Xerox Fuji Xerox
The case is about Xerox developing into a solid company and then entering Japan. It discussed how they strategize, or lack thereof, their position in the copier industry as they grew and then began to lose control of the market. The company faced political requirements when entering Japan that were somewhat easily satisfied, yet competition and technological advances caused for the stagnation of Xerox to the point that it was not sure if it were going to survive. Legal issues were also thrown into the mix which affected the company. Realizing the benefits it can gain from working with their subsidiary FX, Xerox began to cooperate and respect the work their Japanese friends were doing. Eventually, the relationship changed into something that Xerox never would have guessed might happen. Fortunately, Xerox was able to benefit from these changes and get back on their feet. The case ends with the start up of a task force with the intentions of further developing and expanding on the relationship between the two companies. Xerographic technology was first developed in 1938
While their sales maybe great, their costs may not be in check. Soon, Xerox began exploring and entering the international markets. If sales show to be better than your benchmarked numbers than it can be an indicator of success. This way cost can be minimized by eliminating your need to start up a new distribution system. By having an alliance, they can give insider tips on these types of things. So much in fact that after competition became more aggressive, especially in the States, FX began to sell their products to Rank Xerox and Xerox. What are the advantages and disadvantages of alliances in the global strategy?When forming an alliance in a global strategy many advantages and disadvantages can be realized. Regardless of what you use, it is important to remember to have some sort of basis or benchmark to go off of. Too many times the companies get caught up on the equity issues and lose focus. This way, entering the market will be easier and cause your company to be up and running faster. Later on, the manufacturing was transferred to FX leaving FPF in the rear view mirror. The partner you seek can have great financial backing by investors, or a great credit rating which could open up opportunities for you. They were able to teach Xerox improved ways of manufacturing and offer improved products for the business. As an alternative, they could have not entered Japan at all, but I think the cost of not having Japan as a market would be worse. Not only sharing profit can be a problem.
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