Xerox Corporation: The Customer Satisfaction Program

5 Pages 1198 Words

CASE: XEROX CORPORATION: THE CUSTOMER-SATISFACTION PROGRAM

THE PROBLEM
The problem for Xerox was to
ü come out with a guarantee for its products that would be unique(P13,para7), which would lead to
ü greater customer satisfaction and would also drive the organization to greater levels of performance(page13 para5) , so as to achieve
ü 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
Ø Mature and intensely competitive market; 23 companies battling for market share; slow growth rate of 2.9 CAGR
Ø 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

Ø 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%

Ø 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

Ø Eroding market Share:
§ Market share dropping from 100% in the 1960s to 40% in 1980
§ IBM and Kodak gained market share in high-volume markets in1980s,and Japanese producers began competing in mid-volume market
§ Customer expectations higher than Xerox performance in equipment performance and service parameters


ALTERNATIVES AVAILABLE

1. Money-back Guarantee: Customer to be refunded if dissatisfied
2. Response-Time Guarantee: service within a specified timeframe
3. Performance Guara...