Canon in India: Restructuring to Survive

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Case Details:

Case Code : BSTR080
Case Length : 14 Pages
Period : 1997 - 2003
Organization : Canon Singapore
Pub Date : 2004
Teaching Note :Not Available
Countries : India
Industry : Imaging

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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The Restructuring

The restructuring initiative was focused on revamping the company's product, brand-building, promotion, sales and distribution, and customer service strategies.

Business Strategy | Case Study in Management, Operations, Strategies, Business Strategy, Case Studies

As a first step towards this, Canon India created ten core managerial positions. Five of these were designated as business development managers, for the regions of Chennai, Delhi, Kolkota, Mumbai and Pune. The other five were designated as managers in charge of product management, marketing programs, sales and marketing, support and coordination and consumer grievances. Apart from this, the company integrated the sales, marketing and support processes, which were previously operating as independent divisions. To ensure wider reach of its products, the company made each senior manager responsible for his offerings. The company then proceeded to revamp its sales and distribution operations...

After the Restructuring

By early-2003, as a result of the restructuring initiatives, Canon India had become a leading player in nearly all segments of the digital imaging market in India. Its position was especially strong in the printers, scanners, cameras, copiers and multimedia devices segments.

Reportedly, the strategy of launching a range of new products every quarter, and its aggressive advertising and distribution strategies, had helped it establish itself as a company offering sophisticated, superior quality products. Canon India registered an impressive growth of 33% in 2002, with its revenues amounting to Rs 2.02 billion, as compared to Rs 1.51 billion in 2001. Reportedly, the company witnessed growth across all its business segments. In 2002, the inkjet printer business and scanner business registered growth of 313% and 656% respectively, while the fax business and digital copiers business grew by 180% and 242% respectively. Canon India's MFD segment registered a growth rate of 251% in the same year...

Exhibits

Exhibit I: Major Products of Canon Inc
Exhibit II: A Note on the it Peripherals Market in India

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