Canon has ended the days of cheap printers and cameras. Its CEO announced recently that the company’s 14-year mission was completed to transform the business into an industry with high-value added.
Fujio Mitarai (CEO and Chairman of Canon) stated, “We have changed an industry that used to produce cheap cameras and printers.”
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After Canon’s better financial results, he noticed that Canon had plans to bring its main manufacturing plant back to Japan.
Tokyo Keizai Online: He stated that “the company has never manufactured high-end SLR camera overseas.” (Opens in a new tab (machine translated). “Domestic production has been streamlined and automated. In China, a factory producing low-end cameras was closed.
Mitarai explained that his “foreign exchange” policy combines two key factors. First, the depreciating Japanese yen makes it more advantageous to export products from Japan. This is especially true for high-added value products.
Also, the pursuit of low-value products based on overseas production will leave the company vulnerable to fluctuations in exchange rates. This is why it is important to centralize and streamline production in Japan.
These changes have also been triggered by declines in core businesses that Canon specializes in.
“The IT revolution (since 2000s) and the invention of smartphones saw the end of cheap cameras. Canon’s sales have dropped by a third. Despite being the market leader, Canon’s sales have been steadily falling. This was my first experience. This was my first experience in the cloud.
“Based on our experience, we decided to change the business structure. We felt that the major trend must be changed. We have made a difference in the industry that was once known for making cheap printers and cameras.
This is a fascinating picture of Canon’s future. There will always be entry-level printers and cameras. However, there is no doubt that the company is shifting resources toward the big ticket items – rather than cutting costs by making cheaper products in countries with cheaper labor.
We recommend that you read the entire interview (for which, you will need to create an account), as it covers everything from Canon’s investment into surveillance cameras to Canon’s heritage as a company which has lifetime employees (with a culture in which all executives start work at 6:50 AM).).
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