Reflection Paper 3

Abigail Neri

Individual Assignment 3
Xerox: Adapting to Turbulent Marketing Environment

When it comes to photocopying papers, I grew up using Xerox as the generic name for it. With
the rise of technology today, I thought this brand completely bid its farewell to the world, but I was
wrong. Chapter three of the Principles of Marketing book made me discover that Xerox became a prime
example of the 21st century’s marketing principles on adapting to the turbulent marketing environment.

1. How have changes in the marketing environment created opportunities and threats for Xerox?

Looking back to where it started, Xerox Corporation, formerly known as The Haloid
Photographic Company, introduced the first plain-paper copier in the world, Xerox 914, as a response to
the growing need to share documents easily and quickly in the late 1950s.

Welcomed by the third phase of the Industrial Revolution - the Digital Revolution (defined by
Digital Pulse as the period when computers and digital systems enabled new forms of accessing and
exchanging information), Xerox capitalized on this environment. Taking the opportunity to have a strong
patent, few competitors, and a growing market despite the uncertainties of the new technology and
high production costs, Xerox was able to propel a failing photographic equipment company into the
copier industry and achieved supremacy. It maintained a nearly 100% market share until other
companies entered the market in the late 1970s and early 1980s, as cited from Investor’s Business Daily.

In the 1970s, innate technological progress and growing demand for copiers prompted
businesses like the International Business Machines Corporation (IBM) and Kodak to share the copier
industry with Xerox. In line with the continual growing competition is the increase in legislation that led
to Xerox’s sue IBM for patent infringement and eventually won the lawsuit, according to Smithsonian
Magazine. However, this issue dragged Xerox for years—during the 1980s, Xerox lost in an antitrust suit
against its Japanese competitors - thus forced to license its photocopying technology. The event was a
massive slap to Xerox as they plummeted and was in near bankruptcy, being in US$2B in debt and losing
substantial market share to its rivals.
 Xerox’s stand-alone copier services were no longer in demand in its business context as people
opt for sharing rather than printing in the digital world. Xerox slowly dug up its own grave as it focused
more on selling and improving services on its current products rather than producing new items to meet
customers’ demand. The business responded slowly to changes in the customer's taste and preferences
and opposed modern technologies to counter greater competition.

Attempting to redeem their name on the market, Xerox released a brand new corporate
signature as “The Document Company” with a logo called “Pixelated X” that symbolized the transition of
documents between paper and digital worlds in 1994, as described by UnderConsideration. Xerox
invested in the retooling of its services, simplified its operations, and reorganized itself to satisfy its
customers’ rising digital demand. In 2003, it adopted the Total Quality Management (TQM) practices,
later known as the Benchmarking Program, which resulted in significant success and redemption. 

With the growing demand and the rapid development of technology, Xerox gradually accepted
the changes and became sensitive to customer needs. Not just to provide an answer on how to
efficiently and effectively produce thousands of copies of a document, but finally develop solutions for
copying, exchanging, and distributing files and documents between organizations and personnel, leading
them to where they are today.

2. How does the chapter-opening Xerox story relate to the major marketing concepts in
the chapter?

There is this quote that states, “Failure isn’t fatal, but failure to change might be,” and Xerox’s
story will always remind how the changing marketing environment is a core factor in every company’s
brand life. Xerox Corporation was the one that pioneered the industry of copiers, even became
synonymous with photocopying; however, they gradually lost the limelight and were unable to attract
customers. The chapter-opening showed how Xerox peaked in their industry but could not keep up and
almost lost its existence. It also showed how it revamped and became another entity that does not
solely focus on the products it sold, but on the core concept of its business - the ability to share
documents and information.
 The story of Xerox shows how the market is becoming more saturated, and brands would offer
various solutions topped up with aggressive marketing approaches. With the entry of new players,
changing market demands and preferences, and new technologies, failure to embrace and react to
changes might be the final nail to the coffin of every brand’s name. Quoted from Yazdanifard (2017),
“one should learn from their competitors and implement holistic marketing approaches to revive the
brand image and enhance the perceived brand value in the minds of customers.” 
 References

101: 1,2,3... Here comes the 3rd Industrial Revolution. (2020, September 21). Retrieved October
05, 2020, from https://www.digitalpulse.pwc.com.au/third-industrial-revolution-guide/

How Xerox's Intellectual Property Prevented Anyone From Copying Its Copiers. (2019, July 02).
Retrieved October 05, 2020, from https://www.smithsonianmag.com/innovation/how-
xeroxs-intellectual-property-prevented-anyone-from-copying-copiers-180972536/

Kotler, P., & Armstrong, G. (2012). Analyzing the Marketing Environment. Principles of
Marketing (14th ed., pp. 64-90). Pearson Prentice Hall.

Saito-Chung, D. (2016, April 18). Copy His Success: Joe Wilson Zeroed In On Innovation At Xerox.
Retrieved October 05, 2020, from
https://www.investors.com/news/management/leaders-and-success/copy-his-success-
joe-wilson-concentrated-on-innovation-making-xerox-a-winner/

UnderConsideration. (n.d.). Search. Retrieved October 05, 2020, from

https://www.underconsideration.com/brandnew/archives/xerox_the_very_very_very_shi
ny.php

Yazdanifard, R., & Habib, R. (August, 2017). The Underlying Reasons behind Xerox's Strategic
Management Failures and Possible Remedies That Could Have Been Implemented, 4(8).