1) What role has Fuji Xerox played in Xerox’s global strategy? How do you expect this role to change in the future?
The role that Fuji Xerox played in Xerox’s global strategy changed over time.
In the early beginning, even if Xerox had a clear technological advance that gave it a strong competitive advantage, the Japanese market was inaccessible due to its strong protectionist regulations that require firms to sell through local licensees or joint venture. As a result Xerox needed a Troy Horse to enter that market. In 1962, a joint venture was established by Fuji Photo Film and Rank Xerox in order to exploit the Xerox’s xerographic products license in Japan. The Xerox’s products would be manufactured by Fuji and sell by the Xerox Fuji. A specific schedule was agreed upon, calling first for the sale of imported machine, then the assembly of imported knocked-down kits, and finally the domestic production of copiers.
The Xerox Corporation itself was to have no direct relationship with Fuji Xerox, and would participate in the profits of the joint venture only through its share in Rank Xerox and a 5% Royalties on the sales of xerographic products. Even if the management remained entirely Japanese, Fuji Xerox adopted some business practice from the US, like the organizational structure and the rental system. Fuji Xerox was, at that time, only a way for Xerox to enter the Japanese high-end market.
The situation changed in 1969 when Xerox bought an additional 1% share of Rank Xerox from the Rank Organization, giving it 51% control of the joint venture. From now, Rank Xerox would be managed as a Xerox subsidiary and Fuji Xerox began ...