1) What microenvironmental factors have affected Xerox’s performance since the late 1990s?
The microenvironmental factors are:
a) Xerox as a company had financial problems. There was huge churn in stocks & revenue decrease due to rapid change towards digital environment.
b) Being dominant in the photocopying industry, Xerox has been focusing on perfecting their copier machines and failed to adapt change in market demand which has started to move towards digital technology. Unfortunate for Xerox, their competitors like Sharp, Canon and Ricoh have managed to meet customer demand with digital document management systems & solution, by then it was too ...view middle of the document...
Before they had developing the new product, they had held seemingly endless customer focus group. Then by implement the new strategy, Xerox’s revenue, profits and stock priced begin to show sign of recovery. Besides that, we can see the development of the company by introducing more than 130 innovative new product and straightly has a good relationship with new customer and new competitors.
Regarding on the business service industry, the Xerox is being developed successfully by concentrating on customer demand which is they wanted to easier, faster, and less costly ways to share document and information. This demand made the company to do some innovation by stopped making standalone copier and begin billing itself as the world leading document management technology and service. Instead of selling copier to equipment to purchase manager, this company also selling document management system to high level information technology (IT) manager.
The company pursue to be well-known as the iconic of “copier company” become with new identity as a document management company with more service are offered such as management consulting and outsourcing service, operate in house print shops or mailrooms, analyze how employees can most efficiently share document and knowledge, and build internet based processes for person alizing direct mail, invoices and brochures. These new product have allowed to supply solution to clients, not just concentrate on hardware only.
4) What alternative strategy might Xerox have followed in responding to the first signs of declining revenues and profits?
An alternative strategy might Xerox have followed in responding to the first signs of declining revenues and profit, outsource- An often criticized and unpopular move, outsourcing was critical to Xerox’s cost-saving efforts. Burns oversaw the process in a way that preserved quality while achieving the desired cost benefits. With the restricting of manufacturing, Xerox’s workforce dropped from 100,000 employees to 55,000 in just four years. And she did so with the blessing of Xerox’s employee union after convincing the union that it was either lose some jobs or have no jobs at all. This and other efforts returned Xerox to profitability within a few years. Xerox renewed its focus on the customer.
Xerox had renewed its focus on the customer. Xerox had always focused on copier hardware. Before developing new products, Xerox researchers held seemingly endless customer focus groups. Xerox was discovering that understanding customers is just as important as understanding technology. What Xerox learned is that customers didn’t want just copier; they want easier, faster, and less costly ways to share documents and information. The company had to rethink, redefine, and reinvent itself. Xerox created new customer relationships, as well as new competitors
5) Given Xerox’s current situation, what recommendations would you make to Burn’s for the future of Xerox?