CASE STUDY: Competitor Analysis

STAYING COMPETITIVE.

TESTING ASSUMPTIONS.

How Xerox conducted competitor analysis and found their assumptions were wrong. Resulting in a chance to optimise production costs.

choosing the right strategy

1 year.

Time span.

Optimised costs.

Actual outcome.

XEROX.

When Japanese copier manufacturer Canon began to enter the US market, Xerox was convinced that the company were selling products below the cost of manufacture, as they were below the manufacturing costs for Xerox.

The problem:

Xerox assumed that there was no perceivable way that Canon was able to sell these products at the price point they were. How could Xerox possibly compete?

THE SOLUTION; COMPETITOR ANALYSIS.

Luckily this was a product-specific problem, so getting hands on the product in question was key.

By taking Canon's copier product, and dismantling it into it's constituent parts (physically, as well as figuratively), Xerox was able to send the elements to their own distributor, in order to estimate how much they all cost.

By conducting this analysis they found insight on two levels; firstly, the competitor was using a more optimal building strategy (using two screws in areas that only needed four, and Xerox were using six), and secondly, the sourcing of the elements were cheaper.

Xerox then set out on a mission to optimise as much of the build, distribution, and overall cost in order to remain competitive on pricing.

OBSTACLES.

business strategic problems

Existing assumptions on the industry, and cost of business had blinded Xerox to the possibility that there were cheaper ways of doing things.

The initial reason for sending the parts to their distributor was to raise a court case against Canon, and have tariffs put on their products. This would have been costly, and would have failed.

By being forced to conduct some competitor analysis, existing assumptions had been tested, and Xerox now were able to reduce the cost of production, lowering sales and sustaining their competitiveness in the market.

data analytics for competitor analysis

GAIN THE COMPETITIVE EDGE.

We identify the competitive edge you hold in the market, and help you keep it. By analysing the industry, and your competitors, we identify potential opportunities.

About the company.

An American corporation that sells print and digital document products and services in more than 160 countries.

Industry.

Information Technology.

Company size.

24-25k.

data analytics for competitor analysis

GAIN THE COMPETITIVE EDGE.

We identify the competitive edge you hold in the market, and help you keep it. By analysing the industry, and your competitors, we identify potential opportunities.

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check list for strategy consulting

BUSINESS PLAN TEMPLATE

If you're struggling to put together a clear strategic business plan, we've put together a template for you to fill in.

choosing strategic plan

COMPETITOR FACTSHEET TEMPLATE

We've created a free factsheet template for your basic competitor analysis needs. Simply download the template as use as you like!

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