Rise and Fall of Xerox

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the rise and fall of xerox corporation due to introduction of now companies.

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Rise and Fall of Xerox

  1. 1. How Xerox lost and regained international competitiveness and became a leader in information technology
  2. 2.  INTRODUCTION SUMMARY OF CASE STUDY ANALYSIS INITIAL CONDITIONS Xerox as a monopoly Price demand curve Elasticity CONDITIONS AFTER THE ENTRY OF CANON The changed market structure The substitution effect caused by canon THE ECONOMIC TERMS USED IN THE ANALYSIS CORRECTIVE MEASURES TAKEN BY XEROX PRESENT CONDITION CONCLUSION
  3. 3. ABOUT XEROX :-  Xerox is an American multinational document management corporation that produces and sells a range of color and black-and-white printers, multifunction systems, photocopiers, digital production printing presses, related consulting services and supplies  Xerox is headquartered in Norwalk, Connecticut  Xerox Corporation was the first to introduce a printing machine in 1959, based on its patented photographic technology.  Xerox India, formerly Modi Xerox, is Xerox's Indian subsidiary derived from a joint venture formed between Dr. Bhupendra Kumar Modi and Rank Xerox in 1983. Xerox obtained a majority stake in 1999 and aims to buy out the remaining shareholders
  4. 4. ABOUT canon :-  Canon Inc. is a Japanese multinational corporation specialized in the manufacture of imaging and optical products, including cameras, camcorders, photocopiers, steppers, computer printers.  Its headquarters are located in Ōta, Tokyo, Japan.  In 1971 Canon introduced the F-1, a high-end SLR camera, and the FD lens range. In 1976 Canon launched the AE-1, the world’s first camera with an embedded micro-computer.  During its early years the company did not have any facilities to produce its own optical glass, and its first cameras incorporated Nikkor lenses from Nippon Kogaku K.K.
  5. 5. Xerox was the first corporation to introduce a printing machine in 1959, based on its patented photographic technology. The invention was revolutionary  Until 1970, it had no competitors, so it didn’t pay attention to product quality, customer satisfaction and reduction in manufacturing cost. Xerox was a price setter until then.  Xerox concentrated on the middle and high ends of the market that is, it sold its product to only large companies.  Canon came into picture in 1970 but was not taken seriously by Xerox. Until 1979, Canon started growing its market targeting the common people that is, the low end of the market.
  6. 6. Canon used better technology and improved the quality of the printing machines. It also paid attention to customer satisfaction. Xerox started losing its shares and saw it as a threat to its profits. Xerox was no more the dictator of the market. Xerox started implementing steps to regain its market and did it successfully and regained its position in the 1990s. Presently, both Xerox and Canon are having a neck to neck competition.
  7. 7. initial condition :- Before the arrival of Canon, Xerox was a monopoly as it was the only corporation to manufacture photocopy machine.
  8. 8.  It was a price setter.  But it didn’t impose any market barriers.  It didn’t pay attention to better quality, low manufacturing cost and customer satisfaction.  As can be seen from the graph, the price elasticity is more than unitary elastic since there is little decrease in quantity demanded for a increase price.
  9. 9. condition after the arrival of Canon :-  Canon launched its first photocopy machine in 1970.  At that time, XEROX was at the driver’s seat of the market and controlled almost whole of the market.  Xerox was not prominent at the low end of the market that is, it didn’t have good share in the small firms.  Canon targeted the low end of the market and made photocopiers at low cost.  Gradually, Canon started acquiring the middle and high ends of the market.  Their low cost better quality photocopiers attracted majority of the market.
  10. 10.  The firms now had a SUBSTITUTE to Xerox and in this way, Xerox lost its market power.  Gradually, Canon started acquiring the middle and high ends of the market.  Their low cost better quality photocopiers attracted majority of the market.
  11. 11. Canon steadily occupies the market
  12. 12.  The SUBSTITUTION EFFECT was visible now. Smart management by Canon and versatile planning helped them to gain significant market.  As the price of the Photocopiers manufactured By Canon reduced, the demand for photocopiers manufactured by XEROX also reduced.
  13. 13.  The market power that XEROX enjoyed was snatched from it.  XEROX was no more the MONOPOLY.  The photographic printing market turned into an open battle ground for Xerox, Canon and new entrants like HP.
  14. 14.  The concept of MARKET STRUCTURE.
  15. 15.  The concept of DEMAND & SUPPLY.  SUBSTITUTION EFFECT on demand of the preferred goods.
  16. 16.  Implementation of Quality Control Department.  Adoption of Management by Objectives i.e, employee involvement.  Reduction of cost on suppliers and inventories due to adoption of Group Technology.  Constant Benchmarking.
  17. 17.  Presently, many organizations have come into the photographic printing market due to a large demand of photocopiers and good returns.  Though XEROX and Canon have the highest shares till date, the other organizations are catching up fast especially HP and EPSON.
  18. 18.  It is clear that to remain competitive in today’s globalized world requires constant alternation to the competition and continuous innovations on the part of the firm  The theory of “SURVIVAL OF THE FITTEST” holds good in this non-biological world known as the MARKET.

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