Question Il:How Canon building and leveraging competencies(see Figure 2)? Canon was in the camera business originally.It anchored that business in its basic management discipline of quality manufacturing and value engineering,a set of competencies in technologies-primarily optics technology -and in developing and managing dealer networks. Then,through the evolution of camera business and through dedicated research efforts,Canon built a strong competence in the area of micro-electronics. Given these resources and competencies,Canon decided to enter the photocopier business.it reconfigured the business so as to be able to leverage the resources and capabilities it had. The photocopier business,in turn,allowed Canon to build new up-stream and down-stream competencies-in new materials technologyQuestion II: How Canon building and leveraging competencies(see Figure 2) ? ’ Canon was in the camera b usiness o riginally. It anch ored that busine ss in its basic man ageme nt disci pline of quality manufactu ring and value engineering, a set of competencies in technologies – primarily optics technology – and i n developing and managing dealer networks. ’ Then, t hrough the evolution of camera b usiness and t hrough dedicated research efforts, Canon built a stron g com petence in the a r e a of micro -elect r o nics. ’ Given these resources a n d competencies, Canon decided t o ente r the p h o toco pier business. it recon figure d the business so as t o be able to leverage the resources and capabilities it had. ’ The photo copier business, in turn, allowed Canon to b uild new up-stream and down-stre a m competencies-in new m aterials technology