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The aim of this essay is to analyze the resources and capabilities of Canon
a company from Japan, then identifying if they have competitive advantage
or not. This essay focus on analyze the Resource Based View theory based on
the case of Canon. Generally, while doing this essay, it appears some difficult
as word count, knowledge, but hopefully it can be helpful for people who
work and care about this problem.
The resource based view (RBV) theory had been evaluated by a variety of
authors. Some of them said that RBV provides an explanation of competitive
heterogeneity that the important and corporate way in competitive is the
different from resources and capabilities of competitors (Helfat, C. E. and
Peteraf, M. A., 2003). However, in this essay, I focus on the RBV which
Barney had evaluated: firm resources include all assets, capabilities,
managing process, firm attributes, knowledge, etc. controlled by a firm and
to provide sustainable competitive advantages it need to be pass four tests
(V.R.I.N):
(Barney, 1991).
Canon was founded in 1933 with the first successful product is 35mm
camera, and then known as a worldwide camera and copiers company when
they moved into Copiers with New Process (NP) system. In the case of
Canon, I mention to two core competencies: Technology and Management
system.
Resources are the assets which are owned by the business. In Canon, they
are tangible resources: financial, modern equipment, land, manufacturing;
Intangible resources: lots of patents and copyrights, technical; Human
resources: famous reputation, task culture, great human skills/ know-how
with excellent expert in technology, marketing, management, etc.
Capabilities is what the business can do. For this case, Canons capabilities is
R&D section which is invested heavily, speed of new products always have
new product to serve customers need, product design, management
development, sales and distribution, customer services, etc.
Technology is rare because not many companies have the speed to launch
new products as fast as Canon. They recognize that the more exploiter new
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The second also the last one is Management system. Leadership style of
Mr. Kaku CEO of Canon is Democratic. He found three independent
business units in 1978: for camera, for office equipment and for Optical
Instruments and these three business units have been operated separately,
and the result is each manufacturing of Canon only produced one type of
product. Hence, the organization applied empowered strategy (C1050). It
means the workers are respected and have more power in the company. It is
also help the decision making process as fast as possible. Hence, the young
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The reason that it is rare is the company sale its products through business
units and Original equipment manufacturing (OEM) sell product under other
brand name. In the very first time they had just moved into Copiers, to sell
the copier in Japan, they found independence organize International Image
Industry and sold copiers as an OEM to Scott Paper under its own brand
name in US (C1042).
In conclusion, Canon has their own strong resources and capabilities which
help the organization develop and compete in the world-wide market.
Through the Resource Based View theory and V.R.I.N framework, Canon has
established a sustainable competitive advantage.
References
Helfat, C.E. and Peteraf, M.A. (2003) The dynamic resource-based view:
capability lifecycles. Strategic Management Journal [online]. 24 (10), pp.9971010.