Xerox Corporation: The Customer Satisfaction Program
CASE: XEROX CORPORATION: THE CUSTOMER-SATISFACTION PROGRAM
THE PROBLEM
The problem for Xerox was to
u come out with a guarantee for its products that would be unique(P13,para7), which would lead to
u greater customer satisfaction and would also drive the organization to greater levels of performance(page13 para5) , so as to achieve
u the immediate objective of increasing sales by 5%-10% while applying the guarantee to all Xerox products for a period of three years and servicing them directly(page14,end Para).
ENVIRONMENT SCAN
O Mature and intensely competitive market; 23 companies battling for market share; slow growth rate of 2.9 CAGR
O Three categorized product markets:
?· Low-Volume: Product Capacity of $60,000/- ;Major competitors: Kodak, with presence of Canon,Konica,Lanier in lower end of High Volume
O Xerox had four Market Segments:
?§ Commercial Major Accounts(CMA):Customer size 5%,revenue generated 32%
?§ Named Accounts (NA): Customer size18%,revenue generated 28%
?§ General markets: Customer Size 62%, revenue generated 15%
?§ Government/Education: Customer size 15%,revenue generated 25%
O Competitive Advantage:
?§ Only full-line supplier with products ranging from the low-end of the low volume to high end of the high volume
?§ Market leader in higher priced Mid- and High- volume segments
?§ Dedicated National Service Organization- USMG , for installation and Maintenance of Xerox products
O Eroding market Share:
?§ Market share dropping from 100% in the 1960s to 40% in 1980
?§ IBM and Kodak
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