Xerox Analysis

Topics: Strategic management, Revenue, Generally Accepted Accounting Principles Pages: 4 (1032 words) Published: September 28, 2008
Xerox: Value Chain Analysis
Xerox Corporation (Xerox) values its research and development activity as one of its core competencies and primary profit engines. Xerox specifically states that it views its technology and the development thereof as being a key link in its value chain: “technology-a past, present and future strong suit for Xerox. We routinely invest 6 percent of our revenues in research, development and engineering”(“True” 5). This amount of financial investment in this core competency informs both analysts and stakeholders where the first link in Xerox’s value chain is. The value chain can be described as, “...the sequence of major business activities that add utility (usefulness) to the products or services provided by an organization to its customers” (Hwang 95). With that in mind Xerox can be subdivided into the components that add value to each process comprising the production and delivery of its products and services which are all technology related or dependent. The reasons for examining Xerox in this respect are many, but put succinctly, being aware of Xerox’s value chain and its components, “...will yield the greatest competitive advantage...”(Value par.2). Establishing competitive advantage in today’s marketplace has taken on proportions of mythic importance given that today’s competitors may arise from any region and in many forms. The Value Chain

Value chain analysis is to business management what Gestalt Theory is to psychology, and in this respect, by dissecting the interoperability of its departments in terms of value-added benefits Xerox can determine that some parts of the whole are not as useful or necessary as previously thought (“Value”). Xerox’s executive leadership has managed to steer the company from the precipice of financial ruin to astounding success by focusing the organization’s activities on its value chain: Inbound

(customer needs)>Operations
(R&D activities
To solve customer
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