Introduction
Xerox is one of the most creative and profitable firm. The company has been providing quality products to many customers within the past five decades. Xerox has become a fully-integrated company that embraces the best Research and Development (R&D) capabilities. This practice makes it easier for the firm to expand its product line. Xerox has also established itself as a successful sales and marketing company. Strategic management theory highlights useful strategies that can make many companies successful. Strategic management is a powerful practice whereby organizational leaders formulate and implement the best practices. This approach should consider different “aspects such as available resources, labor costs, competition, and future goals” (Chesbrough and Rosenbloom 531). At Xerox, strategic management has always “created the best positions in the minds of its customers” (Chaudoin 12). This essay describes how Xerox’s marketing strategies have evolved within the past five decades.
Evolution of Xerox’s Marketing Strategies
Xerox is a global player that markets its products to a wide range of consumers. The company “uses a powerful management strategy in order to develop, manufacture, service, and market its quality products” (Chaudoin 43). Xerox has identified new strategies in order to make its practices more effective. The company uses four management strategies in order to achieve its potentials. These “four strategies include execution of effective growth initiatives, optimization of infrastructure, adoption of modern technologies, and distribution expansion” (Hunt and Madhavaram 101).
Fuji Xerox’s initial marketing strategy focused on market growth for its 914 Copier. However, the machine was very expensive thus limiting the number of potential customers. The main customers included different Japanese companies. This situation forced Xerox to adapt a new system in order to market its copiers. The new rental system presented three benefits. The firm used the approach in order to make the copiers affordable and available. Many customers were “happy because such copiers would not become obsolete” (Chaudoin 14). The company also “established a new network of service people and direct sales” (Chaudoin 14). The Fuji Xerox joint venture focused on the best strategies in order to succeed. The first strategy focused on the best sales and marketing practices. Xerox’s past and current marketing strategies can be analyzed using several frameworks.
Ansoff Matrix
The Ansoff Matrix offers four growth alternatives for different products. The first strategy is market penetration. Xerox has been using this strategy in order to market its products. The company also used new strategies to expand its marketing strategies. The company also targeted new countries and geographies. The third alternative is known as Product Development (PD). Xerox has been improving its products using modern technologies. The firm’s rental system also supported its marketing strategy. The third approach is diversification (Hunt 38). Xerox has always been using the best ideas and strategies in order to diversify its products. This company has been using the best R&D strategies in order to achieve its potentials.
Product Life Cycle
One of the best theories of marketing is known as the Product Lifecycle Theory (PLC). According to this theory, every marketing strategy should focus on the needs of the targeted consumers. Companies should educate their potential customers after introducing new products in the market. Xerox has been developing its products depending on the existing market demands. The issue of competition forces the firm to identify new practices and strategies (Gibbs 64).
After several years, Xerox became a leading player in its industry. The growth phase calls for better strategies such as an effective supply chain. Appropriate distribution centers and channels are also critical whenever marketing a specific product. Xerox relied on the best approaches in order to create the best distribution channels. The issue of competition is also critical in every business practice (Gibbs 83). Xerox’s distribution channels have produced the best results. The concept of cooperative advertising can also work miracles. That being the case, managers and businesses should use different marketing theories in order to produce the best goals.
New Product Development
Xerox focuses on modern technologies in order to produce superior products. The concept of New Product Development (NPD) makes it easier for businesses to offer the best customer support (Hunt and Madhavaram 99). Fuji Xerox has also been using a powerful rental system. This system focused on the changing conditions of the targeted Japanese environment. The firm hired, trained, and retained competent salesmen. These individuals collected the best feedbacks from different customers. The firm responded to such needs by developing admirable products. These approaches made it easier for Fuji Xerox to develop better marketing processes and methods.
The firm established joint ventures with various firms in order to improve its manufacturing abilities. The strategy made it possible for Fuji Xerox to develop the best copiers. The company’s leaders (Nabuo Shono and Setsutaro Koboyashi) worked hard in order to produce the best technical skills. The firm continued to embrace advanced technologies from different corporations. This fact explains how the company continues to produce a wide range of superior products. Continuous improvement is a powerful process that is currently supporting the goals of this company (Hunt and Madhavaram 103). The firm has been expanding its products using various modern technologies. The company is presently producing powerful products such as color laser copiers and digital imaging devices.
Analysis of Xerox’s Marketing Strategies
The above discussion shows clearly that Xerox has been using adequate marketing strategies. Such strategies change depending on the targeted alliances and goals. It would be agreeable that the above marketing strategies have contributed a lot to the company’s success. That being the case, companies should focus on the power of Marketing Strategy Theory. This practice will make it easier for such companies to achieve the best outcomes. Companies should “use the most appropriate marketing strategies in order to solve the problems affecting their customers” (Hunt and Madhavaram 103). Different marketing theories identify the best strategies that can be used to attract different consumers. Marketing theory remains relevant to marketing practice. Marketers and businesspeople should “design the best strategies to appeal to the needs of the potential customers” (Gibbs 87). The strategy will also extend the profitability of the targeted products.
McKinsey & Company shows that different “strategic alliances usually fall short of their expectorations” (Gibbs 43). Sometimes “the alliance might end when one of the partners has acquired the skills or technologies” (Gibbs 46). Xerox should use powerful strategies in order to have a complete value chain in Japan. Some of these approaches include “planning the right entry into the market, investing in proper market research, responding carefully to the existing marketing changes, and integrating the skills gained from other partners” (Hunt 78).
The joint venture between Fuji Film and Xerox has created a unique marketing challenge. That being the case, Xerox “uses its low-end products in order to dominate the global market” (Chesbrough and Rosenbloom 536). Rank Xerox has also been unable to address its challenges. This gap has enabled Canon and other competitors to dominate the Asian market (Chaudoin 38).
However, the firm has purchased new marketing rights. This strategy will make it easier for the firm to market its products in New Zealand, Singapore, and Australia. The company has also distributed its products to new territories such as Europe and America. The company has hired local sales personnel in order to address the needs of its consumers (Chesbrough and Rosenbloom 518). It is therefore notable that Fuji Xerox uses its resources in order to provide quality services. This practice makes it easier for Xerox to satisfy its customers.
Conclusion
In conclusion, Xerox Group companies should identify new manufacturing methods in order to achieve their potentials. The firm should also embrace the power of integrated supply. The firm should consider the strengths of different marketing theories. Some approaches such as Ansoff Matrix, New Product Development, and Product Life Cycle offer appropriate ideas to Xerox’s managers. The constituent companies of Xerox should complement of one another. The firm should evaluate its expansion strategy in order to maintain its future goals. The company should check its goals in order to remain successful. The firm should also embrace the use of modern technologies. This approach will make it easier for the firm to expand its document technology.
Works Cited
Chaudoin, Michael. “The Evolution of Fuji Xerox.” Sloan School of Management 1.1 (1991): 1-80. Print.
Chesbrough, Henry and Richard Rosenbloom. “The Role of the Business Model in Capturing Value from Innovation: Evidence from Xerox Corporation’s Technology Spin-off Companies.” Industrial and Corporate Change 11.3 (2002): 529-555. Print.
Gibbs, Richard. Strategic Alliances and Marketing Partnerships. London: Kogan Page, 2013. Print.
Hunt, Shelby. Marketing Theory: Foundations, Controversy, Strategy, and Resource-Advantage Theory. New York: M.E Sharpe, 2013. Print.
Hunt, Shelby and Sreedhar Madhavaram. “Teaching Marketing Strategy: Using Resource-Advantage Theory as an Integrative Theoretical Foundation.” Journal of Marketing Education 28:2 (2006): 93-105. Print.