Fuji Xerox’s activities were growing while Xerox was losing a lots of market shares. Fuji Xerox was in a strategic position to obtain more independencyand autonomy. That’s why royalties on FX’s sales decreased between 1983 and 1993. Thereafter, FX started to receive a manufacturing license fee.
In the late 70’s, Xeroxplaned a new strategy to face the reality of the market and started to diversify into financial services. It failed. Therefore, it became clear for Xerox that FX’s partnershipshould be revised. It became the first step, for FX to import its own copiers into Xerox’s market. They also begun in sharing FX’s benchmarking, TQC and managers.
The effortappears to have paid off. It resulted as a win back of Xerox’s share market, 15% in two years.
This experience of sharing knowledge in an international partnership ledXerox to revise the whole business model it used for decades by five axis, constantly allow resources on R&D, have a global and international strategy and cross culturalmanagement, reduce costs and more precisely structure costs, insist on quality and customer services and employees involvement.
Since Xerox had lost its patents, it became clearthat there was a high risk of new entry by potential competitors such as Canon. Canon had a successful development in the 80’s when so much society faded away. Canon remainedhas the most threatening opponent for Xerox in low-end copiers because of its ability to increase revenue and market shares and to spend more and more in R&D.
Xerox neversurrendered its standing as a major manufacturer of high end and middle end copying machines and the cooperation of FX allowed the company to compete alongside with Canon.