Xerox's Book in Time: Market Strategy

Xerox's "Book In Time" is a revolutionary product, presenting some new opportunities for the company. The Book-in-Time equipment allows for a publishing company to produce a 300-page book for $6.90, something that 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 gained by larger publishing and printing companies that may have achieved economies of scale with large print runs would be evenly compensated with the significant cost saving short run Book-In-Time technology.

Break Even = Fixed Cost / (Selling Price âˆ' Variable Cost)
Xerox Book-In-Time Break Even Analysis)
Component Costs/Fixed costs $895000
Variable cost $.95
Selling price $6.90
Break even 150420

Xerox has two clear distinct options. First option is to stick with what is best at printing, copying and delivering exclusively the Book-In-Time technology. Meaning, selling Book-In-Time equipment to all those elements of the value chain that may be interested. This includes publishers and printers. Major advantage with this option is the fact that Xerox operates in the market it fully knows, dominates and controls. As a market leader, having gained clear edge over main competitor IBM, Xerox can consolidate its position with the introduction of innovative new product "Book-In-Time solution" that could significantly reduce the publishing costs. On more advantage with this option is that, as SteenBurg laid down the facts, this option provides a real synergy for the company, integrating several pieces into a significant system and allowing the company to gain more rather than operating them separately. Importantly, unlike