In 2013 you may have heard that Nokia sold their mobile division to Microsoft at a price considerably lower than what it was once worth. One of the main reasons behind this is because they failed to keep up with the market and customer demands. Canon seems to be facing similar issues and has recently had to cut it's profit forecast for 2015.
Now admittedly the profit cut was due to several issues and not just a Canon problem, however there are a number of underlining problems at Canon.
A good number of our sources agree that Canon is facing some internal problems and it's preventing them from operating effectively. There are internal conflicts and due to this they seem to be reacting extremely slowly to the market and customer demands. Canon seem to be more interested in maintaining their faltering position as opposed to innovating, or executing their innovations. Customers are very quick to notice when companies drip feed features and it's frustrating and alienating. Their latest DSLR the Canon 5DS and 5DS R has a 50mp sensor which at a glance seems amazing, however when you dig deeper you find 2010 technology repackaged with a premium price. Compare this to the Sony A7R II and you'll see why this is not innovating.
The main reason why Canon is failing to innovate is because of how they manage their two divisions. Essentially their Cinema and their DSLR divisions are constantly looking to ensure they don't step on each others toes. Basically they don't want to make any cameras that could affect the sales of another camera. Now if this was done by two separate market leading companies then it could work, similar to price fixing (which is illegal of course). However when this is done internally, it's illogical and benefits no one but your competition. The most frustrating aspect about this is that Canon is aware of this huge problem, but has failed to come up with a solution.
Companies like Nikon and Sony have been making significantly better cameras for a good number of years capitalizing on Canons unwillingness to keep up. A quick look at sensor technology on DXOmark shows how Canon has remained behind for quite some time now. They also seem to believe 4k is still some elusive feature that can only be added to the most expensive high end cameras, even though it's been available for 12 years now.
Lastly their latest camera The ME20F-SH boasts 4 million ISO and can pretty much see in the dark. Again this sounds pretty cool but then when you break it down, it's a 2mp camera with a 30k price tag, simply ridiculous in my view.
Ultimately Canon are facing some tough issues moving forward and it doesn't seem like they're doing enough to fix things. Internally their departments are not working together effectively and it's creating a negative loop. Should this continue which I'm guessing it will, there could be some really difficult times ahead for Canon as their market share inevitably shrinks.
I'm a fan of Canon and would love to see them continue as the market leader. I hope Fujio Mitarai has a plan for the future which does not involve doing the same thing and hoping for a different result.