What macroeconomic factors have affected Xerox's performance since the late 1990s?
Xerox’s performance was affected by its failure to adapt to the rapidly changing marketing environment. Xerox was the most competitive company in the copier industry until the marketing environment changed. The company was unable to change with the changing customer needs because most customers had moved into the digital environment and were looking for a company that used digital technologies. Additionally, Xerox failed to meet customer demands because the management focused more on perfecting copying machines while customers looked for more advanced document management solutions. Secondly, the poor management of the company affected its performance. Xerox leaders were reluctant to changes and were not aware of the changing marketing environment.
What macroeconomic factors have affected Xerox’s performance during that period?
The poor performance of Xerox was caused by the loss in the market value of the company. Xerox failed to change with the new marketing environment making customers shift to other technologically advanced companies leaving it at the edge of financial disaster. Most customers had shifted to companies offering digital printing and copying services leaving Xerox with limited number of customers. The company experienced tremendous decrease in performance until the late 1990s.
In the present digital world, organizations that adopt strategies related to modern technologies make the best decision. Digital organization always seek for need sources to promote growth and achieve better results using technology that results in high performances. The printing business industry has changed into the digital era and organizations must focus more on what the customer needs. Xerox developed the document managed technology and service enterprise to win back its market value. The strategy is highly recommended because it helped create new customers and new competitors in the industry.
What alternative strategy might Xerox have followed in responding to the first signs of declining revenues and profits?
Every organization aims at improving its revenues and increasing the profit margin. Xerox experienced a drastic fall in both values and needed to come up with an effective strategy. Xerox could merge with companies with a higher market share within the industry to help it regain its market share. The company stands a better chance of achieving higher returns during the merge when it has the largest share in the merge.
Given Xerox current situation, what recommendations would you make to Burns for future Xerox?
Burns should focus on implementing changes in the company to incorporate good customer services and more technologies by adopting the perfect quality technique to develop new fundamentals of the business including changes in manufacturing, product development, and customer services. On the other hand, Burns should focus on reorganizing the company's architecture by introducing new features and leadership responsibilities that align with the prevailing business environment.
