the rise and fall of xerox corporation due to introduction of now companies.

1. How Xerox lost and regained international competitiveness and
became a leader in information technology

3.  INTRODUCTION
SUMMARY OF CASE STUDY
ANALYSIS
INITIAL CONDITIONS
Xerox as a monopoly
Price demand curve
Elasticity
CONDITIONS AFTER THE ENTRY OF CANON
The changed market structure
The substitution effect caused by canon
THE ECONOMIC TERMS USED IN THE ANALYSIS
CORRECTIVE MEASURES TAKEN BY XEROX
PRESENT CONDITION
CONCLUSION

4. ABOUT XEROX :-
 Xerox is an American multinational document management corporation that
produces and sells a range of color and black-and-white printers,
multifunction systems,
photocopiers,
digital production printing presses,
related consulting services and supplies
 Xerox is headquartered in Norwalk, Connecticut
 Xerox Corporation was the first to introduce a printing machine in 1959,
based on its patented photographic technology.
 Xerox India, formerly Modi Xerox, is Xerox's Indian subsidiary derived from
a joint venture formed between Dr. Bhupendra Kumar Modi and Rank Xerox
in 1983. Xerox obtained a majority stake in 1999 and aims to buy out the
remaining shareholders

5. ABOUT canon :-
 Canon Inc. is a Japanese multinational corporation specialized in the
manufacture of imaging and optical products, including cameras,
camcorders,
photocopiers,
steppers,
computer printers.
 Its headquarters are located in Ōta, Tokyo, Japan.
 In 1971 Canon introduced the F-1, a high-end SLR camera, and the FD lens
range. In 1976 Canon launched the AE-1, the world’s first camera with an
embedded micro-computer.
 During its early years the company did not have any facilities to produce its
own optical glass, and its first cameras incorporated Nikkor lenses from
Nippon Kogaku K.K.

6. Xerox was the first corporation to introduce a printing machine in 1959, based on
its patented
photographic technology. The invention was revolutionary
 Until 1970, it had no competitors, so it didn’t pay attention to product quality,
customer satisfaction
and reduction in manufacturing cost. Xerox was a price setter until then.
 Xerox concentrated on the middle and high ends of the market that is, it sold its
product to only large
companies.
 Canon came into picture in 1970 but was not taken seriously by Xerox.
Until 1979, Canon started growing its market targeting the common people that
is, the low end of the
market.

7. Canon used better technology and improved the quality of the printing
machines. It also paid attention
to customer satisfaction.
Xerox started losing its shares and saw it as a threat to its profits. Xerox was
no more the dictator of the
market.
Xerox started implementing steps to regain its market and did it successfully
and regained its position in
the 1990s.
Presently, both Xerox and Canon are having a neck to neck competition.

8. initial condition :-
Before the arrival of Canon, Xerox was a monopoly as it was the only
corporation to manufacture
photocopy machine.

9.  It was a price setter.
 But it didn’t impose
any market barriers.
 It didn’t pay attention
to better quality, low
manufacturing cost and
customer satisfaction.
 As can be seen from the graph, the price elasticity is more than unitary
elastic since there is little decrease in quantity demanded for a increase
price.

10. condition after the arrival of Canon :-
 Canon launched its first photocopy machine in 1970.
 At that time, XEROX was at the driver’s seat of the market and controlled
almost whole of the market.
 Xerox was not prominent at the low end of the market that is, it didn’t have
good share in the small firms.
 Canon targeted the low end of the market and made photocopiers at low cost.
 Gradually, Canon started acquiring the middle and high ends of the market.
 Their low cost better quality photocopiers attracted majority of the market.

11.  The firms now had a SUBSTITUTE to Xerox and in this way, Xerox lost its
market power.
 Gradually, Canon started acquiring the middle and high ends of the market.
 Their low cost better quality photocopiers attracted majority of the market.

12. Canon steadily occupies the market

13.  The SUBSTITUTION EFFECT was visible now.
Smart management by Canon and versatile planning helped
them to gain significant market.
 As the price of the
Photocopiers manufactured
By Canon reduced, the demand
for photocopiers manufactured by
XEROX also reduced.

14.  The market power that XEROX enjoyed was snatched from it.
 XEROX was no more the MONOPOLY.
 The photographic printing market turned into an open battle
ground for Xerox, Canon and new entrants like HP.

15.  The concept of MARKET STRUCTURE.

16.  The concept of DEMAND & SUPPLY.
 SUBSTITUTION EFFECT on demand of the preferred goods.

17.  Implementation of Quality Control Department.
 Adoption of Management by Objectives i.e, employee involvement.
 Reduction of cost on suppliers and inventories due to adoption of
Group Technology.
 Constant Benchmarking.

18.  Presently, many organizations have come into the photographic
printing market due to a large demand of photocopiers and good
returns.
 Though XEROX and Canon have the highest shares till date, the
other organizations are catching up fast especially HP and EPSON.

19.  It is clear that to remain competitive in today’s globalized world
requires constant alternation to the competition and continuous
innovations on the part of the firm
 The theory of “SURVIVAL OF THE FITTEST” holds good in this
non-biological world known as the MARKET.