ASSIGNMENT 3 To Sub
AnaMaria Meshkurti Master in Marketing and Communications Assignment 3 – Rome Business School 14.04.2015
Assignment 3
Study module 3
Read the case study at the end of chapter 3 of your textbook and answer the questions.
1. What microenvironmental factors have affected Xerox’s performance since the late
1990s?
Companies operate in two different environments, called micro and macro environment. The microenvironment is also known as the environment on which a company has influence, or can impact for change. Mainly actors that are close to the company and shape the way it interacts with its customers in creating value, create the microenvironment. Elements of the microenvironment are: the company, suppliers, marketing intermediaries, customer markets, competitors, and publics.1
As the case study shows, Xerox’s performance is affected negatively since the late 1990s, due to the accumulation of different micro and macro environmental factors. Looking at the microenvironmental factors, we can point out the below four main actors that lead to Xerox’s poor performance and results:2
The company: According to the case study Xerox’s had dominated the photocopying industry. It could be implied that the company had a very big market share in this industry and therefore little marketing or customer attention was needed to sell its products. Therefore the company was not being lead from a marketing point of view but from a sales point of view. Top management in the company suffered from product myopia and focused their attention on perfecting a best selling product that they already had, while the world around them was moving.
Xerox had made investments in R&D, but as the company`s top management was not focused on creating the next big thing, but rather on perfecting what was already proving successful, the company was stuck in time. Unfortunately, a mission statement of the company has not been provided, but I believe that the
Assignment 3
Study module 3
Read the case study at the end of chapter 3 of your textbook and answer the questions.
1. What microenvironmental factors have affected Xerox’s performance since the late
1990s?
Companies operate in two different environments, called micro and macro environment. The microenvironment is also known as the environment on which a company has influence, or can impact for change. Mainly actors that are close to the company and shape the way it interacts with its customers in creating value, create the microenvironment. Elements of the microenvironment are: the company, suppliers, marketing intermediaries, customer markets, competitors, and publics.1
As the case study shows, Xerox’s performance is affected negatively since the late 1990s, due to the accumulation of different micro and macro environmental factors. Looking at the microenvironmental factors, we can point out the below four main actors that lead to Xerox’s poor performance and results:2
The company: According to the case study Xerox’s had dominated the photocopying industry. It could be implied that the company had a very big market share in this industry and therefore little marketing or customer attention was needed to sell its products. Therefore the company was not being lead from a marketing point of view but from a sales point of view. Top management in the company suffered from product myopia and focused their attention on perfecting a best selling product that they already had, while the world around them was moving.
Xerox had made investments in R&D, but as the company`s top management was not focused on creating the next big thing, but rather on perfecting what was already proving successful, the company was stuck in time. Unfortunately, a mission statement of the company has not been provided, but I believe that the