1. Relate Canon's introduction of copiers to Europe with companies' usual internationalization process.
Pattern of internationalization can be measured along five scales:
- Degree of similarity: first only in home-market (Japan), as the internationalization process continued, they started to go to other less familiar markets
- Number of countries: first only in Japan, later in Europe (1957) and the US (1955)
o originally, copiers only sold in Japan
o than exporting copiers to Europe
o later international by selling through dealer network in Europe and the US, distributors initially independent and free which product they wanted to sell
o 1972 takeover of Giessen FDI
o in 1975 replacing distributors with integrated Canon marketing subsidiaries
o logical step, as company becomes more internationally committed, internal handling of foreign operations
o 1982 second plant in Liffre
2. Explain any differences and similarities you observed in question 1.
- Approach Canon used was quite similar to the usual internationalization pattern
- Canon did not engage in mergers and licensing
- Reason: mergers (and licensing), e.g. means loss of control and knowledge
3. Use the "Porter Diamond" to evaluate the conditions for the new facility in Giessen.
- Demand conditions:
o Start production near observed market
o Till 1972, Canon did not sell copiers in Europe, but attractive market with high market potential and established distributor network was already established
o True especially for EC countries, thus logical choice to set up production facility there (i.e. Giessen)
- Factor conditions:
o Most production factors available at facility in Giessen
o Skilled labour, required knowledge and experience available in aimed facility
o Germany is highly industrialized: capital, technology, equipment as production factors should be available
- Related and supporting industry:
o Canon contracted 80 suppliers locally to provide services and...