Canon 2004 Annual Report Download - page 24

Download and view the complete annual report

Please find page 24 of the 2004 Canon annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 86

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86

22
Canon is the world’s largest manufacturer of office
copying machines and multifunction machines. Even
though the business machine market has matured,
during 2004, we focused on attaining steady growth.
We aim to create new business domains while setting
market trends. One way we plan to do this is to acceler-
ate the shift to color printing in the office market by
aggressively launching advanced color equipment.
At the same time, we are paying close attention to
strategies for maintaining price stability and profitability.
In parallel with these marketing strategies, we are
working to upgrade our global supply chain management
(SCM) strategy. We are working to make a complete
shift to a weekly production/sales system that matches
actual demand from our sales companies and meets
schedules for delivery to customers.
In the United States, Canon retained its No. 1
positions in both the monochrome and color equipment
markets in terms of brand share. In Canada, mid-range
color equipment is taking off as well. Moreover,
in Latin America, demand for low-speed equipment
was strong, lifting sales to a record high in this area.
In Europe, sales were strong across the board, with
sales volume in the monochrome market showing
double-digit growth compared with 2003. Eastern
Europe, including Russia, showed particularly strong
demand, with growth exceeding 20%. Under these
conditions, Canon increased its market share and
strengthened its No. 1 position.
In Japan, building on the trend from the previous
year, the shift to color equipment accelerated, with
the proportion of the market accounted for by color
models rising from less than 30% in 2003 to attain
40% at the end of 2004.
The Asia/Oceania market remained strong,
registering double-digit growth. In the key Chinese
market, amid falling prices for low-speed copying
machines, we increased our market share through
sophisticated marketing activities.
Going forward, we plan to cultivate the print-on-
demand market by offering high-speed machines.
In addition, we plan to expand sales of our multifunction
machines, that is, Java-based MEAP (Multifunctional
Embedded Application Platform) products, in the
small-office/home office (SOHO) market and grow our
solutions business. Our solutions business comprises
mainly components from three fields: MEAP in the devices
field, the imageWARE series in the software field, and
e-Service in the Internet field.
Ikuo Soma
Chief Executive*
Office Imaging Products Operations
Color imageRUNNER C3200N
Although the office equipment market is
regarded as mature, Canon has achieved
steady growth by introducing new products,
improving its marketing channel policies,
and adopting effective strategies. These
activities made it possible for Canon to
report the highest level of profits to date
in the Office Imaging Products segment.
*Group Chief Executive in FY 2004.
CANON PRODUCT GROUPS
OFFICE IMAGING PRODUCTS