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CANON CASE 1Relate Canons introduction of copiers to Europe with companies usual internationalization process Pattern of internationalization can be measured along five scales -Degree of similarity first only in home-market Japan as the internationalization process continued they started to go to other less familiar markets -Number of countries first only in Japan later in Europe 1957 and the US 1955 -Operationshandling ooriginally copiers only sold in Japan othan exporting copiers to Europe olater international by selling through dealer network in Europe and the US distributors initially independent and free which product they wanted to sell o1972 takeover of Giessen FDI oin 1975 replacing distributors with integrated Canon marketing subsidiaries ological step as company becomes more internationally committed internal handling of foreign operations o1982 second plant in Liffre 2Explain any differences and similarities you observed in question 1 -Approach Canon used was quite similar to the usual internationalization pattern -Canon did not engage in mergers and licensing -Reason mergers and licensing eg means loss of control and knowledge 3Use the Porter Diamond to evaluate the conditions for the new facility in Giessen -Demand conditions oStart production near observed market oTill 1972 Canon did not sell copiers in Europe but attractive market with high market potential and established distributor network was already established oTrue especially for EC countries thus logical choice to set up production facility there ie Giessen -Factor conditions oMost production factors available at facility in Giessen oSkilled labour required knowledge and experience available in aimed facility oGermany is highly industrialized capital technology equipment as production factors should be available -Related and supporting industry oCanon contracted 80 suppliers locally to provide services and parts oImplies that there was considerable supporting industry present at location oCanon already had headquarter in neighbouring EC country Amsterdam The Netherlands since 1968 oIn larger context Canon had already an established distributor network in EC countries -Firm strategy structure and rivalry oStrategy of Canon to
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