This ppt covers how the xerox created monopoly in the market and how the monopoly turned into monopolistic competition.

1. -
MONOPOLISTIC
COMPETITION WITH
CASE STUDY
Atharva Kulkarni- 4222 Pratik Solankhe- 4286
Aniket Dhongdi- 4280 Amlan Kashyap- 4223
Saurabh Jadhav- 4207 Aviraj Hasbe- 4243

2. MEANING -
It refers to a market situation in which there are large
number of firms which sells closely related but
differentiated products. Markets of products like soap,
toothpaste, AC etc. are examples of monopolistic
competition.
MONOPOLISTIC
COMPETITION
-

3. FEATURES
LARGE NO. OF BUYERS AND SELLERS
Each firm acts independently and has limited control
over the market price.
Also, no individual buyer will be in a position to
influence the market price.
PRODUCT DIFFERNTIATION
It means differentiating the products on the basis of brand, size, colour,
shape etc. Each firm is in a position to exercise some degree of
monopoly through product differentiation. The product of a firm is
close, but not perfect substitute of other firms.
NON-PRICE COMPETITION
it means competing with other firms by offering free
gifts, favourable credit terms etc, without changing
prices of their own product.
PRICING DECISION
A firm under this market is neither a price taker nor a price maker.
However by producing a unique product or building reputation,
each firm has partial control over the price.
FREEDOM OF ENTRY AND EXIT
Every seller has the freedom to enter or exit the industry. There are no
artificial and natural barriers for entry of new firms and exit of existing
firms. It ensures that allfirms will earn only normal profit in the long run.

4. Buyers and sellers don't have
perfect knowledge about the
market conditions. selling
costs create artificial
superiority in the minds of
consumer. As a result, a
particular product is
preferred by customers even
if other less priced products
of same quality are available.
Selling costs are the expenses
incurred on marketing, sales
promotion and advertisement
of the product. Under
monopolistic competition,
the differentiated products
are made known to the
buyers through selling cost
SELLING
COST
LACK OF
PERFECT
KNOWLEDGE
FEATURES

5. DEMAND
CURVE :
Under monopolistic
competition, large
number of firms selling
closely related but
differentiated products
makes the demand
curve downward
sloping. It implies that a
firm can sell more
output only by reducing
the price of its product.
As seen in the fig. output is
measured along the x-axis and
price and revenue along the y-
axis. At OP price, a seller can
sell OQ quantity. Demand rises
to OQ1 when price is reduced
to OP1. So, demand curve
under monopolistic
competiton is negatively
sloped as more quantity can be
sold only at a lower price.

6. 6
XEROX AT A GLANCE
• Xerox Holdings Corporation is an American global corporation that sells
print and digital document products and services in more than 160
countries.
• Xerox is headquartered in Norwalk, Connecticut (having moved from
Stamford, Connecticut, in October 2007, though its largest population of
employees is based around Rochester, New York, the area in which the
company was founded.
• The company purchased Affiliated Computer Services for $6.4 billion in
early 2010. As a large developed company, it is consistently placed in the
list of Fortune 500 companies.
• On December 31, 2016, Xerox separated its business process service
operations, essentially those operations acquired with the purchase of
Affiliated Computer Services, into a new publicly traded company,
Conduit.
• Xerox focuses on its document technology and document outsourcing
business, and continues to trade on the NYSE.
• Xerox also released a 4045 desktop laser printer whose cartridges
could print 50,000 pages (instead of 5,000), but the model never caught
on, and Xerox abandoned future efforts to focus more on its core
businesses.
XEROX AT GLANCE

7. COMPETITORS
First photocopier of company - Xerox 914
The company came to prominence in 1959 with the
introduction of the Xerox 914, "the most successful single
product of all time." The 914, the first plain paper photocopier,
was developed by Carlson and John H. Dessauer. It was so
popular that by the end of 1961 Xerox had almost $60 million in
revenue. The product was sold by an innovative ad campaign
showing that even monkeys could make copies at the touch of a
button - simplicity would become the foundation of Xerox
products and user interfaces. Revenues leaped to over $500
million by 1965
XEROX AS MONOPOLY

8. UNIQUE SELLING PROPOSITION:
IBM entered the copier
market in April 1970
Kodak made its entry into the
market in 1975
Canon, 3M, Panasonic, Ricoh,
Savin, and Sharp copiers entered
the market in late 1980s
Xerox annual
revenue for 2019
was $9.066B, a
7.77% decline
from 2018.
HOW THE MARKET TURNED INTO
MOPOLISTIC COMPETITION :
In 1970s, Market share was 96%
but till the end of 1980s, the
market fell down to 45%

9. Statistics
9
26%
22%
17%
15%
11%
9%
Market Share in 2020
Canon
Ricoh
Xerox
Sharp
Epson
Others
100%
Market Share in 1946
Xerox

10. PRICING AND MARKETING STRATEGY OF XEROX
• It uses optimal pricing
for some products
where fixed price for
base product and
separate price for
accessories.
• Charges greater price
for online selling.
• Xerox uses psychological
pricing where it prices
products so they seem lower.
• Introduce new product with
price penetration strategy
where it offers an initial
lower price than competitors
to gain market share.
• Current pricing strategy
to set price level that
Xerox follows is a
competitive based
pricing strategy.
• It also takes cost in
consideration to set
prices.
• Sells product at higher
price because it offers
more features.
• It uses product bundle
pricing where products
are bundled together and
sold at lower prices.
• Xerox should introduce
discounts and
allowance
• Lowers prices for short
period and attract
customers.

11. SWOT ANALYSIS
11
WEAKNESS
THREAT
OPPORTUNITY
STRENGTH
01
 Leading market position in
document technology.
 Strong product portfolio in
document technology
 Annuity revenue model.
04
 Increasing adoption of
paperless workflows
 Intense Competition.
02
 Overdependence on mature
makets.
 Decreasing revenues.
03
 Positive outlook for digital
printing.
 Strong growth in MPS market
 Global healthcare BPO market
growing .

12. REASONS FOR DOWNFALL
11
Patent rights of
photocopier were not
renewed
Xerox did not renewed the patent
rights of photocopier which expired in
1965.
Difference in the opinion
of top management
Huge disparities in the opinion of the
top management which led to their
downfall
Limited Research and
Development
No improvement in the
photocopier machines
and accessories.
.
Stiff competition in
technology market
Xerox faced a cut throat
competition from IBM,
Adobe, Microsoft, Kodak.

13. It is clear that to remain competitive in today's
globalized world requires constant alternation to
the competition and continuous innovations on
the part of the firm.
The theory of "SURVIVAL OF THE FITTEST" holds
good in this non-biological world known as the
MARKET.
Xerox invented photo copying and for decades
flat out dominated the industry it had created.
But Xerox's harrowing experience provides a
cautionary tale of what can happen when a
company even a dominated market leader fails
to adapt to its changing marketing environment
CONCLUSION :