The paper "Resource-Based View in Canon’ s Strategy " is an outstanding example of a management case study. Canon is a multinational from japan which entered into business in the 1960s. The corporation deals with the manufacture of optical and imaging products ranging from cameras, printers, medical equipment and photocopiers (C1038). This paper examines Canon competitive advantage according to the Resource-Based View (RBV). The paper looks at the resources and abilities that help Canon to sustain growth and maintain a competitive advantage. The essay starts with an analysis of RBV and analyses Canon competitive advantages from the case study and literature.
This will help in coming up with a comprehensive conclusion. Canon Resource-Based View (RBV) According to Barney (1991), firm resources and capabilities are critical for business success. In fact, they help the firm in establishing long term focus and strategy (Wernerfelt, 1984). A firm is only able to have a competitive advantage if it can implement a value-creating strategy which is not being implemented by the competitors. Firm resources can be identified as tangible, intangible and human resources. To attain a competitive advantage, the firm is expected to have rare and non-imitable resources which cannot be substituted (Barney, 1991).
To be able to attain profits from the resources, the firm has to establish a competitive advantage, sustain it and appropriate the returns from the competitive advantage. Canon has been able to use its resources to attain strategic growth. According to Priem and Butler, (2001), resources are a source of sustained competitive advantages through exploiting of strengths and responding to external opportunities while eliminating external threats and avoiding internal weaknesses. To understand how to use resources and gain a competitive advantage, it is important to assume that all firm resources are heterogeneous and immobile (Barney, Wright and Ketchen Jr, 2001).
Despite this, not all firm resources hold sustained competitive advantage. The resources are expected to be valuable, rare, imitable and not substitutable to help on sustainable competitive advantage (Barney, 2001). Canon has several resources which meet the criteria for sustainable competitive advantage in the industry. Resources Canon has been able to establish as a market leader in the industry. The major resources for Canon are financial capacity and decentralized research and development.
Through innovation, it has been possible to grow their sales and earn higher profits (Hart and Dowell, 2011). The case study financial data shows that the firm has been able to apply the theory for strategic fit in all their products. The data shown is for 10 years and shows Canon strength for an entire decade (C1401). Financial capability is one of the most vital resources. It helps in creating, maintaining and enhancing sustainable competitive advantage (Peteraf, 1993). It is important to note that physical resources can be easily imitated in the market (Barney, 1991).
With a lot of strong competitors in the market such as Xerox, cannon products such as cameras and photocopiers can be easily imitated. To ensure that they have a sustainable competitive advantage, Canon has been in the frontline to innovate on their products. This includes coming up with unique product designs which include the use of technologies such as RCA and the optical technology (C1042). According to Halawi, Aronson and McCarthy (2005), unique products have a strategic competitive advantage in the market hence creates barriers to increase in competition.