Macro And Micro Environment Analysis Essay

Macro And Micro Environment Analysis Essay

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Macro and Micro-Environment
As a multinational, Xerox specializes in technology and services and operates under two different market environments, the macro and microenvironment. In the microenvironment, the company has influence while in the macro-environment the company cannot make market changes.
The changes in the company by adopting business services industry helped the company in enhancing efficiency as well as presenting quality services to its clients. The adoption also led to speeding up business processes that positively reflected in reduction of wastages such as idle time. The acquisition of Affiliated Computer Services (ACS) also strengthened its position. This was facilitated by the adequate financial background and resulted in better product innovation as well as superior innovation in technology. To gain better competitive edge, the company can focus more on research and development of environmental products
The initial effects started with the failure by the company to adapt to the rapid changes in the marketing environment which resulted in customers shifting focus from products such as standalone copiers in sharing of documents. At this time, scanners with the capacity to customize documents were what the market requirement at the time. As a result, Xerox was under pressure to develop products that were relevant to the market. In addition, there was the competition from multinationals such as IBM which offered better document management solutions. There was also the decline in customer relations at the time which had adverse effects.
Strengths /Opportunities
As the world advances, there has been a global increase in demand for the Xer...

... middle of paper ...

...f the losses to mitigate them. Diversification or further investing in the current portfolio would not have been the solution. Understanding the market needs is more than understanding technological advancement because innovation should be market driven. In this case, both strategies could still have been practical but with the customers’ needs in mind. Additionally, increasing production efficiency in retention of current business strategy could also have boosted its revenues by reducing wastage or idle time. Considering not all countries move at the same technological level, the company could still have invested in supplying the outdated products to places such as India or Africa. However, as the CEO there is a need to pursue the best strategy by focusing on what works our best but still have the customers ' mind at heart (Xerox Maps Business Service Strategy, 3).

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