Xerox and Fuji Xerox Harvard Case Solution & Analysis

Xerox and Fuji Xerox Case Solution

Introduction:

 The case is about the strategic alliance between the two renowned companies of the world- Rank Xerox and Fuji Photo Film. Fuji Xerox was a 50/50 joint venture between Rank Xerox and Fuji and has been established in 1962 with the aim to be a marketing organization to sell xerographic products that were manufactured by Fuji Photo Film. However, this joint venture was considered as the most successful joint venture between an American and a Japanese company. Other than the technology licensing agreements with Rank Xerox, Fuji Xerox had acquired the manufacturing rights and also got the rights to sell the machines in Japan, Indonesia, South Korea, Taiwan, Thailand, Philippines, and Indochina.

Before, the joint venture, Xerox Corporation was intended to move internationally however due to lack of sufficient funds a 50/50 joint venture has been established between Xerox and Rank Organization. Rank was a lucrative motion picture business and was looking for the opportunities to diversify its business further. Thus, Rank Xerox begun to manufacture xerographic products and market them exclusively worldwide. Whereas, Fuji Photo Film was a manufacturer of Photographic film and were seeking to diversify its business away from silver-based photography and was sure that its technical expertise was well fitting to the requirements of xerography. Therefore, both the companies went into the Joint Venture to leverage each other’s interests.

Problem Statement:

The competition in industry become intense and Canon one of the major competitors had continuously involved in expanding its business and acquired the share in the low end market of copier industry. Canon was producing several different products including laser printer that was a great threat for Xerox to sustain the market. Further, the growth of Fuji Xerox also created a difficult situation for Xerox in order to stay in the competition. Furthermore, several other management issues such as difference in interest, and managing the low-end laser printing business by Xerox in America, were aroused between Fuji Xerox and Xerox that hindered the Xerox’s goals and objectives and made it difficult for Xerox to obtain benefits from this Strategic Alliance.

Analysis:

1.     How has Fuji-Xerox contributed to Xerox's competitive strategy over the past twenty years?

Fuji Photo Film helped Xerox for the production of Xerox Copiers and focused to sale the imported machines however due to import restrictions by Japanese government, Fuji Xerox were forced to carry the manufacturing facilities locally, thus, first Japanese- produced 914 was completed in 1963 in which 90% of its parts were came from local suppliers. Furthermore, Fuji Xerox has helped in passing the sales of Rank Xerox to French and German. Fuji Xerox had acquired a greater market share of the Japanese copier market.

Moreover, some of Xerox’s core patents were going to expired therefore, in order to cope up from this pressure, the management of Xerox transferred the manufacture copiers from Fuji Photo Film to Fuji Xerox and thus carried a combined manufacturing and marketing activities. Therefore, in 1971, Fuji Photo Film transferred its copier plant to Fuji Xerox and also completed its manufacturing and engineering facility. Moreover, due to the Fuji Photo Film agreement, Xerox Corporation was able to collect the information from Fuji Xerox. In addition, the technology agreement was also made between the two companies under which Xerox Corporation were allowed to use the technology that were acquired Fuji Xerox from outside sources.

Furthermore, the transfer of Fuji Xerox contributed in strengthens the Fuji Xerox technical capabilities which in turn helped Xerox to strengthen its expertise. Fuji Photo Film also helped in making the Xerox copier competent in Japanese local market by making certain modifications in its designs..................

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