Xerox_Corporation__The_Customer_Satisfaction_Program

Xerox Corporation: The Customer Satisfaction Program CASE: XEROX CORPORATION: THE CUSTOMER-SATISFACTION PROGRAM THE PROBLEM The problem for Xerox was to ü come out with a guarantee for its products that would be unique(P13,para7), which would lead to ü greater customer satisfaction and would also drive the organization to greater levels of performance(page13 para5) , so as to achieve ü the immediate objective of increasing sales by 5%-10% while applying the guarantee to all Xerox products for a period of three years and servicing them directly(page14,end Para). ENVIRONMENT SCAN Ø Mature and intensely competitive market; 23 companies battling for market share; slow growth rate of 2.9 CAGR Ø Three categorized product markets: · Low-Volume: Product Capacity of $60,000/- ;Major competitors: Kodak, with presence of Canon,Konica,Lanier in lower end of High Volume Ø Xerox had four Market Segments: § Commercial Major Accounts(CMA):Customer size 5%,revenue generated 32% § Named Accounts (NA): Customer size18%,revenue generated 28% § General markets: Customer Size 62%, revenue generated 15% § Government/Education: Customer size 15%,revenue generated 25% Ø Competitive Advantage: § Only full-line supplier with products ranging from the low-end of the low volume to high end of the high volume § Market leader in higher priced Mid- and High- volume segments § Dedicated National Service Organization- USMG , for installation and Maintenance of Xerox products Ø Eroding market Share: § Market share dropping from 100% in the 1960s to 40% in 1980 § IBM and Kodak guarantee, customer, xerox, market, service, volume, segments, product, performance, high, response, na, exhibit, cma, satisfaction, mid, markets, higher, high-volume, weightage, time, three, share, reliability, products, critical, response-time, replacement, presence, needs, kodak, generated, discretion, alternatives, while, survey