Case study

How Xerox lost and regained international competitiveness and became a leader in information technology

Group members :- Debojyoti Bhattacharya Abhijit Kumar Sahu Santosh Kumar Rahul Kumar Jha Akram Raza

TABLE OF CONTENTS INTRODUCTIONSUMMARY OF CASE STUDYANALYSIS

INITIAL CONDITIONSXerox as a monopolyPrice demand curveElasticityCONDITIONS AFTER THE ENTRY OF CANONThe changed market structureThe substitution effect caused by canon

THE ECONOMIC TERMS USED IN THE ANALYSISCORRECTIVE MEASURES TAKEN BY XEROXPRESENT CONDITIONCONCLUSION

INTRODUCTIONABOUT 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

INTRODUCTIONABOUT 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.

summaryXerox 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.

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.

summary

Analysisinitial condition :-Before the arrival of Canon, Xerox was a monopoly as

it was the only corporation to manufacture photocopy machine.

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.

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.

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.

Canon steadily occupies the market

The SUBSTITUTION EFFECT was visible now.

Smart management by Canon and versatile planning helped them to gain significant market.

As the price of thePhotocopiers manufacturedBy Canon reduced, the demandfor photocopiers manufactured by XEROX also reduced.

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.

Economic terms used in the analysis The concept of MARKET STRUCTURE.

The concept of DEMAND & SUPPLY.

SUBSTITUTION EFFECT on demand of the preferred goods.

Corrective measures taken by xerox 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.

Present conditions 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.

conclusion 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.