Xerox Porter’s 5 Five Forces Model: Detailed Analysis (2021)

Company Overview:

Xerox is a diversified company that deals in imaging and data services. According to the Xerox website, they focus on helping companies transform their business through their key service lines: document management; printing and personal systems; IT infrastructure; consulting, outsourcing, and support services. Its main industry is office equipment manufacturing with its most recognized brand being the Xerox copiers. Xerox is headquartered in Norwalk, Connecticut. The company’s mission statement on their website says that they aim to continually empower people by bringing them together with information and knowledge of all kinds. Since its beginnings in 1906, it has grown up into one of the top four manufacturers in the United States. The company’s first major acquisition was the purchase of IBM copiers, which began their move into office equipment. Let’s go over Xerox Porter’s Five Forces Model.



Xerox Competitive Rivalry:


Xerox is a brand that means office equipment and personal photocopying. It has many brands that have been around for a long time, like the Xerox copiers. The competition in the industry of office equipment is very high since there are so many companies that make products as Xerox does. One good example of this would be Kodak, another company that makes office equipment. Xerox is the main competitor of Kodak in this market. Many of Xerox’s products are simple things like printers which are made by many other companies as well. One good example of a company that has similar competition with Xerox would be Samsung since they make printers according to their website. Xerox copiers are very similar to Samsung copiers, and since they both make office equipment; their competition with each other is high.



Bargaining Power of Suppliers:



The job sector that would be the most impacted by this company’s decisions in manufacturing. This company has a lot of impact on its suppliers because it is a very large company that purchases a lot of goods from many different companies. This business’s decisions will affect the suppliers, whether they are using their own resources or outsourcing to make the products for them. Xerox has major power over suppliers due to its size and place in the market, but some have even more bargaining power than Xerox. There are many other companies in Xerox’s industry that could be potential suppliers; this would mean that their bargaining power would vary depending on the types of resources they have and how much demand Xerox has for them. 



Bargaining Power of Buyers:



There is a wide range of people that this company has to deal with, primarily because it makes office equipment and individual copiers. The end consumers who buy their products are very important for this business’s success since the more people they have bought their product, the more money it is likely to make. But since their main industry is office equipment and copiers, they also have to deal with businesses as well as individual consumers that purchase their products. A good example of a company with greater bargaining power than Xerox would be Samsung Electronics because this is a company that produces many electronic products for both business and individual consumers. Their products are very diverse so they have a wide variety of people to deal with, but their great bargaining power comes from the fact that they work with many different businesses, which Xerox doesn’t do.



Threats of New Entrants:



This company has been around for over 100 years and has been doing very well in the market it is in. One good example of a company that could be considered a threat to this business would be IBM since they make office equipment as well and have much more money than Xerox does. But ever since Xerox bought out IBM’s copier line, their original threats of new entrants no longer exist. 



Xerox Threat of substitutes:


In terms of substitutes, this company has many because there are so many different companies that make office equipment. Xerox’s main competitors would be Samsung, HP, and Canon, but there are also many other companies as well. The main reason why people use Xerox products is because they trust the brand, but if another company comes out with a new product that is significantly better than Xerox’s, they could lose many of their customers.



Xerox Porter’s Five Forces Conclusion:


Xerox has a long history of doing business and has been very successful all around the world with sales coming from over 160 different countries. This company has grown into one of the biggest companies in the world and is continuing to succeed in its market. Xerox has had many different threats during their time in the business but they have been able to continuously grow and develop due to new technologies and continuous innovation.

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