Canon 2011 Annual Report Download - page 53

Strategy Business Units Management System FINANCIAL SECTION
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FINANCIAL SECTION
% Establish an R&D structure and cultivate technologies
that will open future possibilities
, by establishing R&D
centers in the United States and Europe with the aim of
creating continuous innovation in concert with efforts in
Japan. In addition, cultivating basic technologies in the
medical and industrial equipment fields, areas posi-
tioned as next-generation business domains.
%
Achieve optimization of company-wide business
processes
, by thoroughly utilizing Canon’s company-
wide integrated IT systems, pursuing total optimization
of all business processes, including development, produc-
tion, sales and service.
%
Further instill a commitment to ! quality first, " by tar-
geting the elimination of quality problems, advancing
the methods used to manage material defects and work-
ing to embed quality from the upstream stages of
product planning and design.
%
Strengthen foundation as an excellent company , by
strengthening global management functions and culti-
vating human resources to lead these reforms, and
promoting thorough compliance and executing Canon’s
environmental vision based on its newly drafted CSR
activity policy.
Office Business Unit
In 2011, despite disruptions in our supply chain due to the
Great East Japan Earthquake and collateral events, and
notwithstanding a persistently strong yen and the global eco-
nomic downturn triggered by the Eurozone crisis, Canon was
able to maintain its sales of copying machines and MFD busi-
nesses on par with the 2010 levels in constant currency.
The importance of providing added value in the form of
networking, integration, color printing, multifunction and
solutions has grown in the office imaging products business.
Canon seeks to maintain its leading position in both the
printing and in the office markets.
Canon has matched its business strategy to market trends
by strengthening its lineup of digital network MFDs and
print-on-demand machines. In 2011, Canon further expanded
the imageRUNNER series with the introduction of Canon’s
first mid-to-high speed letter-sized devices and low-end ledger-
sized models. We also launched the imagePRESS C7010VPS
series, a digital color press jointly developed with Oc(, inte-
grating Canon’s digital color technology and Oc(’s workflow
innovation. To maintain and enhance its competitive edge
and to meet increasingly sophisticated customer demands,
Canon will continue reinforcing its hardware and software
product lineups and solutions capability.
Canon’s laser printer business has a strong market posi-
tion. However, due to the global economic downturn
initiated by Europe, the sense of uncertainty about the future
of the market has been heightened.
In the monochrome laser printer market, the transition to
a low price category is expected to expand sales in the micro-
office/ home office market and in emerging markets.
The color laser printer market is expected to grow over the
long term, while temporary negative growth was observed
due to the global-scale economic recession. Competition has
intensified as competitors have pursued aggressive pricing
strategies to establish market share.
Canon is promoting technological development in this
market in order to provide competitive products in all cate-
gories with a focus on introducing new and improved
product offerings to market in a well-timed manner.
In 2011, the large format inkjet printer market has been
on a continuous recovery trend, despite the earthquake, the
floods in Thailand and the economic downturn in developed
nations triggered by the Eurozone Crisis. Canon recorded a
higher growth rate than the overall industry in large format
inkjet printer main unit sales in 2011. This growth is attribut-
able to demand from emerging markets and particularly
strong demand from the graphic art market. In the CAD mar-
ket for large format inkjet printers, unit sales to emerging
countries increased primarily due to an expansion in the
sales area. In addition, improved penetration in the
poster/proof market for large format inkjet printers has been
achieved by the launch of eight color models with new pig-
ment ink, LUCIA EX for the graphic art market. Canon
expects to continuously introduce competitive large format
inkjet printer products currently under development in
response to market demand and competitive trends.
Consumer Business Unit
The demand for high-resolution digital photos remained
high, and as a result the interchangeable lens digital camera
market continued to show robust growth in 2011. By market
category, growth remained strong in developed countries,
and was particularly robust in Asia outside Japan and other
emerging markets, contributing strongly to an overall global
growth rate. By product category, the digital single-lens-reflex
(!SLR") camera market showed steady growth, while mirror-
less cameras represented a new category stimulating
consumer demand.
In terms of interchangeable lens digital cameras, on top of
the need for higher resolution and more compact and light-
weight sizes, there is also consumer demand for video
recording functions which manufacturers are meeting with a
full high definition (HD) format and which is becoming a
standard feature. We believe there remains considerable
room for future growth in this category through develop-
ment of new products based on state-of-the-art technology. In
emerging markets, sales volumes of interchangeable lens dig-
ital cameras are increasing rapidly, and there is a pressing
need for improvement of sales and support frameworks in
these regions.
As for the interchangeable lens market, interchangeable
lens digital cameras have made dramatic advances in popu-
larity, and further growth is expected in the future. Canon
will continue to endeavor to market products that meet
customer needs, such as lenses equipped with image stabi-