The Xerox Downfall

By – Nitish Sinha

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XEROX AT A GLANCE

Founded in 1906, Rochester, NY, US.headquartered in Norwalk,Connecticut (moved from Stamford, Connecticut in October 2007..PARC (Palo Alto Research Center Incorporated) founded in 1970. Incorporated in 2002 as an independent centre.Fuji Xerox was established in 1962 as a 50:50 partnership with Rank Xerox.

PRESENTKey people -Ursula Burns, CEO -Anne M. Mulcahy, ChairmanEmployees 53,600 (2009)9,400+ patents(2009)$880 million spent on R&D (2009)Xerox locations-160 countries.On September 28, 2009, Xerox announced the intended acquisition of Affiliated Computer Services for $6.4 billion.

STRENGTHS

Strong corporate brand.

Efficient working solutions for companies worldwide.

Strong environmental focus.

The organization has a reputation for innovation and high quality management.

Qualified suppliers.

Successful implementation of benchmarking.

WEAKNESS

PARC (Palo Alto Research Center Incorporated) became independent centre for commercial innovations.

Fuji Photo Film Co. raised its stake in the venture to 75% in 2001.

Operates in an ever changing, fast pace market dynamic.

Less focus on product features.

Fell behind HP and Kodak.

Xerox present headquarterNorwalk, Connecticut, US

THREATS

Competitors- HEWLETT-PACKARD, CANON

INC,RICOH COMPANY LTD.

Financial constraints.

Growing pressure on companies to become

neutral, equiefficient.

What factors account for Xerox’s continuing problems? The downgrade

Peter McColough’s (CEO) failed to commercialize new technology .

Failing to hire the right people for essential positions.

McColough’s reduced focus on Xerox business.

Misguided priorities approved by CEO.

Always beat up on suppliers.

Shrinking Profits

Violations of the “GAAP”. (Generally accepted accounting principles )

Auditing by KPMG.