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Xerox Case Study Analysis Essay

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Xerox Case Study Analysis

Xerox's "Book In Time" is a revolutionary product, presenting some new opportunities for the company. It is simply a matter of costs. The Book-in-Time equipment allows for a publishing company to produce a 300-page book for $6.90, something which could have been previously reached only for lots larger than 1,000 copies. A significant decrease in publishing costs, given the fact that these cover up to 20 % (including the paper and binding the book), would create the possibility of an increased profit margin.
Book-In-Time solution provided by Xerox is one of the most efficient solutions for publishing companies running on demand for short-run books. The advantage gained by larger publishing and printing…show more content…
Major advantage with this option is the fact that Xerox operates in the market it fully knows, dominates and controls. As a market leader, having gained clear edge over main competitor IBM, Xerox can consolidate its position with the introduction of innovative new product "Book-In-Time solution" that could significantly reduce the publishing costs.
Additional advantage with this option we see is that, as SteenBurg laid down the facts, this option provides a real synergy for the company, integrating several pieces into a significant system and allowing the company to gain more rather than operating them separately. Importantly, unlike other very successful products of Xerox, Book-In-Time solutions fits on a specific niche, operating most efficiently only for run lengths 1,000 or less. But, based on Table-D details, short-run digital printer happens to be economical beyond run lengths of 350 or more assuming that reductions in cost are uniformly distributed between run lengths of 100 and 500 (See Appendix – III for sweet point for run lengths).
The second option involves entering the book production business. But, its potential is unlimited. Here we are dealing with huge market consisting significant figures of 50,000 new titles and 1,500,000 repeat titles a year. Moreover, the market for on demand and short run books is extended beyond the life cycle of normal book. This makes market interesting in terms of extent it can expand to.
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