By mid-2001, the Xerox’s stock price had plunged from almost $70 in 1999 to under $5. The once-dominant market leader found itself on the brink of bankruptcy. Actually what happened?
Environment was rapidly changing, but Xerox was failure to adapt with changing environment. The world was quickly going digital but Xerox hadn’t kept up (they were in analog). On a broader level, while Xerox was busy perfecting copy machines, customers were looking for more sophisticated “document management solutions.” Customers wanted systems that would let them scan documents, print colorful paper, and print them on demand in network and so on. Unfortunately at first Xerox could not recognize the changing environment. But its competitors Canon, Sharp, Ricoh could recognize that. As a result the company faced the Bankruptcy. Finally Xerox has rethought, redefined, and reinvented itself. The company provided 100 innovative products in the markets. Now they are competing with IBM, HP. The company now “connects closely with customers in a content-rich digital marketplace.”