Fuji Xerox

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Synopsis (I)
Many of the international alliances being formed today are still too young for us to evaluate their full impact. The case of Xerox and Fuji Xerox gives us a unique opportunity to trace the evolution of such an alliance over a long period of time. We can learn a lot from this experience, and try both to avoid Xerox’s mistakes and copy Xerox’s success.


While this case is about a particular type of alliance—a separate enterprise owned by Xerox and Fuji Photo Film— it also contains elements of other types of alliance. The relationship between Xerox and Fuji Xerox, for example, is itself managed through a series of technology and marketing contracts, organizational
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1. Performance of the alliance before 1990


1. Performance and the alliance before 1990 Evaluation of success Measure of the success Success measure vs. success factors Key success factors Transition


An effective question with which to begin the evaluation of the alliance is: “What was the role of Fuji Xerox in Xerox’s global strategy before 1990?”


Key points
1. Fuji Xerox enables Xerox to sell in the Japanese market, as the government requires a joint venture as that time. This point highlights the role of the government policy in alliance strategies. 2. Because Fuji Xerox was driven by the needs of the Japanese market, it developed capabilities and products that were different from those of its American parent, and that later turned out to be valuable. Simply put, it developed small copiers, while Xerox ignored this segment.

3. Later on, Fuji Xerox provided Xerox with a “window” on the Japanese competition—their technologies, the features they were working on, their strategies, and so on. Due to contacts between engineers and general publicity in Japan surrounding new products, Fuji Xerox would learn about new developments long before they were embodied in exports to U.S.. 4. Fuji Xerox benefited directly from the technologies being developed in related industries in Japan, just as its local competitors.

5. Fuji Xerox also helped Xerox learn new management approaches, I.e. Total Quality Management. This
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