This Week in Imaging: Turnaround Time at Xerox?
This week’s news was dominated by Xerox, which at its Investor Day meeting this week, outlined a broad set of re-organization and cost-reduction goals, all designed to improve the bottom line, and all of which can ultimately be seen as the handiwork of activist investor Carl Icahn, who has long criticized Xerox management. Now that Icahn-backed management is in charge at Xerox, it remains to be seen how this will all pan out.
While some have compared Xerox to Kodak – the latter of which is currently trading at about $3.00 per share versus $29 per share for Xerox – we don’t agree. We believe Kodak’s woes were largely due to two key pivotal decisions: failure to capitalize on digital photography, which it’s credited with inventing, and a decision to enter the consumer inkjet-printer market at the height of the 2008 recession and just when consumers were turning away from at-home printing. (Xerox also had a brief foray into consumer inkjet printing – remember Blue Dog? – back in the ’90s but wisely got out of it.) It’s hard to see how Xerox has made such bad decisions, at least recently, but instead, like others, has had to deal with declining office print volumes for over a decade.
Icahn’s criticism of Xerox, however, has been that Xerox’s cost-cutting hasn’t been effective and that it’s become an unwieldy organization that he’s said is complicated and time-consuming to do business with. We can’t say if that’s true or not, but the new regime certainly believes it and is out to change it in a big way.
This Week in Imaging: