Merger Between Xerox And Fujifilm To Form Fuji Xerox

Merger between Xerox and Fuji Film to form Fuji Xerox
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Fuji film is a Japanese company which was founded in the year 1934 in order to produce photographic films. Over the years, the company expanded its sales and developed digital technologies to deal with its film work. As well, Xerox is an American company founded in 1906 and deals with document technology products and the selling of document solutions and services. Its headquarters are located in Norwalk from the previous location of Stamford.
Fuji Xerox is a merger between a Japanese and an American company with its headquarters located in Tokyo Midtown. Its previous headquarters where in Akasaka Twin tower but changed in January 2007. Xerox and Fuji merged with the aim of developing, producing, and selling any products that are document-related as well as xerographic materials in the Asia-Pacific region. The merger was established in the year 1962 with an agreement of an equal ownership. It began by distributing the products of Rank Xerox and later, began to develop its xerographic machines. Today, the company is one of the best producers of most of the color printing devices. In 1982, Fuji Xerox did a great expansion into Australia and Malaysia through the purchase of distribution rights. Fuji film raised its amount of venture in Fuji Xerox to 75% in the year 2001 while Xerox did a transfer of its operations to Fuji Xerox in 2000.
One of the main reasons as to why Xerox merged with Fuji was as a result of its downfall. The downfall began in the manner in which Xerox funded its subsidiaries hence making it difficult for them to maintain a steady sale of the company’s products. As a result, Xerox was unable to produce a dedicated salesforce that would in turn market and sell its products accordingly due to the lack of incentives that are a key motivating factor to employees. As well, Xerox was not able to adapt to the market competition since other companies were already taking advantage of the technology by developing similar products as Xerox. A good example is the Cannon Company whose products are rated at a lower price as compared to the prices of Xerox items. A good example is the color printer. Therefore, this reduced the market share for the Xerox products since most of the customers switched in purchasing the Cannon products (Sachamanorom & Senoo, 2016). Some of the customers argued out that the Cannon products were of better quality as compared to those of Xerox. Due to poor management, Xerox failed in improving the quality of their products in order to survive the competition. A good financial theory that can best describe this situation is the general equilibrium theory which tries to analyze the manner in which demand, supply and prices changes in the economy. In the case of Xerox, the demand for their products was affected by several factors such as price and quality. As a result, it was difficult for them to outdo the competing companies which were offering better deals. Hence, the demand for the products of the competing companies increased resulting to the beginning of Xerox’s failure. Xerox had developed a large market share which would have been convenient for any company to merge with the...