Professional Documents
Culture Documents
Presented by:
Xerox Corporation
HEC Montreal
Quebec
By Sema Barlas
Joe Wilson – founder of Xerox Corporation said “change is a way of life here at Xerox.” Did Xerox
change too fast for its identity to catch up? It seems now that no one knows photocopying, meaning
document management solutions, better than Xerox.
Xerox Corporation is a $17.6 billion technology and services enterprise engaged in developing,
and services. The company's operations are guided by customer-focused and employee-centered
core values -- such as social responsibility, diversity, and quality -- augmented by a passion for
innovation, speed, and adaptability. The company’s brand is a valuable resource and it continues
to be recognized in the top 10% of all US brands. Xerox figured in the 56 th place in the
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BusinessWeek-Interbrand’s Top 100 Global Brands list in 2007. Its brand was valued at $6,050
Xerox has enjoyed a strong brand image of a leading company with innovative technologies,
products, and solutions that customers can depend upon to improve business results. However,
the Brand Division of Xerox led by Richard Wergan has been concerned for more than a decade
now that Xerox name has also become synonymous with photocopying. Strong brand image tied
to the photocopying is becoming a disadvantage for the company since the copier market is now
being perceived as old fashioned industry with stagnant or even declining profit potential. Also,
the brand image tied to photocopying undermines the current portfolio of company’s innovative
and high-tech offerings. In sharp contrast to its brand image of manufacturer of photocopying
machines, Xerox has evolved today into a service-led technology company with strong customer
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focus. Given the importance of trust and dependability instilled by a brand in service-led
order to align the brand image and current portfolio. Ideally, Xerox brand should be repositioned
that provides solutions to manage massive flow of information and communication in businesses
today, a company that helps its clients to make the most of their IT infrastructure, and a company
Your mandate is to analyze the Xerox brand to recommend a rebranding strategy. This may
program, change in brand’s logo, or both. Alternatively, the change may be so radical in the form
of a new brand name or even the division of the company. The important issue to consider is that
the changes should be radical enough to reposition the brand/company as an innovative high-tech
firm offering document management solutions by distancing it from negative connotations of the
existing image; however, changes should target carefully selected specific areas so that company
continues to enjoy the benefits of $6,050 worth of equity in the existing brand image.
Xerox Corporation
Xerox was established in 1906 as The Haloid Company to manufacture and sell photographic
paper. The company made its first xerographic copier in 1949. The Haloid Company changed its
name to Haloid Xerox in 1958. Haloid Xerox became Xerox Corporation in 1961. Xerox
diversified into computers and founded the Palo Alto Research Center (PARC) in 1970. It
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discontinued the manufacture and sale of mainframe computers in 1975 and exited the data
processing as well as PC market in early 1990. The company operates in over 160 countries
worldwide with concentration on mature markets, and distributes its products through wholly
owned subsidiaries and third-party distributors. Headquartered in Norwalk, Conn., Xerox ranked
142 among the Fortune 500 companies in 2007 and has 57,100 employees worldwide. Xerox has
a strong heritage of innovation. For instance, PARC has been responsible for such well known
and important developments as laser printing, the Ethernet, the modern personal computer,
many more. However, it is often said that the company could not leverage fully the historic
innovations of PARC in creating a congruent image for the Xerox brand. Nevertheless, a strong
R&D heritage enables Xerox to stay ahead of the market today by introducing new technologies
and products on a consistent basis. Xerox received 558 US utility patents and launched 14
products in 2006 that together earned 208 industry awards . Indeed, two thirds of companies
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revenues comes from newly introduced products and the company introduces a new product on
According to Richard Wergan, client companies in B2B technology marketing are seeking for
strong brands that offer complete solutions, consisting of equipment sale, service, and supplies.
department, and fax machines by office managers. That results in multiple service contracts and
a wide variety of brands and supplies -- especially ink and toner cartridges, which are usually the
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biggest expense. Having one-provider reduces the number of equipments (e.g., by installing
multifunction machines) and the number of pages printed, resulting in considerable cost savings
while increasing efficiency. The exclusive contracts are also beneficial for provider companies
like Xerox, allowing them to replace machines made by rivals and thus to provide all printing
equipment, supplies, and services, and in turn, to increase customer wallet share. Also, services
and non-equipment solutions are becoming a vehicle for converting prospects into customers; not
surprisingly, these non-equipment customers are more likely to upgrade their system with Xerox
equipment than other prospects. As a result, a single supplier managing client’s whole document
related system for a monthly fee is becoming an industry standard. Furthermore, reducing the
number of equipments and pages printed enables the companies to building an image of and act
solutions, Xerox has thus become a one-stop document solutions company by providing the
Office Products Division serves global, national, and small to mid-size commercial firms as
well as government, education and other public sector customers. It offers laser and solid ink
printers, copiers, fax machines, multifunction systems (copy, print, scan, and fax), and software
solutions. Office division generated 55% of the total revenues during 2007.
communications industry and to large enterprises. These high-end devices include colour and
black-and-white printing and publishing systems, digital presses and "book factories," wide-
Spaeth, T. (2009). Brand evolution: Signaling dramatic change or keeping change under wraps. Conference Board
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format printing, business development solutions (e.g., teaching client companies how to T
effectively build, market, and sell digital printing) , work flow solutions (e.g., enabling
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companies to analyze, streamline, automate, secure, and track their digital workflows), and
application solutions (e.g., providing web-based processes for personalizing direct mail). Xerox
also offers associated software, support, and supplies such as toner, paper and ink. Production
Document Outsourcing Division helps its clients to improve and manage their document
training, or records management. For instance, Xerox Global Services helped Bouygues Telecom
now receives, opens, sorts, and scans all letters posted or faxed to Bouygues Telecom from all
over France. The scans are loaded into Bouygues Telecom’s customer relationship management
system, where Bouygues Telecom’s customer-service agents can use them like any other piece of
customer information. As a result, customer correspondence handling times reduced from two
weeks to one day at Bouygues. Outsourcing division generated 14.2% of the total revenues
during 2007 and managing client company’s document flow is a fast-growing part of the Xerox’s
product mix.
Xerox recorded revenues of $17,228 million during the financial year ended December
2007, an increase of 8.4% over 2006. Some of the reasons for the growth were 9% increase in
post sale, financing and other revenue, 8% increase in service, outsourcing, and rentals revenue,
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and 7% increase in equipment sales revenue. There was a rise in color revenues as well. The
operating profit of the company was $1,685 million, an increase of 13.2% over 2006. The net
Competition
Because of its diverse portfolio, Xerox faces intense competition on the basis of technology,
performance, price, quality, reliability, brand, distribution, and customer service and support
across different industries (e.g., electronic office equipment, IT services, IT hardware, and
Software). The company’s key competitors include Canon, Ricoh, IKON, Hewlett-Packard, and
in certain areas of the business, Pitney Bowes, Kodak, Oce, Konica-Minolta, and Lexmark (See
Table 1). Some of the companies like Canon and Hewlett Packard Company have larger scale
operations and have generated higher revenues than Xerox. In the office market, Japanese
companies such as Canon and Ricoh are offering competitive products at lower prices. This has
been a big threat since customers in the low-end market are more price-sensitive. In the market
other companies such as Canon and Ricoh have also developed competitive products, with high
quality and performance. In the US multifunction peripherals market Canon has the leading
market share in 2007*. It is important to note, however, that no other company is positioned, in
terms of its offerings, better than Xerox in providing comprehensive document management
solutions to businesses. Also, competitors of Xerox suffer from a similar image problem; many
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of these companies are strongly associated with core competencies in an industry other than
document management.
Xerox Brand
Brand image is the identity of a company and, according to Mr. Wergan, Xerox has been
concerned for more than a decade now that its brand is underleveraged in the market place and
that it did not effectively represent the Xerox organization as it is today. In an interview with
press, he said "Our business had evolved; our brand, a $6 billion asset, had not. Our visual
system, although well designed, was designed for print media; customers now access us via the
Internet. We needed a brand we could protect and leverage in the digital environment, the key to
the future of Xerox." However, according to him, it was not clear to Xerox what the root of the
problem was. In particular, the company was not certain as to what the brand do stand for
existing clients, prospects, channel partners, and employees today as well as what the brand
should stand for instead. Xerox had already tried an unsuccessful rebranding initiative in 1994 in
the form of a new logo. Figure 1 presents the new logo, which was abandoned later, and the
original logo, which was in use at the start of rebranding initiative in 2007. Therefore, Xerox
team was cautious this time and decided that, if any rebrading effort should take place, it should
technology marketing, with creative and strategic capabilities, and agency with ability to
implement the solution globally. Also, understanding the brand and implementing the changes
would be a long term project, spanning somewhere between two to three years; therefore, the
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compatibility of the agency with the culture at Xerox was important. Following an extensive
search, Interbrand, a brand consultancy firm that is a unit of Omnicom Group, was selected to
To understand via systematic research the fit between the existing brand promises, the
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To decide a rebranding strategy that would align the brand image with what Xerox
Corporation actually is today and would provide a direction as to what Xerox should
become in the future. It was very important, however, that the new image would leverage
the existing equity in the brand while weakening the old but flourishing the new
capabilities of Xerox. This meant that dramatic changes in immediately visible brand
attributes (e.g., brand name) should be contemplated carefully. Also, the team saw a need
for intense and targeted marketing campaign or any other publicity that would magnify
the reasons for even small changes in the brand (e.g., a minor change in logo) so that the
media, customers, channel partners, and employees would start talking about what Xerox
is today.
To turn the rebranding effort into a vehicle for organizational restructuring, for change of
organizational culture, and for creating the right image of the brand and the Xerox
Corporation in the eyes of employees. Since the company has become a service-led
technology firm where employees created the product, to some extend, at the time of
delivery, the employees’ perception of the Xerox was very important. Therefore, the
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impact of rebranding process on the organization itself would be as equally, if not more,
important in achieving the desired brand image in the long-term as the actual immediate
As a first step in the rebranding process, Xerox and Interbrand undertook an extensive research
and spent more than 18 months interviewing some 5,000 people across the globe to identify the
perception of Xerox brand by existing clients, prospects, and employees. Sixteen Interbrand
offices in 20 markets handled Xerox's employee and customer research. According to the media
Most relationships in the B2B service-led technology marketing are established for long-
term with high start-up and switching costs; therefore, client companies seek for
dependability. The Xerox brand was perceived as dependable by the employees, existing
The service or product being marketed is too complex for client companies to understand
or to judge the quality; therefore, client companies seek for brands that instill trust.
Again, the Xerox brand was perceived as trustworthy by the employees, existing clients,
and prospects.
companies demand flexibility and adaptability. The Xerox brand was perceived as
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flexible and adaptable by the employees and existing clients, but flexibility and
adaptability was not readily associated attribute of the Xerox brand in the minds of
prospects.
Responders, but especially small and medium size business prospects, perceived the
In summary, these findings seem to suggest that rebranding should ensure that the new image
communicates Xerox’s continual evolution and resonates with large, medium, and small
business clients and prospects, channel members, and employees; it should be more
approachable, more open, more human, but slightly less formal brand; it should appear modern
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Table 1
Revenue and Profit Figures for Xerox Corporation and its Competitors
Source: Datamonitor
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Figure 1
The New Xerox Logo in 1994 and the Original Xerox Logo.
Logo in 1994
Original Logo
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