Xerox Competitive advantages

Xerox is an American company that specializes in providing photocopying and digital document services. Founded in 1906, the company had begun initially to provide supplies of photographic paper and other equipment. Over the past century, Xerox has taken massive strides in its area of business to establish itself as the world leader in its field. Xerox took a considerable hit amidst the ongoing pandemic due to the reduced demands, with the annual revenue in FY 20-21 standing somewhere around $7 billion, down from its projected value. Xerox is a global leader in the photocopying and printing equipment business. The company has a number of advantages over its competitors in the form of brand value, profitability, technology, and a large user base. In this article, we are going to take a look at the competitive advantages of Xerox. Let’s dive into the topic.

xerox Competitive advantages

Brand Value

This is undoubtedly the biggest plus for Xerox. The company is well-known worldwide for providing top-quality products at an affordable price range, with Xerox hardly ever disappointing customers in its 100-year-old history. As such, people trust the brand and enjoy a certain assurance while buying Xerox products regarding quality.

Fun fact: The popularity of Xerox is so much that at some places around the world, people hardly know the term “photocopy”. When they need to get a photocopy done, they walk into a store and simply say, “Xerox it!”

Large User Base

This is an extension of the previous point. Brands with such value and strength usually have the largest of consumers and it is no exception for Xerox too. Xerox carries out its operations in as many as 160 countries and more than 2 billion people are estimated to use Xerox’s services directly/indirectly. 

This makes it much easier for the brand to market and distribute new products. Also, the company can get valuable customer reviews and work on its products. 

Profitability and Free Cash Flow

Xerox carries out its operations at gross margin rates of nearly 40%. For a company this big in its scale of operations, 40% is a handsome amount. This ensures that there is a steady cash flow in the company, allowing Xerox to invest in upcoming technology and innovation, as well as spending smart amounts in advertising and expansion. 

Xerox has also made some strategic acquisitions in the past, which have had a significant impact on the company’s business. 

  1. First Mover Advantage: This is another important advantage that Xerox enjoys over its competitors. Founded way back in the year 1906, the company has existed for more than 115 years now.

A look at Xerox’s competitors shows that none of the companies had come into existence before the Second World War at least. Thus, a head start of more than 40 years helped Xerox to establish a strong distribution network and brand value within that period.

  1. Technological Advantage: 

Xerox boasts of using the best technologies in its business operations. Xerox has state-of-art laboratories and infrastructure, and the company also hires only the best of people. It is no surprise therefore that the best people in the business combined with the best technology available makes Xerox’s products truly remarkable. Xerox is considered to be one of the most energy-efficient companies in the world.

Aggressive marketing strategies and efficient management

Xerox is known for coming out with innovative advertisements for its products. These advertisements tend to strike the right chord with the target audience and make sure they have the desired impact upon them. Xerox is also led by a very efficient group of people whose acute decision-making and company management have yielded considerable success to the company’s cause.

Xerox’s acquisition of Altodigital, ITEC connect, etc. have also played a major part in helping the company expand its business and market hold over new territories. 

Conclusion on Xerox Competitive advantages

We have seen in this article all about the competitive advantages of Xerox. Xerox has cemented itself as the number 1 company in the digital print business, and the smart management of the company has had a significant contribution in helping the company achieve so. However, the company needs to keep up its good work and continue to provide smart solutions to maintain its global stronghold. 

Frequently Asked Questions:

Question. What is the list of services provided by Xerox?

Xerox provides a wide array of services including manufacture and sale of printing devices, providing solutions to digital photography and photocopying, and office printing solutions. The company also has research ongoing in the Image Processing business.

Question. List down the main competitors of Xerox.

Xerox faces competition from several other companies including Canon, HP, Nikon, IBM, Toshiba, etc. It must be noted that this list is not exhaustive. There might be other companies that operate in the same domain as Xerox does.

Xerox Competitive advantages

Leave a Reply

Your email address will not be published. Required fields are marked *

Scroll to top