Xerox: Adapting to the Turbulent Marketing Environment Case Study

952 Words Dec 1st, 2014 4 Pages
Xerox: Adapting to the Turbulent Marketing Environment
Q1 & Q2.) What microenvironmental/macroenvironmental factors have affected Xerox’s performance since the late 1990s?

For many decades after its inception Xerox as a company faithfully understood its own identity, and was highly successful in the photocopying industry that it created. Around the late 1990’s a shift in the industry began to occur, as business transitioned away from the need for exclusively physical copies of documents, moving many of these files into digital databases. The internal culture of Xerox did not entirely comprehend the implications of these changes as they began to occur and subsequently did not adapt to meet their clients new needs fast enough. The
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In this instance considered strategic planning allowed the company to identify assets –notably, IT service company Affiliated Computer Services (ACS)- that could provide the company with significant growth opportunity. The acquisition of ACS specifically allowed Xerox to come into possession of increased IT capabilities, services and invaluable established networks with a range of clients who had implemented ACS systems. This, along with other key acquisitions, allowed the company to maintain its momentum while being exposed to a highly volatile external environment. During this period without this aggressive value creation motivated business strategy, a contraction of the company seemed likely.

Q3.) By focusing on the business services industry, has Xerox perused the best strategy?

By focusing on the business services industry Xerox has systematically acknowledged that the best way to add value to their product is through supplying integrated solutions to their clients, in contrast to simply providing the hardware for a task. The supply of business services requires the company to maintain systems which are highly competitive in the face of perpetually improving technologies and intense competition from rivals. However the scale of the market segment and the potentially lucrative contracts available make it a highly appealing prospect. Luke
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