The Canon Inc. was a company that produced imaging and optical products such as cameras, image scanners, film and computer printers. The Canon Inc. was a successful corporation in 20th century. It’s now one of the largest purveyors of digital imaging products. Canon Inc. has attained large global market share on the strength on its optical technology.
In 1933, Precision Optical Instruments Laboratory is founded in Tokyo to conduct research on camera’s quality. Canon Inc. originally named Seikigogaku Kenkysho, meaning Precision Optical Industry is founded in 1937. The company becomes Canon Camera Co., Inc. in 1947. The four founders of Precision Optical Industry, Co., Ltd were Takeshi Mitarai, Goro Yoshida, Saburo Uchida and Takeo Maeda.
When the company just started off, the four founders had no money to purchase necessary equipment, the made the first cameras with lenses from Nikon Corporation. Interestingly, both Nikon and Canon are rival in present time. The team made the first prototype of camera in 1934. The camera named Kwanon, Japan’s first 35mm focal plane shutter camera. After the birth of Kwanon, Hansa Canon was introduced into market in 1936. In short, Hansa Canon is the first Canon camera and start off the beginning history of Canon camera in the world. Furthermore, the engineers of Canon had made the first single lens reflex camera and placed onto the market in 1959.
Other than making cameras, Canon has been able to expand their business to produce whole new range of office equipment including photocopiers, computer printers and scanners. This business strategy is called diversification strategy which will provide increased growth and profitability. There is high risk of using the diversification strategy. This has causes many companies that attempt to diversify will lead to failure in the end. The risk of diversification is operation stress. For example, the company must have enough budget and human power to launch this strategy. Diversification also bring damage to brand. Diversifying into new areas may gain more profit, but at the same time, the society may lose their confident towards your brand. This can confuse your consumers and prove to society that you are no longer a leader in your area. When you give thought a diversification, you have to make sure enough information technology, human resource and conduct research on public thoughts about diversify into new areas.
Speaking of successful diversification example, Canon is one of the company. Canon diversification moves able to change their company name from “camera company” to Canon Inc. In late 1960s, Canon Inc. start his research on business machines such as printers, scanners, and calculators. Canon had become a Japanese multinational corporation when branch office opened in Europe and America.
When Canon Inc. success diversify into office equipment areas, a Canon electronics company was founded on May 20,1954. It’s headquarter in Chichibu, Japan. This company has few segments. Electronic Information Device segment develops, manufacture, and marketing electronics devices suchlike scanners and laser printers. The others segments will handle the software development, sales and Information Technology solutions.
“Over the 80 years since the birth of the Kwanon camera prototype, Canon has continuously innovated to fulfil the company’s never ending ambition to create the world’s finest camears,” said Masaya Maeda, Managing Director and Chief Executive, Image Communication Products Operations at Canon Inc. That must be the reason of success.