Xerox and Fuji Xerox 1 Nitin Sikri (26/4) & Ram Kiran Dhulipala (31/4

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There is doubt that Xerox and Fuji had a very successful joint venture called Fuji-Xerox (FX) over a long extended period (since 1962). Surely it had its ups and down but the partners were able to successfully steer away from troubled waters. There have been number of reasons which made the alliance successful and they are discussed briefly in subsequent paragraphs. One of the most important reasons for success was the need both Rank Xerox and Fuji had for each other at the time of formation of alliance and in subsequent years. Xerox was looking for lucrative market of Japan and Fuji was looking for diversification into allied areas and thus compelled by Japanese law they came together. This need for each other got renewed from time to time resulting in a symbiotic relationship. The process followed in the initial years was well thought and laid a very strong foundation for long relationship. It was decided to start with complete imports, then assembly and finally production in Japan by FX. This ensured that there were no hiccups in the early crucial years when alliance was most fragile. It helped develop a mutual trust between the partners in early years itself. This trust in each other is cornerstone for success of any JV. Probably as Rank Xerox and Xerox both had prior experience of handling JV, a due care was given to provide autonomy to FX as they started their production and marketing activities. There was a great amount of hand holding in terms of providing training, technology transfer, best practice sharing etc. The management control was with Japanese and they were allowed to practice their best practices like TQM etc. With changing dynamic environment-which came about by increasing competition, patents expiring, lawsuits etc- the contract between Xerox and FX was continuously

There was a very strong level of integration among management teams of Xerox and FX and continuously cross functional and cross geographical teams were formed to learn. Thus potential source of conflict was taken care of effectively. Disagreements on specific issues were also addressed. Another important reason was the remarkable manner in which FX supported Xerox by developing low end printers and doing reverse innovation which helped Xerox take on competition from cannon. More ever there was complementary sharing of resources. FX was strong in development of better products and hardware while Xerox was in research and software. Very soon FX was contributing 22% of worldwide revenue of Xerox. It was a right combination of American ingenuity with superior skills of Japanese. All the above reasons contributed in keeping the alliance going in a very profitable manner for such a long period of time. . share and solve problems together. This helped strengthen the relationship between them. Kodak. Strong competition and short product lifecycle kept both the partners busy with innovation and keeping the competition away. A culture of sharing and learning was developed between the partners who helped alliance to overcome bottlenecks such as cultural diversity etc. etc. The contracts were also crystal clear in terms of revenue sharing and sharing of responsibilities between the partners.Xerox and Fuji Xerox 2 Nitin Sikri (26/4) & Ram Kiran Dhulipala (31/4) reviewed in a very transparent manner and necessary modifications were done. The managements of both the partners were absolutely aware of changing times and need to change with time to remain competitive in the market. Especially in 70s when Xerox was down. FX came to its rescue.

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