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 studyIdentify the strength and weaknesses of the corporation to supply plan of actionsDeploy strategies to help eliminate the existing problem identified Optimum product design through defined plans of action

Areas Consideration

STRENGTHS

1. Ph.D. Degree holders2. Above-average income earners3. Pioneers

WEAKNESSES

1. Young, idealistic, and aggressive2. Technically- rather than management-

oriented3. Volatile industries

OPPORTUNITIES

1. Market demands2. Technological Innovations3. Related industries

STRENGTH

1. Competitors2. Economy3. Government

Strengths – Opportunities Strategies

Have higher chances on increased research activitiesSufficient funding for research activities and commercializationEstablished prestige

Weaknesses – Opportunities Strategies

Low-cost productsEfficient transactionsCreation of new industries

Threats – Strengths Strategies

Alliances/MergersGovernment support/subsidiesDeregulation

Weaknesses – ThreatsStrategies

Continued and sustained development and growthInnovative strategiesIntegration 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

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

Alternative Course of Action

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 agenciesDevelopment of technological tools and devices Explore unknown areas of interestRegular reviews of documentations and facilities improvementsIncrease satellite offices worldwide