SWOT Analysis of Canon focuses on Strengths, weaknesses, opportunities, and threats. Strength and Weakness are the internal factors and Opportunities and Threats are the external factors that influence the SWOT Analysis of Canon.
Canon Corporation is a Japanese multinational company that specializes in the production and of printers, cameras, DSLR, Lenses, medical equipment, semiconductors, scanners, and photocopiers. Canon is moving internationally in order to lower prices and reduce exchange rate issues. Canon’s operating profit margin is increasing year by year. Let’s focus on the SWOT Analysis of Canon.
Strength in the SWOT Analysis of Canon – Canon SWOT Analysis
- GoodProductRange: Canon also developed a wide variety of products to meet individual and office needs. Canon produces printers, cameras, DSLR, Lenses, medical equipment, semiconductors, scanners, and photocopiers. Diversify the product portfolio helps canon to increase its profitability and mitigate risk.
- Production Units in Different Countries: Canon’s policy is based on large, scattered production activities. Canon has production plants in 18 countries. It helps them to boost efficiency and save capital. This increases productivity because of pace.
- Patents: Canon is known for its research and development. Canon has various patents for its technology. Canon is investing aggressively on Research and Development. Its Print Engine is used by most of the companies who are manufacturing printers, HP is one of them.
- Promotional Strategy: Canon enjoys successful Promotional strategies and advertising campaigns. This has aided Canon in encouraging a loyal consumer base.
- Brand Value: Canon has a brand value of $40 billion.
- Distribution Network: Canon is operating all over the world. Canon has 18 production plants. Canon has a wide network of stockists, distributors, and dealers. Its reach is good in Urban and Rural areas.
- Large Employee Base: Canon has an employee base of 197673 employees. Canon is investing in training its employees. At Canon working culture and work environment is good.
- Brand Image: Canon Photocopiers, Laser Printers, and Cameras are known for their quality. Canon has a very good brand image. Canon has a high brand recall as compare to its competitors.
Weakness in the SWOT Analysis of Canon – Canon SWOT Analysis
- Dependency on HP: HP constitutes approximately 18 percent of Canon’s revenue. Generally, this term does have a foundation in canon. Termination of this contract would be counterproductive to Canon.
- Issues in Products: Issues in product consistency can impact the company’s reputation and confidence.
- Popularity of Some Products: Canon is mainly recognized through imaging devices only but its other products including projectors are not so well established. Canon has to create awareness of its products.
Opportunities in the SWOT Analysis of Canon – Canon SWOT Analysis
- Development of Consumer Electronic Market: There will be development in the Universal Consumer Electronics industry. Consumer electronics demand is increasing day by day. It is largely powered by developing market economies with increased household income levels. Canon cap tap this opportunity.
- Development of Digital Printing: The digital printing industry is estimated to grow by 300 billion US Dollars in 2021. Also, Intank inkjet is going to control this business category. This indicates a more promising outlook for Canon.
- Medical Devices: The development of the medical devices business is massive and leading to the growth of the company’s strategies in the medical device industry. This would help the company in growing its product line and sector.
- New Trends: The new trends in consumer behavior will open up new markets for Canon. This has given a great opportunity for the organization to expand revenue streams and to diversify into new product categories.
Threats in the SWOT Analysis of Canon – Canon SWOT Analysis
- Camera Demand: Canon is being threatened by the shrinking camera demand. The Photography industry has been influenced by the evolution of smartphone cameras as well as the decrease in sales of Canon’s cameras.
- Medical Devices: Medical devices sector is subject to numerous legislation in different countries. This might impact the profitability of the company.
- Developments in Technology: The business must be agile in coping with the rapid developments in technology. This includes substantial spending on research and development by Canon.
- Intense Competition: Competition is so high that each of the brands must defend its core strength and attack the other weaknesses. Canon is also facing tough competition from companies like Epson, Brother, and Sony.
- Changing Prices: Changing Prices by competitors can be a major threat to the company.
- Government Rules and Regulations: Government rules and regulations can be a major threat and can directly or indirectly affect the business of Canon.
- Raw Material Prices: Rising raw material prices can be a threat to Canon’s profitability.
- Imported Products: Increases in minimum wages and prices of imported products in China could spell a serious threat for Canon.
- Macro-Economic Factors: Because of the volatile world financial markets, Canon is exposed to volatile international macro-economic indicators.
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