Facing a decline in the core camera business of the firm as an outcome of the competitive entry of smartphones, Canon identified the network security sector as a possible growth market, with estimated earnings of US$23 billion by 2020. By getting Axis Communications in 2015 and Milestone Systems in 2014 Canon chosen to pursue this sort of increase potential outside its core competency.
Canon paid a 50-per-cent premium for the acquisition of Axis cash- only offer, while selecting to allow its two acquired companies to continue operating as independent entities. Should Canon have created a strategic alliance with these two firms? Would these acquisitions allow Canon to realize synergies and procure its target of $1 billion in sales from the network securities market by 2020?
PUBLICATION DATE: June 13, 2016 PRODUCT #: W16355-HCB-ENG
This is just an excerpt. This case is about LEADERSHIP & MANAGING PEOPLE
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