netrashetty
Netra Shetty
Xerox Corporation (NYSE: XRX; pronounced /ˈzɪərɒks/) is a Fortune 500 global document management company (founded in 1906) that manufactures and sells a range of color and black-and-white printers, multifunction systems, photo copiers, digital production printing presses, and related consulting services and supplies. Xerox is headquartered in Norwalk, Connecticut (moved from Stamford, Connecticut in October 2007[1]), though its largest population of employees is based in and around Rochester, New York, the area in which the company was founded. On September 28, 2009, Xerox announced the intended acquisition of Affiliated Computer Services for $6.4 billion. The deal closed on February 8th, 2010.[2] Xerox holds a Royal Warrant from HM Queen Elizabeth II and the Prince of Wales.
Xerox (NYSE: XRX) provides document systems and services for businesses. The company makes printers, multi-function devices production publishing systems, managed print services, and related software. Xerox also provides support and supplies such as toner, paper, and ink. The company is the industry leader in managed print services. The company is best known for its copy machines, which in turn has lead the business world to use company's name as a verb (meaning to copy). In order to keep the positive branding it has obtained since its founding in 1906, the company has made efforts to keep up with technological advances by restructuring itself into more of a serviced based company. The company even changed its logo in the late 2000s as an indicator of the re-branding. The company earned $15 billion in revenue and $485 million in net income in 2009.[1]
Company Overview
As the document industry has changed over the past few years, Xerox has focused more on the sale and maintenance of high-end color image and managing systems. Xerox continually tries to make new technological advances to maintain their equipment sales. Simultaneously, Xerox has taken a larger role as a service-based company. This transition will allow the company to reduce risk and maintain a consistent revenue stream as clients sign long-term agreements with the company.
Business Segments[2]
Contents
1 Company Overview
1.1 Business Segments[2]
1.2 Acquisitions[3]
2 Business Growth
2.1 FY 2009 (ended December 31, 2009)[1]
3 Key Trends and Forces
4 Competition
5 References
Office - Xerox develops and manufactures a range of color and black-and-white multifunction, printer, copier fax products and document related software solutions. The company's Office segment serves global, national and small to mid-size commercial customers, as well as government, education and other public sector customers. Office systems and services, which include monochrome devices at speeds up to 95 ppm and color devices up to 85 ppm, include our family of ColorQube, WorkCentre® multifunction printers (“MFP’s”) and Phaser® desktop printers and MFP’s.
Production - the segment provides high-end digital monochrome and color systems designed for customers in the graphic communications industry and for large enterprises. The company offers a complete family of cut-sheet monochrome production systems from 65 to 288 ppm, color production systems from 40 to 110 ppm and a complete line of continuous feed printers from 250 to 1,300 ppm.
Other - The Other segment primarily includes revenue from paper sales, value-added services, wide-format systems and GIS network integration solutions and electronic presentation systems.
Acquisitions[3]
In February 2010, the company acquired Affiliated Computer Services, Inc. ACS is a premier provider of diversified business process outsourcing and information technology services and solutions to commercial and government clients worldwide in areas that include finance and accounting services, communications, transportation, human resources, healthcare, transaction processing, and customer care.
Business Growth
FY 2009 (ended December 31, 2009)[1]
Net revenue fell 14% to $15 billion. The company attributes the decline to lower sales volume due to the sluggish economy.
Net income more than doubled to $485 million.
Key Trends and Forces
Digitization of information: Computers and the internet have become indispensable parts of business operations. As emails and digital documents replace traditional means of sending and storing information, Xerox and other document industry firms will face the challenge of decreased demand for paper-related systems and products. The company has begun to offer services such as the Office Document Assessment that allow the company to analyze client’s workflow and document needs, and then identify the most effective mix of office equipment and software for that business. Xerox works to reduce their customer’s document-related costs while increasing their own profits as they offer these and similar high-margin services. Despite the transition to digital systems, paper-related products will remain a vital element of Xerox's business so the company is still vulnerable to fluctuations in Timber Prices.
Transition to Color: A transformation continues to take place in the document industry, as the demand for monochrome systems diminishes and more customers want color products. Xerox and its competitors are continuously developing advances in color printing and copying and the firm that is able to take advantage of this new market will see significant growth in profits. Since color products require more supplies, they also have profit margins five times as great as monochrome printers.[4]
Competition
Below are the five largest companies in the office equipment industry (excluding computers):
Xerox (XRX)
Ricoh
Pitney Bowes
IKON Office Solutions (IKN)
Diebold
Xerox (NYSE: XRX) provides document systems and services for businesses. The company makes printers, multi-function devices production publishing systems, managed print services, and related software. Xerox also provides support and supplies such as toner, paper, and ink. The company is the industry leader in managed print services. The company is best known for its copy machines, which in turn has lead the business world to use company's name as a verb (meaning to copy). In order to keep the positive branding it has obtained since its founding in 1906, the company has made efforts to keep up with technological advances by restructuring itself into more of a serviced based company. The company even changed its logo in the late 2000s as an indicator of the re-branding. The company earned $15 billion in revenue and $485 million in net income in 2009.[1]
Company Overview
As the document industry has changed over the past few years, Xerox has focused more on the sale and maintenance of high-end color image and managing systems. Xerox continually tries to make new technological advances to maintain their equipment sales. Simultaneously, Xerox has taken a larger role as a service-based company. This transition will allow the company to reduce risk and maintain a consistent revenue stream as clients sign long-term agreements with the company.
Business Segments[2]
Contents
1 Company Overview
1.1 Business Segments[2]
1.2 Acquisitions[3]
2 Business Growth
2.1 FY 2009 (ended December 31, 2009)[1]
3 Key Trends and Forces
4 Competition
5 References
Office - Xerox develops and manufactures a range of color and black-and-white multifunction, printer, copier fax products and document related software solutions. The company's Office segment serves global, national and small to mid-size commercial customers, as well as government, education and other public sector customers. Office systems and services, which include monochrome devices at speeds up to 95 ppm and color devices up to 85 ppm, include our family of ColorQube, WorkCentre® multifunction printers (“MFP’s”) and Phaser® desktop printers and MFP’s.
Production - the segment provides high-end digital monochrome and color systems designed for customers in the graphic communications industry and for large enterprises. The company offers a complete family of cut-sheet monochrome production systems from 65 to 288 ppm, color production systems from 40 to 110 ppm and a complete line of continuous feed printers from 250 to 1,300 ppm.
Other - The Other segment primarily includes revenue from paper sales, value-added services, wide-format systems and GIS network integration solutions and electronic presentation systems.
Acquisitions[3]
In February 2010, the company acquired Affiliated Computer Services, Inc. ACS is a premier provider of diversified business process outsourcing and information technology services and solutions to commercial and government clients worldwide in areas that include finance and accounting services, communications, transportation, human resources, healthcare, transaction processing, and customer care.
Business Growth
FY 2009 (ended December 31, 2009)[1]
Net revenue fell 14% to $15 billion. The company attributes the decline to lower sales volume due to the sluggish economy.
Net income more than doubled to $485 million.
Key Trends and Forces
Digitization of information: Computers and the internet have become indispensable parts of business operations. As emails and digital documents replace traditional means of sending and storing information, Xerox and other document industry firms will face the challenge of decreased demand for paper-related systems and products. The company has begun to offer services such as the Office Document Assessment that allow the company to analyze client’s workflow and document needs, and then identify the most effective mix of office equipment and software for that business. Xerox works to reduce their customer’s document-related costs while increasing their own profits as they offer these and similar high-margin services. Despite the transition to digital systems, paper-related products will remain a vital element of Xerox's business so the company is still vulnerable to fluctuations in Timber Prices.
Transition to Color: A transformation continues to take place in the document industry, as the demand for monochrome systems diminishes and more customers want color products. Xerox and its competitors are continuously developing advances in color printing and copying and the firm that is able to take advantage of this new market will see significant growth in profits. Since color products require more supplies, they also have profit margins five times as great as monochrome printers.[4]
Competition
Below are the five largest companies in the office equipment industry (excluding computers):
Xerox (XRX)
Ricoh
Pitney Bowes
IKON Office Solutions (IKN)
Diebold