Rank Xerox 2 Question

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2. What are the arguments FOR and AGAINST introducing the new line? First of all we have to mention that in 1970’s Xerox had lost their market shares due to expiration of their patents and appearance of new competitors in Japan. They have had changed their strategy to more customer and employee satisfaction oriented by providing high quality products and regained market shares which gained them ability to counterattack. Not solid financial position, that would be one of the arguments not to introduce new line, but as we speak further they have come up with something new in order to gain market shares. New markets became available with fall of communism and opening its borders to the world. But these markets are not developed enough for “green” products. National Policies within Europe were clear on the legal requirement of disclose recycle content to the customer, but how this was to be disclosed and with which metric was not always clear. In addition, language differences created terminology problems. As an example word recycling has a different definition in almost every country and could misstate intended meaning. In Italy definition of recycling is to include waste incineration with the purpose of energy generation. Pricing Policy varies as development of countries differentiates. As an example Swiss, Netherland, Austrian, Denmark and German demand for “green” products expected to be high; moreover, customers are willing to pay premium on environmentally friendly products, whereas U.K. and Southern Europe customers are much less enthusiastic for what they perceive as a non-new product. Customer acceptance remained unknown as this type of product is new to the market and as a consequence to previous arguments different type of marketing approaches would be required in each
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