EDITING

Abstract Recently, most organisations have attempted to implement strategic customer management to obtain several benefits such as increasing profits and productivity by focusing on dominant customers. This paper aims to analyse the Xerox case study through three questions. Also, it provides a brief overview of Xerox and problems they faced in 2001. Moreover, this paper defines SCM and how it differs from traditional selling. Then it explains how SCM can deliver top and bottom lines through SAM and the sales organisation. The final question explains the implementation of SCM and some challenges that the company could face. Introduction As a result of rapid development in the marketplace, the competition and customer demand are growing; therefore, companies attempt to find the most suitable strategy to generate profits in the long term. Today, many companies replace traditional sales with building strong relationships with their customers. Xerox faced some challenges and difficulties in 2001. However, through the new strategy of SCM, it could be successful in 2002 according to its annual report. The purpose of this article is to analyse the Xerox case study and how they can overcome their problems with the help of strategic customer management. By answering three major questions, it is shown how SCM differs from traditional selling and how it uses customer portfolio management. Furthermore, by implementing SCM, managers can achieve top and bottom line goals. In order to achieve their goals, Xerox has applied six sigma and outsourcing strategies. Finally, Xerox can implement SCM by establishing the sales organisation and SAM. Undoubtedly, there are possible challenges that can be faced during the implementation. General information on Xerox Xerox is a global corporation that was established in 1906 in Rochester, New York, the United States. It produces electronic and digital equipment, for example “black-and-white printers and color, multifunction systems, photo copiers, digital production printing presses, and related consulting services” (wikipedia.com). Major problem Xerox faced several problem and went through difficult times. First, the company missed many opportunities, and it was threatened by its competitors such as Canon and Hewlett-Packard. Second, Xerox lost $86 million despite the profit of $220 million earned one year earlier. Third, Xerox stock share decreased from $62 to $8 (Knowledge@Wharton 2001). In addition, problems were not solved quickly enough because of “the bureaucratic corporate culture” (text book, p. 453).The important action In order to overcome the major problem that Xerox faced, the manger focused on two main strategies that have been mentioned above. Firstly, the company applied the six sigma strategy; secondly, they put emphasis on establishing relationships with dominant customers. How does strategic customer management differ from selling? How is it strategic?To grow sales is one of the most important objectives of a company. However, a company should focus not only on selling, but it should also consider increasing sales in the long term. In order to understand the differences between strategic customer management and selling, this section is going to explain the reasons for companies to implement strategic customer management. First …
Posted by: Naida Carew

Share the joy
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •