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Word Count: 867
In 1960 the Xerox Corporation was in a position where it could corner the copy machine industry for the next 15 years Xerox had practically invented the copy machine and had secured its dominate stake in the copy machine industry with patents However this security backfired on Xerox because it didnt allow them to focus on new product development During this period their research and development goals diminished and the quality of their products remained the same if not worsened The strategy Xerox had remained stagnant Xerox found itself in the mid 1970s with a loss in profit market share and competitive stance By effective supply chain management Xerox would be able to revamp its structure In order to confront new competitors such as Ricoh and Canon Xerox was going to have to make major changes within its organization First Xerox management sought to simplify the purchasing process By consolidating its supply base it was able to reduce overhead pass lower costs onto customers improve quality of its products and work better with suppliers Next the commodity teams were designated to reduce defect parts per million through a five step program it developed Thirdly internal restructuring brought about the circle groups which resulted in a new system of competitive benchmarking and customized products Finally with a new research and development approach Xerox was able to delve into new product development bringing them brand recognition And with a new central logistics and asset management program the company was able to reduce excessive inventory and related costs Objectives of the Case The purpose of the case is to Determine how Xeroxs strategies transformed from the late 1970s to the 1980s Determine how the change in strategies and organization allowed Xerox to be competitive Identify the source of guidance it received for its restructuring and what this revealed about the advantages of a multinational firm Determine how taking
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