FALIURE OF XEROX

PRAKRITI SANGANERIA
BBA-3B
MARKETING MANAGEMENT
28905021093
 INTRODUCTION
Xerox was founded in 1906, Rochester, NY,US
Headquarters in Norwalk, Connecticut(moved from
Stamford in Oct,2007)
PARC was founded in 1970.
Xerox merged with Fujifilm in Japan for more
exposure in the Asian market. Fuji Xerox was
established in 1962 as a 50:50 partnership with Rank
Xerox.
Beginning in the 1970s, Xerox was introduced with
some new competition from IBM and Kodak. 
HURDLES FACED BY XEROX
 Xerox faced intense competition from both the US and
Japanese competitors(Canon, HP, Toshiba, etc.)
 The average manufacturing cost of copiers in Japanese
companies was 40-50% that of Xerox
 The market share fell from 96% to 45% in the same period
 Xerox suffered from its highly centralized decision-making
process
 Its operating cost was high and were of inferior quality in
comparison.
 Xerox really couldn’t come up with a clear partnering
strategy. They tried to sell computers with Olivetti(!)
instead of AT&T. 
WHAT HAPPENED?
The reason why Xerox is essentially not heard of anymore
is simple: It forgot about its brand. When Xerox was first
created, their mission was easy for consumers to
understand: Make it easier for businesses to communicate
information. Somewhere along the way, their vision
became muddled.
Xerox’s major downfall came in 1981 when they
introduced the Xerox Star, a workstation produced with
the sole purpose of managing documents was placed on
the market for a whopping $16,000. Now, when this is
compared to IBM’s PC for business that was selling for
$1,600, it’s easy to guess which brand sold more. 
To make matters worse, Xerox eventually decided to
move into insurance and financial services which is
a complete 180 from what they began with. 
They then took on the burdens of being in
collaboration with E-Z Pass, automated traffic
tickets, and even Medicaid.
Xerox skipped innovation and just went straight to
being a completely different company. The worst came
when Xerox was sued for fraud in 2014 by Texas its
mismanagement of their Medicaid program. Then, in
2016, Xerox was under fire again for the mishandling
of the Medicaid for New York.
REASONS OF FALIURE
Xerox failed primarily because of the way the corporation
funded its subsidiaries, and because of this Bob Adams,
who was in charge of the Xerox Systems Group.
Xerox workstations and network stack. The Xerox sales
organization’s most technically sophisticated personnel
sold the million dollar laser printers to institutions. They
simply refused to sell $7000 workstations and $3000
printers + network hardware and software instead. Adams
could not control the compensation plan for this sales
force. They had no incentive to work hard for him.
Xerox workstations had a crappy disk subsystem that
was prone to failure. Its 80MB hard drive often had to be
‘scavenged’, a process that would take half a day.
Xerox bet against Intel and against decentralized
computing in general. Therefore its Interpress standard
was not adopted as widely as Postscript. Their investment
in DEC subsystems for their high profit margin printers
rather doomed them. They did not compete on the very
high end of printing systems like Mergenthaler, nor did
they compete on price at the low end against Canon,
Epson, Brother, etc.
Xerox was late in adopting surface mount technology to
its circuit board manufacturing facilities.
 SOLUTIONS …
Increase the employee morale and have a good leader
as Thomas did not have the trust of the organizational
members and destroyed the morale
Finding options to increase the revenue and
minimize cost to recover the negative net incomes.
Consider a merger with other office manufacturers
like HP, Canon. This will improve the reputation,
financial stability of the company-cost savings,
increased share value, easy financing.
COMEBACK OF XEROX
 Xerox said it plans to “stand up” three separate businesses
in software, financing and innovation by next year  to
provide greater focus, flexibility, and visibility., though it
has not determined a corporate structure for them.
 According to John Visentin, The revenue trajectory and the
market opportunity that they see in these three areas gives
them confidence to stand them up as a separate business.
 To become a separate business it will allow each area to be
more focused and flexible in responding to the demands of
the market. They are working to identify a long-term
structure for each of these businesses which may include
the use of the holding company structure for finance and
innovation.
 Additionally, Xerox said its acquisition of CareAR, an
augmented reality business that offers live virtual assistance
technology, will also part of that business.
  Xerox said it will launch a $250 million venture capital fund to
invest in startups and early- to mid-stage growth companies that
are focused on IT software services and artificial intelligence.
 To drive the company’s enterprise-wide transformation
programme, Xerox announced Project Own It. This aims to
simplify its business, improve operational efficiency and
establish a culture of continuous improvement.
 Xerox developed BEC to integrate benchmarking with the
company’s overall strategies that helped it determine the cause
of success or failure of the quality process and identify the
key success factors.
BENEFITS OF
BENCHMARKING
 Increase in the number of satisfied customers
 Defects reduced by 78 per 100 machines
 Customer complaints declined
 Service response time reduced by 27%
 Financial performance improved
 Inventory costs reduced by two-thirds
 Marketing productivity increased by one-third
 Distribution productivity increased by 8-10%
 Increased product reliability
 Decrease in labour costs
 Improved sales from 152% to 328%
BIBLIOGRAPHY
 https://quocirca.com/
 https://www.crn.com/
 https://cacm.acm.org/
 https://www.nytimes.com/
 https://www.technologyreview.com/
 https://www.slideshare.net/
 http://www.bmmguru.in/
 https://fdocuments.in/
 https://duplicatingsystems.com/
 https://www.quora.com/Why-did-Xerox-fail
 https://www.forbes.com/