Mitarai took over in January 1972 and began to transform the company. He eliminated several unsuccessful products and eliminated unnecessary overhead. He also streamlined the chain of command, cut inventory, and improved cash flow management. The changes led to Canon’s success, and the company became the dominant company in Japan. In 1975, Mitarai and his staff also introduced the AE-1 35 millimeter camera. This groundbreaking product used a microprocessor to focus automatically set the exposure time. To promote this new technology, he used tennis star John Newcombe in television ads.
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In 1998, Mitarai replaced the ubiquitous production line with an assembly line centered around small groups called “cells.” This approach encouraged teamwork and a sense of personal responsibility, and the cameras became faster and more efficient. In addition to reducing debt, Mitarai implemented a cash-based accounting system. In the US, this method allowed the company to save on payroll taxes. By using cash, the company is able to pass more contracts and cut costs.
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Mitarai also pursued kyosei, which focuses on social responsibility. He was the head of the Japan Business Federation and the Nippon Keidanren, the influential lobby group for Japanese companies. After three decades in the top position, Mitarai stepped down as president and CEO of the company. However, he remained as chairman and appointed Tsuneji Uchida as its new president and CEO. In the years since, Mitarai’s acquisition of Oce and Axis, the Japanese company has grown considerably.
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