1. Prior to 1990, Fuji XeroxÆs role in XeroxÆs global strategy was primarily as a sales organization for Xerox, although it had evolved into ôa fully integrated operation with strong research, development, and manufacturing capabilitiesö of its own (McQuade & Gomes-Casseres, 1). Fuji Xerox as established in 1962 was originally intended to be a marketing organization, and its job was to sell xerographic products manufactured by Fuji Photo Film; the Japanese government refused to approve the joint venture with Fuji as strictly a sales company, though, so the agreement was changed to give Fuji Xerox manufacturing rights as well (McQuade & Gomes-Casseres, 3).
One of the strategic benefits to Xerox of having Fuji on its team was the inside track this provided in terms of dealing with other Japanese companies. Fuji was run like a traditional Japanese company, and its vantage point in Japan enabled it to see other Japanese companies coming sooner, and it understood their development and manufacturing techniques, which could have represented a significant roadblock to Xerox had it not had Fuji on board (McQuade & Gomes-Casseres, 2). In addition, Fuji was able to provide the rest of the Xerox group with an ample supply of low- to mid-range copiers, and its 1989 revenues of $3.6 billion equated to 22% of the Xerox GroupÆs total revenues, worldwide (McQuade & Gomes-Casseres, 1).
Fuji Xerox enjoyed a great deal of autonomy in terms of its relationship with Xerox before 1990 (McQuade & Gomes-Casseres, 1). This appears to be due in part to the fact that Fuji XeroxÆs portion of the Xerox GroupÆs worldwide business was still relatively small at that point, so what Fuji Xerox did was not of as great a consequence to the Xerox Group as it became later on when Fuji XeroxÆs contribution had grown to be more significant.
2. Over time, Fuji XeroxÆs contributions changed, largely as a result of its introduction of the 914, a plain-p...