R&D and business strategy: Analysis of practices at Canon

Canon has been one of the most innovative high technology companies in Japan. Canon has been able to strategically reposition itself effectively through systematic long range technology forecasting, identification of product segments with high potential and introduction of products in these segments ahead of its competitors. Canon has used globalization, alliances and innovation in a well coordinated manner. The R&D strategy of Canon involves incorporation of user perspective in problem formulation, then rapid problem solution through multifunctional groups, rapid productionization and continuous improvement of manufacturing process. The business strategy of Canon can be termed as dynamic competence building in which distinctive competencies are renewed with the objective of dynamically maintaining its competitive edge.