CANON: A Circular Economy Business Model Case

Abstract

This report presents the case study of Canon’s EMEA business for Document Solutions (DS), with a focus on the business model for remanufacturing and refurbishment. It was chosen as it provided an example of a mature remanufacturing model, as well as potential for further circularity and business benefit through expansion of refurbishment activities. Canon EMEA has also been growing services such as Managed Print Service (MPS) – a service-based model for providing printer copiers – which, while not a focus of the case study, provides opportunities for both remanufacturing and refurbishment. Canon operates in a market which is currently in decline, with vendors competing intensely for market share. This is creating a stark contrast between a business model driven by new product sales, and one that emphasises the cultivation and reutilisation of existing deployed assets. In this context, it is important to emphasise that this case study focuses on the circular business models and potential for Canon EMEA, whose business is principally a combination of sales/marketing and service delivery. This is in contrast to Canon Inc. (Japan) who manufactures and supplies equipment for Canon EMEA to sell and integrate into its service offerings. This case study explores the opportunities, as well as enablers and barriers, to Canon expanding the role of remanufacturing and refurbishment within its circular business models. We believe this will have important positive implications for Canon given the broader strategic challenges it faces