Xerox Corporation

Surviving the Competitive Crisis

 Summary
The Xerox Corporation with headquarters in
Stamford, Connecticut was founded in 1906
in Rochester, New York as the Haloid
Company, a manufacturer of photographic
paper.
In 1947, the Haloid Company obtained the
license to Chester Carlson's basic xerographic
patents from the Battelle Development
Corporation of Columbus, Ohio.
 Summary
In 1961, the company name was
changed to the Xerox Corporation and
was listed on the New York stock
exchange.
The Xerox Corporation expanded
operations and grew from $176 million
in 1963 to $4 billion in sales by 1975.
 Summary
From the mid-1960s to the mid-1970, Xerox
revenues grew at an average annual rate of
about 23 percent per year and profits
increased at an average rate of about 20
percent.
Between the mid-1970s and 1980, revenue
and profit growth slipped to an average
annual rate of about 16 and 14 percent,
respectively.
 Summary
From 1981 to 1983, revenues flattened
and net income fell 17 percent below
1980 levels.
ROA fell from 19 percent in 1980 to 8.4
percent in 1983.
Statement of the Problem
The purpose of this analysis is to study
the following critical areas of the
corporation:
Design of the product,
Production process,
Inventory and personnel management,
Supplier relations,
Marketing functions
 Objectives
Construct SWOT analysis for the case
study
Identify the strength and weaknesses of
the corporation to supply plan of actions
Deploy strategies to help eliminate the
existing problem identified
Optimum product design through defined
plans of action
Areas Consideration
 STRENGTHS
1. Ph.D. Degree holders
2. Above-average income earners
3. Pioneers
 WEAKNESSES
1. Young, idealistic, and aggressive
2. Technically- rather than management-
oriented
3. Volatile industries
 OPPORTUNITIES

1. Market demands
2. Technological Innovations
3. Related industries
 STRENGTH

1. Competitors
2. Economy
3. Government
Strengths – Opportunities
Strategies
Have higher chances on increased
research activities
Sufficient funding for research
activities and commercialization
Established prestige
Weaknesses – Opportunities
Strategies

Low-cost products
Efficient transactions
Creation of new industries
 Threats – Strengths
Strategies

Alliances/Mergers
Government support/subsidies
Deregulation
 Weaknesses – Threats
Strategies

Continued and sustained development

and growth
Innovative strategies
Integration with government projects
 Alternative Course of Action
Quality: Continuous improvement on features
of products and services.
Advantages:
Increased room for improvements;
Affordable and increased client satisfaction.
Disadvantages:
Higher initial capital outlay;
Long-term return-on-assets
 Alternative Course of Action
Management: Intensive trainings to all
officers and members of the hierarchy.
Advantages:
Increased room for improvements;
Affordable and increased client satisfaction.
Disadvantages:
Higher initial capital outlay;
Long-term return-on-assets
 Alternative Course of Action
Market: Penetrate the world's leading
industries.
Advantages:
Increased room for improvements;
Affordable and increased client satisfaction.
Disadvantages:
Higher initial capital outlay;
Long-term return-on-assets
 Conclusion
For the past years Xerox has been changing the
company in most of its critical aspects to
improve quality. They have focused on one
strategy- concentrating on productivity and
management capabilities; on the other hand,
the marketing aspects were neglected. Hence
significantly the midcourse corrections will move
toward a goal of becoming the most productive
company in the industry. In the kind of their
industry, quality was a race without finish line.
 Recommendation
(Quality) Continuous improvement on
features of products and services.
 Plan of Action
Tie up with related industries and
government agencies
Development of technological tools
and devices
Explore unknown areas of interest
Regular reviews of documentations
and facilities improvements
Increase satellite offices worldwide