Businessmodel of Xerox

Customer Segments

Xerox targets customers from a wide variety of geographical locations and industries. Potential buyers include small to medium-sized businesses, educational establishments, governmental and public institutions, and Fortune 1000 corporate accounts. Xerox do not base any of their business segments on one customer demographic.

Of the three primary customer segments, each can be tailored to specific customers. Xerox’s primary revenue is generated via the Technology segment. In 2011, Technology accounted for $10.3 billion, Services accounted for $9.7 billion and Other accounted for $1.6 Billion.

Value Proposition

Xerox aims to save its clients’ money utilizing efficient technology and streamlined business services. The company has numerous products and services designed to increase productivity in the workplace.

By implementing more reliable and cost-effective printers, photocopiers, fax machines and all-in-one devices, Xerox reduces the need for excessive supplies and replacement of expensive equipment.

By outsourcing document management, IT solutions and Human Resources, clients reduce costs and waste, as well as increasing productivity and accessing revolutionary technology.

Channels

Xerox has four main sales channels, Product & Software Sales Advisors, Online Resellers, Local Dealers, Direct contact & Public Sector Procurement. Each of the those sales channels targets a specific product segment.

• Product and Software sales advisors target larger businesses and advise on the best solutions for a business’ individual requirements.
• Online resellers and Local dealers distribute Xerox products and function as a middleman to Xerox services. In addition, this channel focuses on small to medium-sized businesses.
• Public Sector Procurement delivers the same products and services as resellers though at discounted rates for any institutions in the public sector.
• Direct contact remains the favored method for business services, including business process outsourcing, human resource outsourcing, managed print services, transportation and parking solutions. Xerox is promoted through a variety of mediums, utilizing a strong brand name and innovator of its field. Advertisements are featured on television, in print and via its website and social media pages. The company is also displayed in trade shows and at business events.

Customer Relationships

Xerox is heavily centered on customer relationships, as most products are bought from Xerox directly and services are continued over time, forming lasting bonds.

With warranties, technical support and dedicated customer service teams, Xerox has earned a reputation in customer service.

Xerox’s website is detailed and extensive, allowing customers to serve themselves and resolve issues without needing to contact the support center.

Key Activities

Xerox designs, innovates and manufactures its own products at various facilities around the world. Some products are outsourced to third parties, widening the scope of Xerox’s available products and services.

Key Partners

Xerox consistently improves and develops new services via mergers and acquisitions of other businesses. Through targeting smaller, innovative companies, Xerox has developed a wide network of partners.

Many small businesses can partner with Xerox, providing a variety of printing, document, human resources and other business services.

Key Resources

Xerox has five global research centers based in: Palo Alto, USA; Mississauga, Canada; Webster, USA; Grenoble, France; Chennai, India. Each research center specializes in a specific aspect of Xerox’s operations.

Xerox relies on a wide range of partners to provide support, services and resell Xerox products.

Cost Structure

Xerox is a cost-driven company, aiming to save its clients’ money by streamlining certain business practices. Major cost drivers include research, development and engineering, which accounted for $577 million in expenses for the year ending December 31st 2014.

Other primary cost drivers include selling, administrative and engineering which totaled $3,788 in expenses for the year ending 31st December 2014. Asset impairment and restructuring also accounts for a large percentage of Xerox’s expenses.

Revenue Streams

Xerox utilizes multiple revenue streams, including the direct sale of the products it produces, paid support services such as business process outsourcing and document outsourcing and licensing fees.