The structure of the joint venture between Xerox Corporation and Fuji Xerox became an issue in the beginning of the 90? s. The growth of the competence from Canon, Richoh and Minolta in the low-end copiers and Kodak and IBM in the high-end has led them to lose market share. The growth of the Asian and South Pacific Market as well as the necessity of Fuji Xerox to be more independent becomes a challenge for the managers of the Xerox Group.
We need to find the best practices in product designs, manufacturing, and management ideas to continue this synergy and fight against the growing competence. To understand our situation in this case we most analyze how Fuji Xerox became important for Xerox Corporation. In the beginning of the 60? s Fuji Xerox started as a reseller for xerographic products in Japan and Fuji Photo Film was the manufacturer it was a 50/50 joint venture between FX and RX this last one with 50% of profits. Xerox Corporation itself was to have no direct relationship with FX.
This relation changes when FX started to develop their own manufacturing capabilities, XC leave them a small budget of R&D and FX Start to create their own models. However competition takes a place in the Japanese market and to counteract it FX launched the “Total Quality Control Program” (TQC) by looking in the customer needs (reduction of costs, elimination of waste and new technologies) they introduce to the market the FX3500 at half price of any comparable, with half number of parts.
The Term Paper on Segmentation And Target Market Assignment
Unilever is an international conglomerate consisting of over 400 brands in several different markets. From creating brands to mergers with other companies, Unilever is dominating many markets by offering thousands of products to different consumers. This research will discuss the history, market segmentation, and the target markets of Unilever. History In the 1890’s, William Hesketh Lever ...
In the other side of the world (United States and Europe) XC was loosing market share and revenues in all their segments by the entrance of new competitors in the market. This crisis opens the opportunity for XC to start selling products abroad first to Rank Xerox and then to XC, creating competitive advantage for the corporation due to the pricing that XC could provide. In the beginning of the 80? s Xerox? s launched a company wide initiative program “The Leadership Through Quality” based on the experience of FX, with incredible results in efficiency, quality and reduction of costs.
By the end of the 80? s FX represents 22% of earnings for Xerox Group selling much more products to XC than the opposite, during this decade the sales from FX to RX and XC grew from 32 Million to 620 Million , the 94% of the design for XC and RX came form Japan this and the capacity of produce with cheaper prices, gives to FX more bargaining power in the Group decisions. After the understanding of the factors, now we have to organize ideas and ask a question: Does this create value in terms of partnership for the joint venture?
This partnership gives mutual benefits and creates value in the long term for the corporation. We quote the words of Mr. Bill Spencer, vice president of technology “Xerox has excellent basic research and software capabilities, and Fuji Xerox is good at development and hardware design, together we should be able to develop better products quicker than alone” . Fuji Xerox would not have been created without Xerox Corporation but they benefits from Fuji Xerox capabilities to develop and manufacture new products so rapidly.
Moreover we have to analyze another question: The organizational infrastructure is appropriated for this partnership, should Xerox Group give more privileges to Fuji Xerox? The market and our main competitors show us that Japanese companies tend to be able to create better designs in the low and mid-end segments and FX is well positioned to take advantage of this trend. XC should focus on the high-end segment and give more freedom and access to FX. In order to avoid risks and Hold up problems XC should focus more attention in the capabilities of the design and develop of new products.
We also need to take in the account the potential that Fuji Xerox haves in the South Pacific markets (China and Australia the most important) Xerox Company should analyze more deeply the idea of leave to FX the control on this market. Making a comparison with the current process, it seams to be more profitable for the group to produce and deliver products for this market through Fuji Xerox than from RX as now being done. The last question to asses would be: Is there conditions for the sustainability of the joint venture?
The Business plan on Marketing Plan For Hypothetical Product-Based Company
Executive Summary This report contains a marketing plan for a new and affordable repair shop in the San Antonio market. The new shop will be launched in the market and will tend to all types of customer’s needs, such as; tune-ups, engine diagnostic (free), oil change, engine cleaning, will be an exclusive high end smart watch. The gold and platinum watch with marble dial will be launched. The use ...
We can see by the increase of sales and processes improvement that this partnership could promote stability in the long term, but we should focus in organize the internal problems the most important issue is to align interest of the companies. Therefore we should align which markets should Fuji Xerox can serve and agree on who will do what, after this agreements are clear there will be no more friction between the companies and they can be focus on working against the competition.
Xerox had come to recognize Fuji Xerox as a critical asset and we get to the conclusion that Fuji Xerox does create value. Xerox Should gives more autonomy in order to compete directly with our principal threat Canon who is introducing twice as many products than Xerox with a lower investment. Xerox should focus on the high-end segment and impulse Fuji Xerox by leaving them the responsibility of the mid and low-end products. Fuji Xerox most sells outside Asia and haves to be very careful about the Japanese companies and their new strategies processes and manufacturing.
