But the concept ofhaving a LCD screen andthis design turned out to be very attractive.
Canon now realized thatthis was the way forward to digital imaging andstarted to invest heavily.
Lagging behind bothCasio and Sony, it was time to catch up.
Canon established a ’DigitalImaging Business Centre’ andallocated more resources to it.
The Japanese firms worked jointly in an industryassociation to solve critical technical issues.
Moreover, they made sure that the structure was modular, so that eachindividual component could be improved separately.
Instead of fighting battles about standards, each company could instead focus on theproduct and reducing R&D costs. This created a healthy competition - each one differentiated within the defined settings.
The modular, standardized structure also implied that consumer electronics companies could work on each component.
1. Canon entered early and explored digital imaging. Whilethis did not generate any profits, it was absolutely necessary inorder to follow the developments and be able to enter later on.
2. Timing – entering too early isdangerous since you might bet on the wrong horse. Canon invested heavily after the landmark camerafrom Casio. This turned out to be a perfect timing.
3. Canon recruited people fromelectronic companies in order to renew the competence base.
4. The company separated much of its digital development, thereby giving it freedom and preventing that the initiative would be starved of resources.
5. Canon kept searching for and created new market segments.Compact cameras were often sold topeople who had not owned a camera before and later on the companycreated the prosumer segment. Themarketing investments seem to have been an important reason why people chose Canon.