"Xerox and Fuji Xerox" - Case Study

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“Xerox and Fuji Xerox” - Case

Study
What role did FX play in Xerox's
global strategy?
• R&D partnership.
• TQC initiator.
• A manufacturing and marketing unit for the Asian market.
• Transfer of production facilities to Fuji Xerox.
• Competitor watchdog.
• "It's small, but it's a Xerox".
Change in role after 1990
• Established Xerox International Partners to sell low-end printers in
North America and Europe.
• R&D partner for Xerox Corporation.
• Expansion of Fuji Xerox to Asia-Pacific market.
• Acquired China/Hong Kong Operations from Xerox Corporation
in 2000.
• 75% share held by Fuji Photo and 25% share by Xerox.
Performance measures
• Low end copiers – FX was the source to Xerox and Rank Xerox
• Fx grew at a faster rate than Xerox
• Net earnings of Xerox grew from 5% to 22% ( 1981 -1988)
• Sales contribution by FX – Grew from $32 million to $620 million (1980 – 1988)
• 10 Series developed by FX helped Xerox win back market share
• The leadership through Quality program enabled in achieving goals
 Increased Market research and competitive benchmarking
 JIT manufacturing to decrease cost
 Faster product development
 Development of state of art technology
 A devotion to quality in all areas
Key Success Factors in the alliance
• The trust built up between the companies.

• 50-50 ownership structure between Xerox and FX.

• Total Quality Control Program initiated in both the firms.

• Continuous rising capabilities of Xerox Group’s competitors, particularly


Canon, thereby leading to their growth.

• Development of the 10 series by FX helped Xerox gain its market share


thereby strengthening the alliance.

• Flexibility in the contract agreement between both the firms.

• Effective collaboration and sharing of technology between the firms.


Changes after 1990
• 1990 - Acquires management and property rights of four Asia-Pacific
countries from Rank Xerox.
• 1991 - Jointly with Xerox Corporation, establishes Xerox International
Partners to sell low-end printers in North America and Europe.
• 1998 - Acquires full ownership of Fuji Xerox Korea Co., Ltd.
• 2000 - Acquires China/Hong Kong Operations from Xerox Corporation.
• 2001 - Consolidated to Fuji Photo Film Group with equity increase to
75% owned by Fuji Photo Film and 25% by Xerox Corporation.
• 2006 - With the establishment of FUJIFILM Holdings Corporation; FX
becomes affiliated with the new company.
Q&A

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