The Recycler
  • Katun web banner December 2022 NEW
  • Biuromax Masthead web banner March 2024
  • G&G Feb 24 Masthead Banner

Xerox reveals ambitious reinvention plans

October 26, 2023

Xerox’s vision is its evolution into a services-led, software-enabled provider of avant-garde workplace solutions.

In the latest earnings call on 24th October, Xerox’s top brass, CEO Steve Bandrowczak and EVP & CFO Xavier Heiss unveiled their detailed plans for the company’s significant transformation, referred to as “Reinvention”.

This transformation marks a strategic repositioning for Xerox, aiming to harness emerging macro trends, especially the digitalisation of document workflows powered by AI, without side lining their core print business. Instead of abandoning their print heritage, Xerox sees “Reinvention” as building new capabilities on a solid print foundation.

The core of the reinvention focuses on geographic optimisation: by focusing their presence in selected markets, considering a shift from direct operations to a partner-led distribution model. Although this could decrease revenue initially, the approach aims to lay a more robust foundation for future growth.

Along with the geographic optimisation the next focus is on margin growth, or product and pricing refinement. Xerox plans to fine-tune its product offerings to magnify profitability. By streamlining products and introducing a more consumer-like touchless experience, the company aims to enhance client satisfaction. Simultaneously, simplified pricing models are being introduced to expedite decision-making in new business and renewals.

Cost cutting, aka Operational Efficiencies where Xerox anticipates an organisational simplification across IT, business support, and supply chain operations.

However, this isn’t merely a cost-cutting venture. Central to Xerox’s vision is its evolution into a services-led, software-enabled provider of avant-garde workplace solutions. This transition would necessitate organic and inorganic growth investments, targeting burgeoning markets such as managed IT services for SMBs and digital services.

By 2026, Xerox projects a rise in operating income by at least $300 million (€285 million), reverting to double-digit adjusted operating income margins. This optimistic projection includes investments geared towards diversifying revenue sources, emphasising high-growth markets.

CEO Bandrowczak stressed Xerox’s potential for growth within its existing territories, noting its services and product differentiation as pivotal. He elucidated that while there are opportunities in the Asian market, the required capital for logistics and supply chain establishment makes it less feasible than fortifying their existing foothold in the Americas and EMEA.

Heiss, meanwhile, spotlighted the financial trajectory of their Reinvention strategy. A substantial part of the anticipated benefits is expected from operational expenses (OpEx) optimisations, especially in areas like go-to-market strategies.

Will this “Reinvention” work? Xerox’s vision to evolve beyond its print legacy while emphasising a digital, service-focused future. The company’s leadership remains confident in its transformational journey, assuring investors sustainable growth and lucrative returns.

Categories : World Focus

Tags : Business Earnings Plans Reinvention Xerox

  • Cartridge Web April 2024 Web Banner
  • IR Italiana Web ad January 2021
  • GM Technology Web Ad March 2024
  • TN Core April 2024 Web Banner
  • G&G Big & Bold Web banner January 2024
  • Ink Tank April 2024 Web Ads
  • Biuromax March 2024 Banner
  • Static Control June 2022 Big & Bold Ad
  • Apex Web Ad March 2024
  • Mito Web advert July 2023
  • Denner Feb 2024 Web Ad
  • CET Web ad December 2023
  • Altkin Web ad March 2024
  • PCL April 2024 Web Banner
  • Zhono Web ad March 2024
  • ITP Web ad January 2021
  • HYB Web banner Jan 2024
  • Altkin Web ad March 2024
  • Denner Feb 2024 Web Ad
  • CET Web ad December 2023
  • Zhono Web ad March 2024
  • PCL April 2024 Web Banner
  • HYB Web banner Jan 2024
  • ITP Web ad January 2021
  • CET Web ad December 2023
  • PCL April 2024 Web Banner
  • Altkin Web ad March 2024
  • Zhono Web ad March 2024
  • HYB Web banner Jan 2024
  • ITP Web ad January 2021
  • Denner Feb 2024 Web Ad

The Recycler, Wittas House, Two Rivers, Station Lane, Witney, OX28 4BH, United Kingdom | Tel: +44 (0) 1993 899800 | Fax : +44 (0) 1993 226899
©2006-2023 The Recycler - Terms & Conditions - Privacy Policy including cookie use

Web design Dorset | Websites by Mark

The Recycler Subscribe Web ad January 2021
The Recycler Subscribe Web ad January 2021