Canon 2009 Annual Report Download - page 59

57
LOOKING FORWARD
Although the global economy has generally entered a recovery
trend, there are still various risk factors such as weakened
effects of stimulus measures in various countries, worsening
employment conditions and consequent weakness in consumer
spending, and it is necessary to maintain a close watch on what
is a very uncertain future. It is expected that the global economy
will continue to be trapped in a slow, L-shaped recovery, with
business conditions facing the Canon Group remaining severe
for the foreseeable future.
The Canon Group has, however, successfully managed to
further strengthen its fi nancial condition, by implementing vari-
ous management reforms undertaken until this term. Therefore,
Canon has designated 2010, the fi nal year of Phase III (2006–
2010) of its “Excellent Global Corporation Plan,” as “First Year
of Growth,” a turning point to the growth mode. Canon will
make full efforts to improve business performance at a speed
that exceeds that of the economic recovery under a new growth
strategy.
Canon will begin by focusing on the introduction of innova-
tive products and services that take markets by storm. For exam-
ple, Canon strives to utilize the most of technologies and
personnel resources Canon has developed throughout its history
to identify market trends early on and create novel products and
services like the “imageRUNNER ADVANCE series” which has
the potential to become the core of the promising solutions
business.
Next, Canon will also focus on capturing signifi cant portions
of markets in China and other parts of Asia, where signifi cant
growth beyond that of the industrialized nations can be expect-
ed. Canon’s approach will be to maximize competitiveness by
thoroughly considering the characteristics of individual regions
and revising sales strategies from the ground up.
In addition, Canon will make Océ N.V., a Dutch printer man-
ufacturer with strengths in printers for commercial use and
large-format printers for business use, into a consolidated sub-
sidiary and by doing so, Canon will enhance its direct-sales and
direct-service systems, mainly in Europe and the U.S., and apply
its technologies and products to overwhelmingly achieve the
No.1 position in the printing industry. With the addition of Océ
to the Canon Group serving as a foothold, Canon will also
accelerate efforts to achieve its long-held objective of construct-
ing a global tri-polar (Japan, U.S., and Europe) business creation
organization.
To nurture the development of new businesses, Canon plans
to search for and develop existing businesses and peripheral
businesses, enhance Group company sales to non-Group mem-
bers and swiftly establish positions in next-generation businesses
such as medical imaging and industrial robots.
As Canon moves ahead with the measures mentioned
above, it will remain steadfast in its efforts to achieve further
improvements in management quality. To strengthen its profi t
structure, Canon will work on restructuring the semiconductor
business, strengthening the offi ce equipment business and cre-
ating an optimal production system.
Canon will also continue to promote inventory reductions
and strive for “supremacy of quality”.
Offi ce Business Unit
The importance of providing added value in the form of net-
working, integration, color printing, multifunction and solutions
has grown in the offi ce imaging products business. Canon
expects that the printing market will expand in the long term as
well as the offi ce product market. However, as the impact of the
economic downturn has continued to affect the entire industry,
sales for fi scal 2009 decreased. In recent years, a new printer-
based MFD market has emerged as printer vendors seek to enter
the copying machine and MFD market.
Canon has matched its business strategy to market trends by
strengthening its lineup of digital color network MFDs and print-
on-demand machines. In 2009, Canon launched the imageRUN-
NER ADVANCE series, a new lineup of digital color MFDs with
enhanced network capability. In addition, Canon entered into the
monochrome printing market with the introduction of the
imagePRESS 1135/1125/1110 series. To maintain and enhance its
competitive edge and to meet increasingly sophisticated custom-
er demands, Canon is reinforcing its hardware and software
product lineups and solution capability.
Canon’s laser printer business has maintained a strong mar-
ket position and has consistently displayed solid growth.
However, the recent global economic downturn has led to a
dramatic market decline. Although a recovery is expected in
developing countries, particularly in Asia, uncertainty remains.
Within the monochrome laser printer market, demand in emerg-
ing economies, which had been driving market expansion,
declined in fi scal 2009 along with demand in developed coun-
tries. This situation has caused the overall market to shrink. As
for color laser printers, market growth reversed from expansion
to a slight contraction. Under such severe market conditions,
Canon is accelerating its development of competitive, strategic
products in all segments in preparation for an eventual econom-
ic recovery. Canon is also focused on shifting from selling single-
function models to multifunction models, where Canon expects
continued growth in demand. Canon is concurrently promoting
automated production of cartridges and in-house production of
components in order to ensure stable procurement.
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