The controllability of the profit structure of a product: A case study of the Canon inkjet printer business

Research output: Chapter in Book/Report/Conference proceedingConference contribution

2 Citations (Scopus)

Abstract

Implementing innovations is important for firms to grow, but appropriating the returns from the innovations is also important. The ability to appropriate the returns from innovations is said to vary between industries, and yet it can also vary between firms in the same industry. This study is interested in inter-firm differences in the appropriability. Some firms in the same industry may enjoy a higher appropriability, but others may suffer from a lower one. Canon, a Japanese corporation, seems to be the former case. Why Canon's appropriability is higher than its competitors is answered via analyses of their inkjet printer business practices. In the analyses, Canon's inkjet printers which were sold mainly in the 1990s come under discussion. The study suggests and uses the idea "profit profile." This is a concept of grouping the product architecture with the profit allocation of the product. Based on a profit profile, product architecture can be used as the framework for analyzing the profit structure of the product. The study shows that Canon used 3 types of architectures and they change them flexibly, according to their competitive environment. Through the concept of "profit profile," it is explainable why Canon's appropriability is higher than its competitors.

Original languageEnglish
Title of host publicationPICMET '07 - Portland International Center for Management of Engineering and Technology - Proceedings Management of Converging Technologies
Pages185-192
Number of pages8
DOIs
Publication statusPublished - 2007 Dec 1
EventPICMET '07 - Portland International Center for Management of Engineering and Technology - Management of Converging Technologies - Portland, OR, United States
Duration: 2007 Aug 52007 Aug 9

Publication series

NamePortland International Conference on Management of Engineering and Technology

Conference

ConferencePICMET '07 - Portland International Center for Management of Engineering and Technology - Management of Converging Technologies
CountryUnited States
CityPortland, OR
Period07/8/507/8/9

ASJC Scopus subject areas

  • Engineering(all)
  • Strategy and Management

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  • Cite this

    Matsumoto, Y. (2007). The controllability of the profit structure of a product: A case study of the Canon inkjet printer business. In PICMET '07 - Portland International Center for Management of Engineering and Technology - Proceedings Management of Converging Technologies (pp. 185-192). [4349331] (Portland International Conference on Management of Engineering and Technology). https://doi.org/10.1109/PICMET.2007.4349331