Xerox: 106 Years of Innovating and Market Leadership - Research Paper

Introduction

Xerox is an American company that has its operating activities based on the sale of digital print devices, whereby it has achieved success in the copier business. It started operating in 1906, whereby it worked as The Haloid Photographic Company. Over time, it has continued to achieve various milestones; by increasing its operating volume and conquering multiple markets, which has enabled it to become a market leader over time (Owen, 2008). However, multiple corporations have entered the market, which has led to a reduction in its dominance over time. That is a threat to its existence as there is a reduction in the number of customers and profit. For survival, there has risen the necessity for the organization to undertake various activities meant to enhance its competitive advantage. Information technology planning is essential for Xerox to survive the competition that is characteristic of the market on which it operates, which will be through minimizing the competitive pressures by gaining a sustainable competitive advantage.

Is your time best spent reading someone else’s essay? Get a 100% original essay FROM A CERTIFIED WRITER!

Save 25%

Various features characterize the business environment in which the organization operates, which, to a large extent; dictate the level of success that it is capable of achieving through its operations. First is the high degree of competition that the corporation faces for the copier business, whereby it faces stiff competition from organizations such as Kyocera, IBM, and Genpact. These are large multinationals that have powerful brands; which compete at various levels to achieve success in the market by gaining sustainable competitive advantage (Vezmar, 1996). Innovation and creativeness are the other factors that affect the organization; which is because it is in the technology industry; which is characterized by persistent change by the players. Innovation has the effect of encouraging intensive investment in research and development so that better products can be manufactured and have a better return in the market as a result of being better than the competitors.

Dynamic consumer behavior is the other characteristic of the market in which Xerox operates, whereby the preferences of the consumers are ever-changing and are unpredictable. If the tastes of the consumers were predictable, it would have been easy to plan for the commodities produced. However, the preferences keep changing, which makes it challenging for the organization to match its capabilities and preferences of the consumers (Witcher & Butterworth, 1999). Long term planning and product development is a secondary problem that arises from the dynamic nature of consumer tastes and preferences. The other feature of the environment in which Xerox operates is the brand identity, whereby there are major brands that have established themselves over a long period of time, which gives them a competitive advantage over others. According to Fortune, the other organizations, thus, strive to establish reputable brands for them to reap the benefits of a renowned brand (Fortune, 2007). Xerox has been able to address the dynamic consumer behavior through rapid innovation and creativeness; which explains its level of success over time (Trefis, 2019)

Information technology is another factor that has changed the competitive pressures that affect the various operations that are undertaken by Xerox. The rate of technological diffusion is the significant impact that information technology has had on the competitive forces affecting Xerox. As a result, if various developments in information technology, there is a more efficient spread of information among multiple players in the market. There is adequate knowledge circulated about the organization with the best commodity to offer. The more knowledgeable the players in the market are, the more intense the competition is. E-commerce is the other dimension of information technology that has an effect on the level of competition that is being experienced by Xerox. The traditional ways of undertaking business transactions have changed as a result of various players embracing e-commerce. That is whereby there is better interconnectivity among parties, which enhances the connectivity of players. All the above factors have led to intensified competition in the market as consumers have adequate knowledge about the market, which increases pressure on the part of the commodity providers.

Based on the analysis of the competition faced by Xerox, it needs to undertake several adjustments so that it is in a better position to deal with the competition to its advantage. First, it can make public relations activities to improve its reputation in public so that it can enhance the power that is associated with its brand. That will enable it to strengthen its competition with other well-established competitors such as IBM. Opening up new markets by exploring markets that it has not yet taken advantage of is the other undertaking that it can implement to increase its sales and also establish a ready market in the new areas. Enhanced research and development is another way through which Xerox can survive in the digital world. If the organization undertakes better research and innovation, then designs the best commodities before the competitors, it will enjoy the first moreover advantage; which will work to their benefit in the long run (Prescott & Miller 2002). Better customer support is the other way through which the organization can gain a competitive advantage. Another option that Xerox has is to undertake mergers with its competitors to share resources and reduce competition. With the recommendation of merging with HP (Sergei, 2019) Handling the complaints and concerns of their buyers will have the impact of improving the reputation of the organization. When this addition to the other recommendations, it will have a significant effect on the success of the organization, which will enhance its survival in the digital world.

It is evident that the nature of competition Xerox faces in the market it is operating is high, which necessitates adequate planning of its operations. Given the fact that it is working in the Information Technology business, one of the critical issues it has to consider is innovation and creativity, which will guarantee it a sustainable competitive advantage against the other organizations. Brand power is the other issue because it competes with well-established organizations that enjoy the convenience of having popular brands worldwide. New markets, in terms of geographical location as well as consumer types, is also an undertaking that can help the organization better its competitive situation. With the above factors considered, the organization will be in a better position to counter the high degree of competition in the market it is operating.

References

Owen, D. (2008). Copies in Seconds: How a Lone Inventor and an Unknown Company Created the Biggest Communication Breakthrough Since Gutenberg--Chester Carlson and the Birth of the Xerox Machine. Simon and Schuster. Retrieved from https://go.galegroup.com/ps/anonymous?id=GALE%7CA123754204&sid=googleScholar&v=2.1&it=r&linkaccess=abs&issn=03633276&p=AONE&sw=w

Prescott, J. F., & Miller, S. H. (Eds.). (2002). Proven strategies in competitive intelligence: Lessons from the trenches. John Wiley & Sons. Retrieved from https://books.google.co.ke/books?hl=en&lr=&id=9C73gea8E4MC&oi=fnd&pg=PR7&dq=Prescott,+J.+F.,+%26+Miller,+S.+H.+(Eds.).+(2002).+Proven+strategies+in+competitive+intelligence:+Lessons+from+the+trenches.+John+Wiley+%26+Sons.&ots=c3g8pgWULU&sig=XHlFzpYntzpvrEmQSNVtvi80z9I&redir_esc=y#v=onepage&q&f=false

Sergei. K (2019, November 26) Spurned Again By HP; Xerox Prepares To Make A Hostile Buyout Bid. Retrieved from:https://www.forbes.com/sites/sergeiklebnikov/2019/11/26/spurned-again-by-hp-xerox-prepares-to-make-a-hostile-buyout-bid/#6934afda1522

Trefis. T (2019, October 25) Explaining The Big Rally In Xerox Stock This Year. Retrieved from: https://www.forbes.com/sites/greatspeculations/2019/10/25/explaining-the-big-rally-in-xerox-stock-this-year/#e14893e441d9

Vezmar, J. M. (1996). Competitive intelligence at Xerox. Competitive intelligence review, 7(3), 15-19. Retrieved from https://onlinelibrary.wiley.com/doi/abs/10.1002/cir.3880070305

Witcher, B., & Butterworth, R. (1999). Hoshin kanri: how Xerox manages. Long Range Planning, 32(3), 323-332.Retrieved from: https://www.researchgate.net/profile/Barry_Witcher/publication/222449824_Hoshin_Kanri_How_Xerox_manages/links/5a1dcb98aca272cbfbc007d8/Hoshin-Kanri-How-Xerox-manages.pdf

Xerox ranks high in Fortune's "World's Most Admired Companies" list for 2017, taking third place in Computers. (2017). Retrieved from https://www.xerox.com/en-us/insights/fortune-most-admired-companies