Xerox Showcases Blueprint of Company Strategy

At the recent Investor Conference, the OEM has disclosed its business strategy and long-term financial goal as a separate business upon completion of the split.

Apart from enhancing its connected office portfolio and increasing participation in underpenetrated markets such as SMB, Xerox claims to continue to boost its 3-year strategic transformation program. With the program, the OEM expects to deliver at least $1.5 billion in productivity gains and cost savings for the company.

Xerox also maintained that it will support channel expansion, notably in the $20 billion multi-brand reseller space. The assistance includes providing partners a broader set of products, solutions, and vertically integrated tools, technology and service delivery processes.

The highlights of the new company’s financial goals include:

  • Expanding operating margins to be in the range of 12.5 to 14.5% in the near term by delivering at least $1.5 billion cumulative gross productivity and cost savings by 2018 from its strategic transformation program;
  • Increasing contribution from strategic growth areas to 50 percent of total company revenue by 2020 and to outperform the market over the long term;
  • Continue to generate robust free cash flow supported by annuity-driven revenues; etc.

According to, Xerox and its partner Fuji Xerox has spent approximately $1 billion on research and development with receiving almost 1,500 U.S. patents in 2015. The innovations cover inkjet continuous-feed printing, inkjet printing for packaging, direct-to-object printing, managed print services, and so on. The OEM claims it will include solutions for the new markets, such as printed electronics, augmented reality, intelligent assistants, and printed smart tags with analytics and real time multimedia.

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