Marketing 508 - 08/04/05
Xerox Case Study Analysis
Xerox's "Book In Time" is a revolutionary product, presenting some new opportunities for the company. It is simply a matter of costs. The Book-in-Time equipment allows for a publishing company to produce a 300-page book for $6.90, something which could have been previously reached only for lots larger than 1,000 copies. A significant decrease in publishing costs, given the fact that these cover up to 20 % (including the paper and binding the book), would create the possibility of an increased profit margin.
Book-In-Time solution provided by Xerox is one of the most efficient solutions for publishing companies running on demand for short-run books. The advantage …show more content…
Based on analysis and providing due considerations towards possible impact on customers as part of channel implications, the best action plan for Xerox at the given time is two pronged approach, a combined version of two options it has in hand. On one hand it can sell the equipment to the interested buyers from the value chain which they are good at. On the other hand find the entrance into publishing market. This involves dealing with channel implications for some customers by revising support costs and encouraging the competition by being fair (At least by not taking advantage of owning the technology). This option break evens at 3 machines ( See Appendix II)
With the given approach, Xerox should consider a joint venture forward integrating into or acquisition of a publishing company. This way, it will be able to create positive synergy by bringing together company's equipment and solutions and the know-how and experience of human resources for the publishing company and people that will smooth the entrance in the new market. As far as four P's concerned, the Book-In-Time product should take advantage of it's differentiation related to short run printing costs and product placement within