Case study xerox
- 1. Surabhi R Susmitha C Tibin Joseph Tina John Tomina Thomas Vipin Raj Group No - 10 S4 MBA MACFAST Thiruvalla, Kerala
- 2. INTRODUCTION OF XEROX CORPORATION • Type Public • Industry Document Services, Digital Imaging and Computer peripherals • Founded Rochester, U.S 1906 • Headquarters Norwalk, Connecticut ,U.S • CEO (present) Ursula M. Burns • Website www.xerox.com
- 3. XEROX HISTORY IN BRIEF Xerox was founded in 1906 in Rochester in United States of America by a person named Haloid Xerox Xerox introduced the first plain paper office copier nearly 50 years ago Xerox became almost generic for copying In 1998 Xerox profits were growing at 20 percent a year and its stock price was soaring Then things went wrong for Xerox. Only in 18 months Xerox lost some 38 billion US dollars in market value In the middle of 2001 stock price had plugged from $70 in 1999 to under $5 The world was quickly going digital but Xerox hadn't kept up. customers no longer relied on the company that results in Xerox failure
- 4. XEROX NEW BRAND LOGO • Xerox is once again growing and profitable • The new brand logo for Xerox • Xerox new brand logo better fits the changing digital environment helping to complete the transformation of the company’s image
- 5. PRODUCTS OFFERED BY XEROX CORPORATION Xerox today manufactures and sells a wide variety of office and production equipment including LCD Monitors Photo copiers Xerox Phaser printers Multifunction printers Large-volume digital printers Workflow software under the brand strategy of FreeFlow Xerox also sells scanners and digital presses Xerox also produces fax machines, professional printers, black and White copiers Markets software such as Xerox DocuShare, Xerox MarketPort and FlowPort
- 6. SWOT ANALYSIS- STRENGTHS strong corporate brand. PARC (strong R&D lab). efficient working solutions for companies worldwide. strong environmental focus. The organization has a reputation for innovation and high quality management. Qualified suppliers. Successful implementation of benchmarking.
- 7. WEAKNESS PARC became independent centre for commercial innovations. Fuji Photo Film Co. raised its stake in the venture to 75% in 2001. operates in an ever changing, fast pace market dynamic. Less focus on product features. DIT fell behind HP and Kodak.
- 8. THREATS Competitors- HEWLETT-PACKARD, CANON INC,RICOH COMPANY LTD. Financial constraints. Growing pressure on companies to become Carbon neutral.
- 9. OPPORTUNITIES “An outstanding customer service experience”. Acquisition of Affiliated Computer Services (ACS). Focus on environmental features of products.
- 10. THE SUCCESS HIGHLIGHTS: From year 1946 to 1973 annual sales growth exceeded 25%. Annual growth of earning exceeds 35%. The above achievements were in plain paper copier business. In the year 1959 the company introduced 914 plain paper copiers that was early revolution in this business. The copying equipment business achieved the growth from 20 million in 1959 to 9.5 billion in1965 just within 6 years In 1990 the world copy business was over 900 billion copies.
- 11. US firms (IBM & KODAK) & Japanese firms(Canon, Minolta) entered. 50/50 JV with the Rank Org.PLC - market excess to Europe, Africa & Middle East. The partnership with the Fuji Photo Film Company - access to Japan & Asia. Concerned with US govt. antitrust suit than with the market entry with the domestic & foreign competition. Between 1970-1980 market share & revenues fell from 96% to 45%. The Japanese attacked the low & medium range of the copier market. They were selling the products at the Xerox’s manufacturing cost. David Kearns became the chairman in 1982. HURDLES:
- 12. ATTEMPTS FOR SURVIVAL Xerox developed a corporate revitalization plan called “Leadership through quality”. Plan was developed to meet customers requirements. Senior management drives this LTQ plan with the help of employees to focus on the process as well as products. LTQ plan was fully integrated business process.
- 13. CHANGE LEADERSHIP & ITS IMPACT In 1991 KEARNS passed the leadership of Xerox to PAUL ALLAIRE. Customers satisfaction level increased in every market served by company. Revenue rose by 9% to record $13.6 billion. Profit increased by 23% to $599 million. ROA improved by over 2 points to 14.6%. $1.1 billion in cash was generated.
- 14. ORGANIZATION OF XEROX 9 business divisions. 3 geographic customers operation division. Primary focus was on BUSINESS MGT LEVEL. The divisions responsible for Xerox offering:- Research and technological development, manufacturing, sales, services & administration. Dotted line relationship between business unit controllers and GM. Document processing financial organization was a modified matrix organization. The business division engaged in product development & manufacturing. Customer operation division were organized geographically &manage customer relationship. The MCS concentrated on responsibilities and performance of all 12 divisions.
- 15. FINANCE & CONTROL FUNCTIONS The central focal point for the finance function of Xerox was FEC. The membership consisted of senior corporate finance staff & CFO’s from the major Xerox operating organizations. FEC set the course for becoming a world class financial operation based on their benchmark study. They felt controllers could contribute in the formulation of mgt. decisions at operating unit. FEC evolved in parallel with the start of LTQ & benchmarking activities. The key to value added concept was in helping line managers to make more perfect business decisions. Building trust in Xerox finance community. Meet once a quarters for two days and discussions on wide range of financial matters.
- 16. XEROX STRATEGY TO WIN Execute on growth initiatives Capitalize on market opportunities Expand distribution Leverage distribution investment Secure future Technology leadership Build on Xerox heritage of innovation Optimize productivity & infrastructure. Drive cost reductions & margin Improvement.
- 17. Xerox better integrate its marketing plan Defining organization mission. Establishing strategic business units. Setting marketing objectives. Performing situation analysis. Developing marketing strategy. Implementing tactics. Monitoring results.
- 18. Conclusion:- Xerox can be fixed. Because…..