As we can see from the complete value chain above, the primary value adding activities consist of inbound logistics, operations, outbound logistics, marketing and sales and service. For the purposes of this analysis, the value chain for Canon’s digital cameras will be isolated from other company divisions for analysis.
Most of Canon’s manufacturing subsidiaries related to the production of their cameras are located in Japan or close by in Asia. It should be noted that they are also owned by Canon and the company as a whole covers a large portion of the overall supply chain which helps them have more control on the overall value chain from customers’ point of view. For example, they process most ‘raw materials’ themselves and even blow the glass themselves through one of their subsidiaries.
For the purposes of this research, we will isolate the production of lenses as this is one of the most complicated and important stages of production. In total, a Canon camera can have up to eight lenses for the more professional products which all have different functions. Each lens is put in to the camera by hand as they are made of sensitive material (fluorite).
Canon has many value adding activities in the production of materials including ‘high speed processing’ and ‘low power consumption’ for its digital cameras meaning that each camera works quickly and has a long battery life. They have an almost entirely automated production process which reduces the number of errors made usually by humans during this process. Their facilities that house the production of all digital cameras at every stage of production are kept very clean and not even a ‘single speck’ of dust is acceptable in its production facilities. Each digital camera model is individually tested for durability before sent to be mass produced by performing ‘drop tests’...