Micro Environmental Factors Essay
Micro Environmental Factors
What micro environmental factors have affected Xerox’s performance since the late 1990s? Xerox has dominated the industry by inventing photocopying, but changes in the internal environment shook its fortune and market value. At the beginning of technological change, Xerox lacked a solid management level. Poor leadership makes poor marketing decisions. Restricted product options limited necessary opportunities for growth and staying atop competition. They were stuck on the copying and printing technology at the time when the customer market moved on to sharing documents and information digitally. The inability to meet customers’ demands drove down the stock price and cost the company profits. To stay in business, Xerox had to make changes in marketing channel firms, namely the revision of suppliers, by outsourcing to China.
It improved product cost, while preserving quality and creating better customer value. Vast management modifications, in form of attaining good leadership, cutting down on workforce, and changing focus from selling product to fitting customer needs, saved company’s economics from declining. It is until the recession of 2001 that negatively marked all economic activities; to recover, Xerox made a major decision to acquire ACS, an IT company. Incorporation has equipped the company with new expertise, capabilities, and business channels to proceed with a new business plan. Importantly, innovations allowed improving document management process, Xerox’s new production and marketing focus, dropping the number of technological errors and lowering labor to complete tasks.
As the company expanded offering a broad portfolio of document management technology and services products, it redefined its name and altered Xerox’s competitors from copy machine producers to IT companies like HP and IBM. A new strong competition usually inspires more effort to serve customers better. These changes in the Xerox’s micro environmental factors have positively affected the company’s ability to serve its customers. Being in business for more than 50 years brings the company advantages in the form of branding and strong reputation with consumers and other customers.