products.

In 1964, Kodak launched the "immediate automatic" camera, pricing is quite low, the lowest $ 13, 8 models, half of the $ 50 or less. More surprisingly: in the Kodak camera is very popular, sales skyrocketed at the time, Kodak announced: "Kodak camera, everyone can copy." Kodak made the results of 10 years of research available to the public, and the generalship was puzzling. However, people soon understood and were impressed by Kodak's shrewdness. The original, Kodak has long considered that with the increase in camera sales, film printing services will certainly have a large demand. So in the scramble to produce "immediate automatic" cameras, Kodak has focused its production capacity on the production of film and printing. As a result, Kodak's film sales skyrocketed, and Kodak almost monopolized the printing market. "Mini" camera on the market, Kodak and the same method, lower prices, so that "everyone can afford", the results of Kodak's film, cameras and related equipment sales rocketed, although Agfa struggled to make the old method of intensive supply, Fuji, Sakura does not borrow the blood of the price cuts, but always can not beat the sales volume of Kodak film.

Third, the brand: the name is worth dry gold

Kodak's success is inseparable from its strong brand "Kodak". The day the Kodak camera was born, Eastman chose this name. He thought that "K" was a lucky letter and, more importantly, that it sounded the same in any country in the world. Today, "Kodak" with its yellow-on-red logo has become a household name around the world, which, in addition to proving Eastman's judgment, is inseparable from Kodak's ongoing efforts to build brand loyalty.

One of Kodak's efforts to build brand loyalty is often organized or sponsored a number of photography contests or cultural and sports activities. 1897, Kodak held an amateur photography contest, the participants reached 25,000 people. 1904, Kodak launched a travel Kodak photography exhibition, 41 photographs on display. 192O, Kodak in the United States on both sides of the highway, the scenic spots erected a "ahead of the red lettering" logo. In 192O, Kodak erected in the United States on both sides of the highway in many scenic spots, written "in front of the scenery" road signs to remind people to drive safe. 1984 Los Angeles Olympic Games, Kodak has been monopolized by the world's sports competitions in the exclusive right to sell film.

Another way Kodak built brand loyalty was by creating a clear and powerful brand identity. Kodak's brand identity can be summarized in two words: simple (mainly for product features), family (mainly through marketing communications and visual images to spread). the early 20th century, Kodak introduced two important characters to represent the product, namely the boy Brownie (Brownie) and the girl Kodak (Kodak). The two characters not only represented the product as easy to operate (since even children could operate it), but also associated with children and families. Kodak's early advertisements showed family scenes with children, dogs, and friends, and most of them were easy-to-film footage of what was happening around us. in the 1930's, people could often listen to the "Kodak Hour" special on the radio, which depicted a collection of family photographs. in 1967, Kodak won an award for one of its advertisements. The ad featured a couple in their 60's who were organizing their attic and found old photos of them in their 20's, when they were in their youth, when they were married, on their honeymoon, when they had their first child, and when they attended their son's graduation ceremony. At the end, it's the woman, a grandmother to be exact, taking a picture of her newborn grandson with an instant automatic camera. It is by publicizing this unforgettable moment that Kodak strikes a chord with consumers. "This is a Kodak moment, don't let it slip away", "Kodak strings together every moment", in a scene of moving images, these advertising slogans deep into the minds of consumers, so that consumers naturally enjoy the happy time and the name "Kodak" associated with the The slogan is y embedded in the minds of consumers, so that they naturally associate happy times with the name "Kodak.

Consumer loyalty to Kodak also comes from the fact that Kodak faced adversity and still put the interests of consumers first. For example, in 1964, Kodak launched the "immediate automatic" camera in the market only one year after the occupation of the automatic camera market share of 1 / 3, but the Polaroid company has a step ahead of the patent and warned Kodak to withdraw from the market. The blow to Kodak was undoubtedly a heavy one, but Kodak did not forget the interests of consumers while suffering the loss. It announced: invite consumers to return immediately automatic camera, each return a can be exchanged for a Kodak CD-ROM camera and film, or the value of 50 dollars of a piece of other Kodak products, or a Kodak stock. Kodak used this method, in the marketing of CD-ROM camera at the same time, strengthened the link with consumers, consolidated the loyalty of consumers to Kodak.

Fourth, competition: at any cost

From the 1950s, Fuji, Sakura, Agfa and other brands have risen, and constantly launched a fierce attack on Kodak. In the face of these attacks, Kodak does not take all the cost of counter-attacks, so that the dominant throne will not be taken away.

Fuji has been Kodak's strongest rival. On the eve of the 23rd Los Angeles Olympic Games, just as Kodak and the Olympic Committee preparers for the sponsorship fee bargaining, Fuji took the initiative to actively apply for sponsorship, and even raise the sponsorship fee from $ 4 million to $ 7 million, making the Olympic Games, Fuji made a big splash, a surge in sales, to Kodak to hit hard. In addition, in the Chinese market, Japan and the first step to adapt to Chinese culture, in the film package printed on the Chinese description and the Temple of Heaven, Beijing's famous sights, which is more than the packaging of all the English Kodak film to impress Chinese consumers. These activities once made Kodak always slow Fuji half a beat, in a passive and unfavorable situation.

Faced with competition, Kodak's approach is one of: an eye for an eye, a tooth for a tooth. Los Angeles Olympic setbacks, Kodak decided to treat its own people the same way, into the other side of the tiger's den to fight. 1984 August, Kodak planning director Mr. Siegel flew to Tokyo, to study how to take pictures of this piece of "Photo Lux" and Fuji for supremacy. At that time, Japan's photographic film and photo paper market size of up to 2.2 billion U.S. dollars, while Kodak only 10%. The crux of the matter is that Kodak has been doing business in Japan for four years, but there is no long-term business plan. The company has no direct sales network in Japan, no production location, no resident manager, 25 staff in Tokyo, completely dependent on distributors around the world. After careful planning, Seger went on the offensive, and in 1984 Kodak spent $500 million to build a headquarters in Tokyo, establish a research and development lab near Nagoya, and expand its Japanese workforce from 12 to 4,500 employees. As a result, Kodak's sales in Japan expanded sixfold in six years, reaching $1.3 billion in 1990. At the same time, Fuji's domestic sales in Japan began to decline to the point that Fuji had to withdraw a portion of its best people abroad to Tokyo in order to fend off Kodak's attack. Kodak's success in Japan is entirely dependent on breaking the American concept of distribution and distribution model, so that Kodak in Japan to become the same as Fuji's "Japanese company", rather than a foreign company in Japan.

Another way for Kodak to succeed is to learn from its rivals. In Kodak's general manager of manufacturing William F. Fobul office, hanging a snow-covered majestic large photo of Mount Fuji. It's a constant reminder of the competition," says Foble. In Kodak's labs, researchers methodically analyze Fuji film. One researcher says, "It's called 'copycatting,' where we do what Fuji does to improve. We were obsessed with Fuji." Over the years, Fuji sold film in bright colors, Kodak's researchers initially thought it was distorted, but they soon found that customers liked Fuji film, so Kodak launched the "VR-G" series of film, which has the same bright colors as Fuji film.

In addition, advertising was also an important tool for Kodak to compete. Kodak invested a lot of money in advertising in order to compete with Fujitsu. While Fuji was ready to invest a lot of money to promote overseas sales, Kodak invested three times as much money as Fuji for advertising in Japan. Kodak did not spare any money in setting up giant road signs in many major cities in Japan, which were the highest in Japan at the time, worth one million dollars. Not only that, Kodak also sponsored the Japanese delegation to the 1988 Seoul Olympics to avenge the 1984 Los Angeles disgrace. At the same time, Kodak also paid $8 million early to be allowed to use the Olympic five rings logo, to repel Fuji to India, mainland China and Taiwan, these rapidly expanding markets. In order to completely defeat Fuji, Kodak spent 10O million dollars to buy a special blimp, decorated with eye-catching Kodak logo, flying over the Japanese city for 3 years, but also particularly provocative like the Fuji headquarters in Tokyo circling back and forth, resulting in Japan's public opinion have accused Fuji of losing the face of the Japanese people. In order to restore the impact, Fuji had to pay two times the cost of Kodak, specifically from Europe to transfer back to the Fuji blimp, in the sky above Tokyo for two months of flight.

V. The Future: Meeting the Challenges

The fast-changing market and rapidly evolving technology make every business face challenges, and Kodak is no exception.

First, there is the intense price competition from the market sector. Self-labeling (or retailer branding) will be the price of Kodak products lowered by 4O%, Fujifilm is also in price competition with Kodak, plans to build a new $250 million production of photographic paper in the United States in South Carolina, the construction of the plant will be already oversupplied with photographic paper even more flooded. In Eastern Europe and developing markets, cheap film also caused a great threat to Kodak, because low-income levels of people pay more attention to price rather than brand and quality. In response to this price war, Kodak after market segmentation, to different parts of the market launched a different brand, quality and price of film: "Royal Gold" (Noble Gold film), specializing in the supply of some particularly significant occasions and activities, high quality and high price; "Cold Plus "(Super Gold film), is a daily use of ordinary film, medium quality and price;" Fun Time "(Happy Moments), is a low-priced film, located in the more sensitive to the price, love bargaining consumers. Kodak this price counterattack strategy to a certain extent played a role, but still can not completely remove the bad effects of the price war.

Another challenge Kodak faces comes from the impact of digital imaging technology on traditional imaging technology. Under traditional photography technology, the image is captured by the camera, saved on the negative, and finally printed on photographic paper, this process from George? Eastman founded the Kodak Company and has remained unchanged for more than 100 years. But the shortcomings of the traditional photographic technology is also quite obvious: high cost, bulky equipment, serious pollution is the production of film and paper and printing process is difficult to solve the problem, the volume is large, can not be permanently preserved, to find the difficulty of the use of film and paper to the people's inconvenience. With the emergence of digital imaging technology, photography to say goodbye to the film and paper becomes possible. The new digital camera can be photographed object of the optical signal into a digital signal and directly stored in the CD-ROM. A palm-sized CD-ROM can store hundreds of millions of bits of information, using it instead of the negative can store thousands of photos; and then, through the computer printer can directly print out the photo ...... In short, digital imaging to completely replace the day of the negative and photo paper is just around the corner. As the leading photographic technology, Kodak is of course not to borrow huge sums of money to research and develop this new field of technology, but the popularity of digital imaging technology means that the camera will be faster and more convenient at the same time, but also means that Kodak will be lost film, photo paper to bring the rich profits. How to not affect the existing traditional technology of abundant profits at the same time, actively become a new technology promoter and leader, as well as how to adapt to the new technology products, set up a new brand image, are Kodak need to urgently solve the problem. Can Kodak add to the countless glorious moments strung together in these more than 100 years?

Enterprise management is more practical `should be in the continuous learning and practice to experience and summarize the progress `can have a big harvest `hope you can help`

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