usinesses, offices, schools are everywhere in the world, which gives them a variety of, markets to target. Furthermore, since Xerox had the idea of renting the machines to people, it not only allowed for service contracts; but it also help ensure repeat customers. Xerox felt confident about the Japanese market, so they formed a joint venture with Fuji Photo Film. This new alliance created Fuji Xerox (FX). FX was only allowed to sell and market in specific area that it had license to sell, FPF was the one that would manufacture the copiers. With the threat of losing their patents, Xerox felt that it was time to have FX manufacture the copiers. With fresh ideas, FX began to develop new ideas for the copier. After developing a new model which had almost half the cost of the Xerox model and impressing the Xerox people; FX received the nod to have additional funding for R&D. This was important because not only was the Japanese market slightly different, for example they used smaller paper, but competition was strongly catching on to the business. This decision would eventually save Xerox from shutting down. Companies like Canon were challenging Xerox in the States, and Xerox had no defense. Xerox could not compete with the lower cost models. To the rescue, FX was able to develop new products with more efficient manufacturing. They were able to teach Xerox improved ways of manufacturing and offer improved products for the business. The tables had turned on the relationship once FX began supplying Xerox and RX with their own products they had developed. Not surprisingly the Xerox people started to grow a little weary of FX. However, management was able to look beyond the threat and create a relationship that complemented one another. They began working together on reorganizing their businesses to further cooperate with one another and discuss issues that both companies had with the market or with one another. This case will t...