XEROX Corporation (XRX) Case Solution
1)Company Background
Xerox Corporation is an American Company that was established in 1906; it was founded in Rochester, New York. Haloid Xerox originally founded the company as Haloid Photographic Company with the products related to photographic paper and machine. Joseph C. Wilson (son of Haloid Xerox) took over the Haloid Photographic Company and later on changed the name of the company to Xerox Corporation.
The company is known for its document technology products. The company provides different technology services for the documents equipment. The fame of the introduction of the laser printer is attributed to the name of the Xerox Corporation. The company also introduced the first plain paper copier for commercial use. Moreover, the company is listed in fortune 500 companies list. The Company has its headquarters in Stamford, Connecticut.
In 1961, the common stock of Xerox Corporation was listed on the New York Stock Exchange. Thus with the rapid growths, the company also listed itself on the Chicago Stock Exchange in the year 1990. The company has expanded its operations by acquiring a series of the companies.
The company recorded growth until the year 1998 with profits growing with a rate of more than 20 percent; however, the company lost more than 38 billion dollars in just one year and six months. The stock price of the Xerox Corporation fell to $5 in 2001 from the stock price of approximately $70 in 1999.
2)Industry Background
The Xerox Corporation is a global company in the technology industry. The exchange traded fund for the industry is XLK. The technology industry is the most diverse and fast moving industry. With daily new innovations and technological advancement, the market for the players of the industry is highly elastic. Moreover, the volatility in the market is growing continuously.
The high volatility in the market reflects loss and profits; survival and shutdown of the companies will be decided on a single step decision taken by them. The high volatile nature shows that the prediction for the performance and growth of any company is unpredictable.
A high level of competition present in the market reflects that the companies should be highly customized in order to fully satisfy their customers. The companies are moving towards spending most of their budget in the research and development of the company. However, the trends show that the overall industry is growing, as it is backbone of all the other industries.
3)M&A Options
Xerox Corporation has a history of Mergers and Acquisitions. The Company has acquired and has had different joint ventures with leading companies around the world. The company is successfully managing a joint venture of Fuji Xerox with the Fuji Photo Film co. The objective behind this joint venture was to expand its operations into the Asia-Pacific region.
Rank Xerox acquired by the Xerox in 1997 looks after the operations in European countries, which later on spread to Africa and Asia. Xerox India is basically a subsidiary of Xerox, which is derived from Modi Xerox, which is responsible for management of Xerox Corp’s operations in the Indian region. NewField IT is also one of its wholly acquired subsidiaries.
In 2015, the company had revenues of more than 18 billion dollars with net profits of 474 million dollars. Xerox Corporation has more than 12,000 active patents and in 2015, the company spent more than 550 million dollars in Research and Development. The company has its offices in more than 180 countries with more than 130,000 employees................
This is just a sample partial case solution. Please place the order on the website to order your own originally done case solution.