Canon Inc. is a Japan based multinational corporation which specializes in manufacturing of the optical and imaging products. This includes manufacturing of camcorders, cameras, TV broadcasting, professional displays, film equipment, photocopier, projectors, photolithography equipment, computer printers, binoculars, image scanners, medical equipment, microscopes, OLED panel, LCD, and many other equipment.
It has around 383 subsidiaries which includes second-generation subsidiaries also like Canon IT solution Inc. The company is listed in Tokyo stock exchange and New York Stock exchange (Canon, 2020).
VRIO framework is an analytical tool which is used by the companies for analyzing the resources and capabilities. These resources help the company in achieving competitive advantage to the business, which are used for exploiting the benefits and opportunities in the market. Here is the detailed VRIO analysis of Canon.
Value
Assessing the valuable resources and capabilities is the first component of the model. This helps in identifying the valuable resources of the company that can add more value in the business operations. They also help in utilization of the capabilities to avail more opportunities and strengthening the company’s position. Canon is one of a leading company and have global presence.
The company’s global presence is the valuable resource. Moreover, its marketing techniques are creative and very attractive, which attracts consumers. Canon provides one of the best technological equipment, which are easy to handle and consumer friendly. The company’s quality control is one of a valuable capability (Linh, 2017).
Rarity
Identifying the resources and capabilities which are rare and not easily available in the industry is the second component of the model. This deals with rarer the resource will be more chances will be there to achieve the competitive advantage. The company along with valuable and rare resources mitigate the threats and risks. Canon diverse portfolio is a rare resource, as not many companies can be able to offer such a broad range of qualitative products.
Moreover, Canon works hard in introducing new and advance technological products before anyone else in the market. This gives it edge over others. The company is also handling subsidiaries which is against rare, as this a lot to manage effectively (Case study, 2020).
Imitability
Imitability is the third component of the VRIO framework, which deals in making the resources and capabilities difficult to duplicate. This could be either by possessing costly resources or resources whose substitutes are not available. This helps the company in achieving competitive advantage along with other components. Canon has made its resources difficult to imitate.
Its R&D department continuously look forward for unique techniques and features, which give it edge over others. Moreover, Canon has discrete its production from imitating, as company look forward for low cost production by integrating backward. This is an efficient strategy which Canon is retaining up till now (Linh, 2017).
Organization
This is the fourth component, which along with other three components help the company in achieving sustained competitive advantage. Canon operates low-cost ad high quality manufacturing facilities. It organized and managed every operation critically and very well. The philosophy of Canon in empowering the workers is strong.
The company believes in building cost and trains its employees. Canon achieve this component by combining the motivation programs and empowerment policy. This helps the company in exploiting the potential of human resources to full extent. It also laid emphasis on the trading partners (Case study, 2020).
Conclusion
Canon is a big name in the industry and to retain its position, it is necessary to achieve the competitive advantage for long term. Canon has set high standards of technology with its high standard and qualitative products. The company is managing its resources and capabilities very efficiently.
| V | R | I | O | ||
| Technology | ✓ | ✓ | ✓ | ✓ | Competitive advantage |
| Brand Equity | ✓ | ✓ | ✓ | ✓ | Sustainable competitive advantage |
| Marketing | ✓ | ✓ | ✓ | ✓ | Sustainable advantage |
| Product quality | ✓ | ✓ | ✓ | ✓ | Sustainable competitive advantage |
| Product range | ✓ | ✓ | ✓ | ✓ | Sustainable competitive advantage |
| Talented HR | ✓ | ✓ | ✓ | Competitive parity |
References
- Canon, 2020. About us. [Online], Available at: https://www.usa.canon.com/internet/portal/us/home/about/about-canon, [Accessed on: 1st April, 2020].
- Case study, 2020. Canon strategic analysis case study. [Online], Available at: https://acasestudy.com/canon-strategic-analysis-case-study-resource-based-view/, [Accessed on: 1st April, 2020].
- Linh, 2017. Canon case study. [Online], Available at: https://www.studocu.com/en-gb/document/university-of-the-west-of-england/strategic-management-accounting-economics-and-finance/past-exams/exam-note-canon-cases-study/1290911/view, [Accessed on: 1st April, 2020].