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Canon’s Strategy of a MarketDominating due to Cooperating with an Established Firm Rather than Competing with It

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Canon Inc. is a Japan-based Multinational Company which currently leads markets for compact digital cameras and personal use printers. Kirk W. M. Tyson (1997) viewed that Canon’s business development strategy is a blueprint for successful management activities. This explains how Canon could easily access a strong market and establish its marketing niche (p. 186). Canon was different from Japanese companies as they rarely develop strategies, but Canon put forward an excellent example of developing a cooperative strategy and establishing a market niche. Richard Lynch (2006) emphasizes that Canon had operated strategic planning since 1957, however it was flexible and a free-flowing perspective. (Richard Lynch, p. 499)Canon has proved to be ‘No 1’ in Total Copier market, total placements in the monochrome market, A 3 color copier and all segments of monochrome markets. It has achieved this long term objective of becoming ‘No 1’ in copier market share through continuous restructurings and effective cooperative strategic plans.According to Richard Lynch (2006), Canon had a strong desire to beat Xerox and thus it achieved a growth of ¥ 3,468 billion in 2004 from ¥4.2 in 1950 (p.499). When Xerox concentrated on large and corporate customers who lease large machines from them, Canon thought of a new marketing strategy by designing smaller machines for individual and office use customers.Analysis of Canon’s Cooperative strategy
For many years, Xerox Corporation dominated the US copier market with its strategy of emphasizing fast machines to the corporate large buyers. In 1975, Canon identified the way to enter the US photocopier market. Willie Pietersen (2002) finds out the way that Canon developed its strategic vision in order to enter the US market. “Deciding not to go head – to – head with Xerox on its home turf, Canon emphasized the price and quality of its machines and sold mostly to individual consumers or small businesses through a business channel.