Xerox

1-What value does BIT create in the distribution Value Chain for books?

Analysing the Chain Value, we can see that it is divided in two different parts.

Chain Value

Support Activities

Primary Activities

Legend:

A - Control Management

B - Accounting/Financial Management

C - Human Resources

D - IT Infra-Structures

These are support activities, that don't have direct impact on the creation of competitive advantage for the company, but have it on efficiency. They create value indirectly, once that, at this level, companies can save money to invest in other development areas.

In Xerox case, A and D are the most visible on their structure. Control management is evident as they can assure the same unitary cost for 1 and 5000 bookrun lengths. Charging the same price to all consumers will be creating some advantages for the lower orders and creating a new market opportunity. Even though this can be a niche market, it will certainly bring new opportunities and satisfy consumer's needs. As for D, it's essential that a company like Xerox have a good IT Infrastructure. Moreover besides coordinating all the company on a virtual platform, they are the main stay of this new business. After digitalizing the books, they are put on available on the databases the company possesses. They will need a very good IT strategy to coordinate all the information, software and accesses in order to assure this model works and the business is profitable. After this well formed employees - C- are fundamental for the good working of the business and process coordination. As for the financial management and accounting, like everywhere, it will be necessary for the company to know its situation and where it can improve, knowing where to invest or where to reduce their costs. A big company like Xerox this is essential in order to create the bigger amount of value possible.

If the company can assure that support activities are better then the competitors, then it can be strategically more effective.

As for the primary activities we can consider the ones below; meaning that this is where the company creates value. Consumer conceives this value and it brings awareness that will make the difference from competitors.

E - Purchases - the company buys products to re-sale

F - Warehouse logistics

G - Marketing

H - Sales

I - Customer support service (post-sale service)

Here the main value will be obtained in Purchases and Sales. Considering that book acquisition could be done through access to manuscripts or literary agents and also some could be commissioned, gave Xerox the possibility to choose and to see where it could gain more value. As for H - Sales, this is where the company will get more value of all. Its results will contribute to a growth of the company and allied to a good marketing strategy in promoting the service, the revenues will be big. Now this marketing strategy should be focused in the niche market that is less than 1000 bookrun lengths because the price given will attract more consumers.

So BIT has very big potential to create value in the books value chain. With a well-implemented structure, a good sales force associated to a sober marketing plan, allied with IT software and good HR policy this new printing system can revolutionize the market. Therefore in conclusion we can affirm that it will create value for the company and for consumers.

2- Who will benefit from BIT?

Um sistema tгo inovador como o Book in time trarб benefнcios para varias entidades dependentemente de qual das opÐ*Ñ...es a Xerox decidir seguir, Michael Ruffolo defende que a Xerox deve vender o BIT sendo uma forma de reforÐ*ar a empresa em oposto estava Ranjit Singh que via uma oportunidade de negocio no BIT, imprimir e vender os livros.

Se a Xerox optar por vender o software, opiniгo defendida por Michael Ruffolo, os primeiros beneficiados serгo, sem duvidas, as editoras que irгo conseguir aumentar a mais valia entregue ao cliente, que й a razгo para este comprar naquela loja, ou seja, a imagem que o cliente tem da empresa tem um impacto directo na compra. O mercado da venda de livros tem um crescimento annual

de 5% por ano logo existe uma grande disputa entre as editoras que dominam o mercado, este software viria a diminuir drasticamente os custos, desde a nнvel de custos de stockagem Ðo custos de "produÐ*гo", logo os resultado contabilнstico seriam muito melhores. tambйm nгo esquecer que a imagem que transmitiam aos consumidores iria sofrer alteraÐ*Ñ...es, as editoras iriam conseguir entregar os livros num menor perнodo de tempo, podemos entгo concluir que o consumidores final tambйm iria sair beneficiado. Tambйm o canal de distribuiÐ*гo ira beneficiar pois assim as editoras tкm uma maior capacidade para distribuir margens superiores as actuais.

O desejo de adquirir este produto faz com que a Xerox seja tambйm uma das beneficiadas, ou seja, o preÐ*o do BIT, enquanto for a ÑŠnica a produzir, nгo serб um factor decisivo na compra e, tambйm, a sua imagem ira sair melhorada pois irгo ser associados a uma tecnologia de ponta, inovadora e dirigida para as necessidades dos clientes.

Se pelo contrario a Xerox seguir a ideia Ranjit Singh, e iniciar uma nova actividade comercial, atravйs ou da aquisiÐ*гo ou da uniгo com uma editora, os beneficiados serгo outros. O cliente final serб o mais beneficiado pois, alem da Xerox propor-se satisfazer uma necessidade que ainda nгo estava identificada, terгo livros de qualidade a um custo menor para empresa. A outra beneficiada serб a Xerox. O risco desta opÐ*гo й muito alto contudo acreditamos que o peso do nome serб reconhecido, a xerox й associada a uma boa impressгo logo esta imagem associada a possibilidade de adquirir um livro de qualidade e num menor espaÐ*o de tempo no processo encomenda-recepÐ*гo, acreditamos que "cobrirб" o risco inicial.