Business Strategies

Excellent Global Corporation Plan Phase V 2016-2020

Canon, seeking to become a truly excellent company that is admired and respected around the world, launched the medium-to-long-term Excellent Global Corporation Plan in 1996 and has successfully completed the first four phases of this plan. In Phase V, we are implementing seven key strategies as we embrace the challenge of new growth through a grand strategic transformation.

1Establish a new production system to achieve a cost-of-sales ratio of 45%

Strengthen domestic mother factories by further promoting a higher ratio of production in Japan and the integration of design, procurement, production-engineering and manufacturing-technology operations. At the same time, pursue total cost reductions through the promotion of such advanced production-engineering technologies as robotics and automation.

2Reinforce and expand new businesses while creating future businesses

Create and expand new businesses by accelerating the horizontal expansion of existing businesses. Additionally, concentrate management resources and make effective use of M&A to accelerate the expansion of promising business areas such as commercial printing, network cameras and life sciences.

3Restructure the global sales network in accordance with market changes

Review existing sales organizations and reinforce omni-channel marketing that integrates online and brick-and-mortar sales routes while strengthening and expanding solutions-driven businesses with the aim of solving issues faced by customers. Additionally, continue focusing energies on cultivating markets in emerging countries.

4Enhance R&D capabilities through open innovation

Discard the strict notion of self-sufficiency and construct an R&D system that proactively leverages external technologies and knowledge, promoting joint and contract research with various partners such as domestic and foreign universities and research institutes.

5Complete the Three Regional Headquarters management system capturing world dynamism

Promote the acquisition of promising businesses through active M&A and complete the Three Regional Headquarters management system, under which Japan, the U.S. and Europe will each roll out businesses globally.

6Cultivate globally competent human resources capable of performing duties while maintaining an all-encompassing perspective of the world map

Build a global management system targeting the optimal use of human resources in operations worldwide. Examine personnel worldwide to identify candidates for senior management positions and develop the skills of these future leaders by rotating them through key positions in Japan and overseas

7Re-instill the Canon Spirit as a foundation for new growth

Revitalize the enterprising spirit and San-ji (Three Selfs) Spirit at the heart of Canon’s corporate culture.

Canon’s Road to Phase V

Phase I 1996-2000

To strengthen its financial structure, Canon transformed its mindset to a focus on total optimization and profitability. The company introduced various business innovations, including the selection and consolidation of business areas, and reform activities in such areas as production and development.

Phase II 2001-2005

Aiming to become No. 1 in all major business areas, Canon focused on strengthening product competitiveness along with the changing times, stepping up efforts to digitize its products. The company also conducted structural reforms across all Canon Group companies around the world.

Phase III 2006-2010

Canon moved ahead with such growth strategies as enhancing existing businesses and expanding into new areas while also thoroughly implementing supply chain management and IT reforms.

Phase IV 2011-2015

Responding to weakness in the global economy, Canon revised its management policy from a strategy targeting expansion of scale to a strategy aimed at further strengthening its financial structure. While actively pursuing M&A activities, the company restructured its business at a foundational level to introduce new growth engines for future expansion.