Xerox and Fuji Xerox

psalwan@iimidr.ac.in

Question 1

• What were the contributions of Fuji Xerox ?How did these contributions increase over time?

Question 2

• What were the principle reasons behind Fuji Xerox’s performance ? Key Success factors ?

Question 3

• How did the organization of the relationship contribute to the success ? ( Ownership structure , contracts and personal relations )

Question 4

• Consider the options in Exhibit 11 . Which would you recommend and why

A. Independent and overlapping

Act as two separate companies serving the world market, with some coordination on business direction and strategy. No geographic constraints.

FX

XC

XC FX

B. Independent and separate

Concentrate efforts on licensed territories for core products, with multinational business as required

MARKETING

Today

C. Separate with exceptions

Same as B, but with joint or overlapping activities across territorial boundaries on case by case basis.

FXXC

XC

FX

D. Coordinated global product mandates

Worldwide and exclusive responsibility for products or product ranges manufactured under special licenses.

XC/FX

MARKETING

Future

Printers in USA

A. Independent

Each pursues own interest and becomes self-sufficient.

FXXC

XC FX

B. Coordinated (f)

Coordinated group research programs of XC and FX, with both self-sufficient and overlap.

RESEARCH

Today & Future

C. Joint

Single research organization without overlap

D. Complementary

Separate organizations operating on exclusive projects.

RESEARCH

XC FX

XC FX

1970s

A. Independent

Each development and manufacturing (D&M) organization supplies its own marketing organization (MCO).

FXXC

XC

FX

B. Complementary without overlap

Assign development roles to each organization, with no overlap allowed in development projects.

DEVELOPMENT AND MANUFACTURING

XC D&M FX D&M

MCO MCO

XC FX

MCO MCO

1970s

C. Complimentary with overlap

Same as B, but with overlap in development projects

FXXC

XC

FX

B. Complementary without overlap

Single development and manufacturing organization with individual projects targeted to needs of separate marketing organizations.

DEVELOPMENT AND MANUFACTURING

MCO MCO

XC FX

MCO MCO

FUTURE

Alliances and dynamic :they evolve in response to changes in the capabilities and needs of the partners and in the external competitive environment.Often ,the very logic of collaboration will change ,and an alliance can grow to fulfill a function different its original mission .

As a result ,they need to be managed flexibility using a wide array of organizational structures and processes. Even if one aspect of a relationship remains unchanged (eg ownership structure) ,others aspects may be used to adjust the roles of the partners.

There is an inherent and often problematic tradeoff between alliance autonomy and integration into firms strategy. The optimal balance between the two depends on the role of the alliance in the parents strategies and on market and technologies conditions .