Company Overview:
Xerox is an American company that was founded in 1906 by the inventors Chester Carlson and Harold Gilman. Xerox has manufactured copiers, printers, fax machines, multifunctional computer peripheral devices, and photocopying equipment. The company is headquartered in its namesake city of Rochester, New York. The company has manufacturing operations in more than 80 countries. Let us know about “Xerox Swot Analysis & Competitors”.
Xerox Swot Analysis & Competitors
The company has been a public company since 1960 and was listed on the New York Stock Exchange in 1968. The company’s largest segment is its document management and technology solutions segment, which makes up 31% of sales and includes copiers and printers as well as Xerox-branded document management software. The manufacturing segment includes optical disc drives, laser toner products, and medical products.
Company Strengths:
1. Wide range of product offerings
2. Offering a high level of customer service
3. Employees are held accountable for their actions
4. Company has many new technology offerings
5. Customers are loyal to the company due to its reputation of offering reliable service
6. More cost-effective than other competitors in the market
7. Free information on the internet about their products leads to customer loyalty and leads to future earnings growth.
8. Xerox is a global company, so it has access to more customers around the world than its competitors do, resulting in a higher share value and more customers.
9. Most of their growth is due to emerging markets
10. More cost-effective than the competitors in the market
11. Their copiers are very low in price, which can be profitable because they can sell many more of them.
12. Xerox is currently the largest copier manufacturer in the world with a 44% share of the global market compared to Kodak Corporation’s 12% and Canon Inc.’s 27%.
13. About 75% of their revenue comes from global markets mainly Europe, USA, Canada, Latin America, and Asia Pacific regions.
Weaknesses:
1. Xerox must compete with the other much larger companies in their industry, such as Kodak and Canon, to maintain its position.
2. Xerox has high overhead costs in managing various products and manufacturing plants.
3. Xerox is a huge company with a wide range of products and manufacturing plants spread all over the world, which takes time to distribute products and ensure consistency in quality across all plants.
4. The employment practices of Xerox can be very expensive for the company if they cannot adequately manage them because the employee turnover rate is very high at 20%.
5. Xerox’s competitors’ products cost less and last longer than their own.
6. The benefits package of Xerox is very inexpensive for most workers due to the high unemployment rate in the country, which makes employees think that they can be easily replaced, and most of their employees are not very loyal to the company.
7. Some executives of the company like Riley Pearsall don’t understand the “customer value” concept and hence cannot understand why their customers will choose them over their competitors.
8. Due to the nature of the copier business it is quite risky and hard to predict growth compared to other industries such as technology or semiconductors.
9. Consistent quality of products is needed for Xerox to maintain a loyal customer base.
Opportunities:
1. There is a great potential for the company in emerging markets because there are low levels of technology in most developing countries, and surrounding countries also have similar systems, allowing the product to be easily exported from one country to another.
2. The recent recession has made companies look for methods of cutting costs by outsourcing their services, which could benefit Xerox in this situation due to its global presence and vast offering of products and services.
3. Xerox has a higher brand image than its competitors, Kodak and Canon, which can be used to their advantage with promoting and in turn increasing their market share in the future.
4. Xerox’s research and development in the field of photocopier are much better than its competitors because it employs more people in this field.
5. Xerox has made a lot of improvements to the quality of its copier products in the last few years, which can be capitalized on in the future.
6. Xerox’s dealers and distributors have a lot of opportunities to make more money by showing customers what they need and how it can help them in their daily lives.
7. Xerox is a descendent from the Japanese company Mita, which was bought by Kodak before it went bankrupt, thus giving them a lot of useful knowledge about copiers that other companies don’t have.
8. Xerox has been able to expand its manufacturing facilities in China because the country is not yet very developed and hence has lower overhead costs for each product manufactured in each country.
Threats:
1. Xerox’s wide range of products is a strength but also a weakness because it limits them to focus on one or two categories only, such as office equipment or computers.
2. Xerox is at the mercy of technology because the company does not have any control over it. If their competitors or other companies develop better technology than them, then this could be a serious threat to the company’s future operations.
3. The company has very strong competitors in its industry, who are much bigger than them in size and hold a higher market share than Xerox in their respective categories.
4. Xerox’s brand name was tarnished by E-Hell, which resulted in many customer lawsuits that ultimately led to an expensive settlement against the company for $485 million in cash and $50 million in stock options.
5. The US economy is expected to see significant growth in the next few years, which would mean more competition for Xerox in the future.
6. Xerox’s investment in R&D is not very great compared to the major competitors, which could be a problem for them in the future.
7. The company’s employees are often replaced due to the high employee turnover rate of 20%.
Major Competitors:
1. Kodak Corporation: A large company that owns many subsidiaries that produce photocopiers and other office equipment.
2. Canon Inc.: A Japanese company that produces photocopiers, printers, and medical equipment.
3. Ricoh Company: A Japanese company that specializes in copies of business documents, not original documents (such as Xerox office copier paper).
4. Epson Corporation: An Asian firm that produces high-quality office products.
5. Hewlett-Packard (HP): An American multinational technology company that produces printers, inkjet printers, computers, and other electronics.
6. Fairchild Semiconductor: An American firm that produces semiconductor chips, which are used in a wide range of electronic products.
How Does The Future Look For Xerox?
Now we know about Xerox Swot Analysis & Competitors . Xerox is currently the largest copier manufacturer in the world with a 44% share of the global market compared to Kodak Corporation’s 12% and Canon Inc.’s 27%. About 75% of their revenue comes from global markets mainly Europe, the USA, Canada, Latin America, and Asia Pacific regions. The company’s products are very diverse and include office equipment, medical products, software, services, and copier parts. Xerox has announced an ambitious plan to acquire more than 80% of its revenues from outside of the photocopy business in the next five years. They plan to tap into new markets such as electronics, graphic arts, document management systems, finance/banking,
Xerox has been investing heavily in R&D. The company is currently looking for better ways to reduce costs by outsourcing some of its functions to countries like China where it can use its extensive workforce with less overhead costs compared to the US.
Conclusion:
Now we have learnt about “Xerox Swot Analysis & Competitors”, Despite the recession, Xerox has been able to maintain a strong position in the photocopier industry. However, because of their size, they are prone to risks such as financial difficulties and external pressures from other companies. Also, their main competitors seem to be innovating better products at a faster rate than them. Overall, I would say that Xerox does have a promising future if it can continue to find new ways of growing its business and increasing revenues.
Some Frequently Asked Questions And Answers:
1. Can I get Xerox products in India?
A. Yes, you can. Xerox is now supplying its office supplies in India. You can call them at 9884790323 for more info.
2. Will the new Xerox Copier be compatible with my old copiers?
A: Yes, it will be compatible and will not find any problem with your old copiers and printers.
3. I am looking for some good Xerox Copiers. Which one do I buy?
A: You can get all of them from www.xeroxonlineshop.com
4. What is the difference between Xerox’s copier and Canon’s copier’s new-age technology?
A: Xerox uses heat energy while Canon uses LED lighting technology to copy the documents on their paper copier machine. They are new-age photocopiers which can also read the barcodes on different products so that you don’t have to manually type your data in the machine’s LCD screen just before using it. These days, you can buy goods using digital barcodes instead of checks or money orders.
5. What are the benefits of using Xerox Copiers?
A: The main benefit of using a Xerox copier is that you won’t have to use ink cartridges anymore as it contains laser toner instead. In addition, most copiers don’t require any maintenance and can be used for a long time without any problem.
