This is a preparation for the Canon Case which was given at the Universiteit Maastricht exam 2004! 9 pages!!!

Essay by c.schweizerUniversity, Bachelor'sA-, March 2005

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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)

- Operations/handling:

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...