OPERATION STRATEGIES IN DIGITAL

SLR CAMERA INDUSTRY

GROUP MEMBERSAMIR ASYRAF BIN MOHAMMAD REDZUANAHMAD ZAFRI BIN AB AZIZ

HISTORY

CANON CORE COMPETENCY

Precision mechanics, fine optics, microelectronics and electronic imaging

NIKON CORE COMPETENCY

Quality imaging products

SALES COMPARISON

GLOBAL MARKET SHARE IN 2010

BUSINESS STRATEGIES

CANON• Realizing the World's

No. 1 Products through Innovation

• Globalizing Innovative Technologies

• Pursuing the World's Best Manufacturing

• Striving to Deliver the Highest Value

• In Pursuit of a Sustainable Society

• Training the Leaders of Tomorrow

NIKON• Successive

launching of products that are clearly differentiated in terms of technologies and marketing capabilities

• Establish brand and secure leading positions in emerging nation

• Achieve 15% operating margin in the year ending March 2016

COMPETITIVE

ADVANTAGESLOWEST

COST PRODUC

ERHIGH

QUALITY PRODUC

T

Integrated value chainCanon has been able to reduce cost in every aspect of the value chainIn-house fully automated production systemIts in-house production system has a dual aim of cost-reduction and product innovation.Investment in cost-saving technologyCanon adopts computer aided engineering (CAE)which includes and allows prototype-less technology

Robust featureThe recent models of Nikon digital cameras are designed for quick response time and for shooting different situationsAdvertisingNikon had spend a lot on advertising to build and enhance their branding

CANON VS NIKON OPERATION STRATEGY

CANON NIKONProduct cameras,

camcorders, photocopiers, computer printers

Digital cameras, camera-related products and binoculars, to industrial precision equipment including IC and LCD steppers and scanners, microscopes and measuring instruments.

CANON NIKONQUALITY

• Committed to realizing the “Canon Quality” of providing safety, smartness and satisfaction to the customer.

• Quality Assurance (QA) System to ensure the best quality is built-in at all stages of development, production, and delivery to gain high reputation in market.

• Implement the Basic Quality Policy has set its Quality Control Directive (QCD) added environmental items to make it more consistent with other standards. Revised rules across the Group to promote the provision of even better products and services.

CANON NIKONPROCESS

• Aiming to deliver innovative products while minimizing costs, Canon develops and produces parts and equipment in-house. In addition to key components and devices, the Canon Group internally manufactures mounted circuit boards and other core parts as well as the dies and molds used to produce parts, and even production equipment

• Maintaining constant growth in spite of fierce competitions. Expansion of other digital businesses than camera.

CANON NIKONLOCATION When selecting the

location, they have evaluated each possible factor that will affect the performance of the company. There are total four steps in general procedure for making location decision and Canon has done it accordingly. The four steps are: • decision for

criteria to use for evaluating location alternatives,

• identify important factors

• develop location alternatives

• evaluate the alternative and make decision.

Located to the nearest supplier and low labor cost.

CANON NIKONLAYOUT Layout supports

manua, semi-automated and automated product-focused production depending on location and cost

employ cell production--a production system in which one unit, or cell, of several workers takes charge of manufacturing one part or one product

HUMAN RESOURCES

five guiding principles for employees established based on the “respect for human life and dignity,” one of the key management philosophies: (1) the “Three Selfs” spirit, (2) Meritocracy, (3) Internationalism, (4) Familism, and (5) Health First.

• Hire the best ,depend on examination, national wide search

• Respect for diversity(disability)

CANON NIKONSUPPLY CHAIN Previously it

was based on budget and forecast, now the supply chain is driven by real demand; the customer orders

Distribution handled by UPS chain solutions (they focus on the logistics related to getting products from factory to customer Nikon will concentrate solely on R&D

INVENTORY Maintains high finished goods inventory

Prevent a surplus of inventory and over-supply to avoid unit price dropping

CANON NIKONSCHEDULING

Centralized production planning, depending on which plant

Medium under management plan

MAINTENANCE

Your equipment will be serviced by Canon Factory Trained Technicians, using state-of-the-art technology,

Nikon Corporation has built a training system linked with its personnel system: target setting and achievement ability; communication ability; and educational ability

THANK YOU

BRADER