This study investigates the essential capabilities for implementing circular economy (CE) strategies, focusing on Japanese manufacturing Fujifilm Business Innovation Corp. as a case study. As the CE model gains traction among businesses and policymakers, it emphasizes maximizing resource efficiency and minimizing waste, presenting opportunities for economic value creation alongside reduced environmental impact. However, companies face challenges in monetizing CE strategies due to substantial initial investments, supply chain cooperation, and consumer awareness efforts. Many Japanese manufacturers struggle to turn sustainability initiatives into profitable outcomes, hindered by regulations and a lack of understanding regarding necessary capabilities. The study identifies the 3Rs—Reduce, Reuse, and Recycle—as foundational to successful CE strategies. Fujifilm Business Innovation Corp. exemplifies how commitment to these principles enhances operational efficiency and profitability. Driven by visionary leadership and a robust recycling system, their initiatives highlight the significance of developing capabilities in resource management, product design, and technological innovation. Ultimately, this chapter aims to provide insights for Japanese manufacturing firms looking to gain a competitive advantage through CE strategies. By emphasizing the importance of capability building and learning from successful examples, the study offers guidelines for implementing sustainable practices in the manufacturing sector.