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Xerox - Book in time Raja Kurapati Marketing 508 - 08/04/05 Xerox Case Study Analysis Xerox's "Book In Time" is a revolutionary product, presenting some new opportunities
Xerox: Book-In-Time SNA VIII Solo, 15 ? 16 September 2005 1 THE EFFECT OF TRANSITORY EARNINGS ON THE USE OF E/P RATIOS IN CORPORATE VALUATION: EMPIRICAL EVIDENCE
products and had not focused on new product opportunities until the development of its "Book In Time" product. This revolutionary product presented some new opportunities
do you expect to be the forecasted demand for the BIT project? Please do quantify your answer. Xerox Book-in-Time (BIT) was a low cost digital system of true customer
systems include color and black-and-white printing and publishing systems, digital presses and "book factories", advanced and multifunction systems, laser and solid
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Raja Kurapati
Marketing 508 - 08/04/05
Xerox Case Study Analysis
Xerox's "Book In Time" is a revolutionary product, presenting some new opportunities for the company. It is simply a matter of costs. The Book-in-Time equipment allows for a publishing company to produce a 300-page book for $6.90, something which could have been previously reached only for lots larger than 1,000 copies. A significant decrease in publishing costs, given the fact that these cover up to 20 % (including the paper and binding the book), would create the possibility of an increased profit margin.
Book-In-Time solution provided by Xerox is one of the most efficient solutions for publishing companies running on demand for short-run books. The advantage gained by larger publishing and printing companies that may have achieved economies of scale with large print runs would be evenly compensated with the significant cost saving short run Book-In-Time technology.
Based on the analysis of the on demand conversion potential, several long-runs can be targeted by the Book-In-Time technology. For example, subscription reference have a 100% conversion potential, downside being it just covers 1% of market share. College, University press and Professional textbooks all have a demand conversion potential of 50%. Clearly conversion potential is a key component in estimating market size for Book-In-Time technology. In this sense we can estimate market size for on demand market would be 240,000 books per year. Details enclosed in appendix 1
At the moment, Xerox had two clear distinct options. First option is to stick with what is best at printing, copying and delivering exclusively the Book-In-Time technology. Meaning, selling Book-In-Time equipment to all those elements of the value chain that may be interested. This includes publishers and printers (See Appendix - II for break even analysis).
Major advantage with this option is...
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