Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Business Economics Expert

Analysis of shifts in the demand curve.

The Xerox Corporation's share of U.S. copier revenues was close to 100 percent in 1970. According to a McKinsey consultant who worked with Xerox,

I can remember as late as 1975 looking at internal Xerox reports showing that market share was a word they had never heard of. They did not have any formal market share information. It had always been 100 percent. Right then, some people started to accumulate some information and the Japanese weren't even listed...The whole company, in terms of competition, was focused n IBM at that time. Everybody was convinced that if they were going to have any competition, it was going to come from IBM. When IBM came out with its first product, a shudder went through Xerox. Later, it was Kodak. Xerox totally missed the fundamental strategy of the Japanese, which was going in at the low end of the market and working up, going for the soft underbelly.

By 1980, Xerox's market share had fallen to 46 percent. One reason was the appearance of a number of low-priced copiers that were introduced in the late 1970s. Perhaps the most successful was the Savin 750, which was introduced in 1975. It had about a third of the parts and a third of the weight of conventional Xerox machines. It cost Ricoh, the Japanese firm that produced it, about $500 to $600 to build, and was sold to Savin for about $1600. Savin in turn sold it to the customer for $4,995. Xerox's comparable copier, the model 3100, sold for about $12,000. The Savin 750 averaged 17,000 copies between failures and took less than 30 minutes to repair. Xerox machines averaged 6,000 to 10,000 copies between failures and took up to twice as long to repair.

The following graph illustrates the revenues and costs of Xerox's model 3100:

1895_demand curve.jpg

(a) Elucidate effect do you think the appearance of the Savin 750 had on the demand curve for Xerox's model 3100?

(b) In response to the Savin 750, Xerox slashed price. Was this the rational thing to do? (use a diagram to illustrate your answer.)

(c) If the two machines sold for the same price, was the Savin 750 likely to outsell the Xerox 3100?

(d) Did the market structure of the copier industry change in the 1970s? if so, how?

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M918033

Have any Question? 


Related Questions in Business Economics

Assessment task descriptiontopicstudents will be required

ASSESSMENT TASK: DESCRIPTION Topic Students will be required to choose a specific enterprise (it should ideally be one with which they are somewhat familiar) and develop a sustainability indicators monitoring system for ...

Assignmentpart idirections please write a paper that is at

Assignment PART I Directions: Please write a paper that is at least two to three pages in length in which you address the questions below. Write your paper in APA format with at least one cited scholarly reference. Revie ...

Assignment -consider the following cobb douglas production

Assignment - Consider the following Cobb Douglas production function where Y is maize output, X 1 is labour input, and X 2 is the capital. Data for estimating this equation is given in the Table below. Y = β 0 X 1i β_1 X ...

1 there is a small country whose domestic demand and supply

1) There is a small country whose domestic demand and supply for a good x are given below (where P is the price of X) [drawing a demand and supply graph may be helpful to you, but is not required.] D: P=100-Q S: P=10+2Q ...

Allocation and allotments please respond to the following1

"Allocation and Allotments" Please respond to the following: 1. From the first e-Activity, examine and evaluate the disparity of Georgia budget allocation for education and property tax to the various localities. Based o ...

Assignmentinstructions1 select an illegal activity and

Assignment Instructions 1. Select an illegal activity and transform/mask its' true purpose with the disguise of a legitimate business operation. In other words, create a start-up business that would be viewed as a legal ...

In the united states as in most countries we value the

In the United States, as in most countries, we value the benefits of a free and competitive market. This suggests an interesting question: what if there were to be no Antitrust laws or other regulations on business activ ...

Chapter 1 managing changeq1 figure 176 shows how bad an

Chapter 1 Managing change Q1 Figure 1.76 shows how bad an implementation can become. Action needs to be taken to prevent this kind of situation. What would you recommend should be done? Q2 You are the project manager for ...

Free trade and restricted trade - benefits and cost1-2

Free Trade and Restricted Trade - Benefits and Cost 1-2 paragraphs APA format/ no plagarism Using your own words, define both free and restricted trade. What do you feel are the benefits and the cost to having free trade ...

What is the relationship between economy business and

What is the relationship between economy, business, and society? -6 page essay (includes only ONE page for references,but the cover page is not included in the 6 page requirement) -Double spaced -APA format

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen