ox were always a corporation who relied on producing innovative products, but this diversification was often to no effect. In 1969 Xerox diversified after acquiring the Scientific Data Systems Company, which manufactured mainframe computers. This particular venture backfired as the minicomputer was introduced and the requirement for the larger mainframe computers lessened. A newly formed office products divisions introduced a word processor and a workstation, each of which failed to take off for different reasons. In the interim Japanese competitors established a solid position within the low-volume markets and turned its attention to the more profitable medium & high volume markets. By the start of the ‘80’s Xerox was losing significant market share to its Japanese competitors. Not only were the Japanese products excellent, they were sold cheaper than Xerox could manufacture them. Xerox market share dropped from nearly 100% in the ‘60s to below 50% in 1980. It was this threat that changed the way Xerox was to focus in the future. For a long time Western Companies rationalised Japans success to low labour costs, the Japanese work ethic, lifetime employment and other factors. Such rationalisations simply clouded the real issue. Japan had simply developed vastly superior products, practices and processes. Xerox had to look outside its particular functions to identify the best competitors and how they did certain things, be it cost, quality or product reliability. The work for the 1980’s for Xerox was to rise to the challenges of the 70’s, to meet increase competition, sustain growth and profitability, control costs and improves quality.To quote Kanter’s definition of innovation –“ the process of bringing any new problem-solving idea to use. Ideas for reorganising, cutting costs, putting in new budgeting systems, improving communication or assembling products are also innovations. Innovation ...
