Xerox companyis one of the giants of the machine industry in the world , in the 1960s, Xerox company brought out the first office duplicator (model for Xerox914), which changed the way people work, andxerox monopoly the world copier market for more than 10 years.As Japanese companies such as Ricoh, Canon has entered the copier market, the competition became increasingly fierce in the industry, but Xerox ignored global competitive threat intelligence research, it can't timely adjust management strategy, and finally forced to enter a state of defense By the early 1980 s, Xerox copier global market share fell from 82% to 35% . Until then the xerox began to analyze Japanese products and prices, the result surprised them, Japanese Canon has taken the same cost price of xerox to sell photocopiers. At first, as other American companies, Xerox suspected the poor quality of Japanese products, but it proved not; then Xerox thought Japanese products adopt low-cost strategy, the price is so low certainly that they can't make money, the result was wrong again. After a detailed analysis of the competitive intelligence of Japanese products , xerox company found that rivals are only had half of the time of the company in the marketing strategy of new product introduction and the manpower, and equipment installation time is only one-third of the company, this is the key reason of competitors can significantly reduce the price.
In order to regain the lost market share, Xeroxstrengthen the collection processing and analysis of the competitive intelligence work, and decided to on the basis of market research of company, established a dedicated competitive intelligence research, coordinated and leaded the whole company competitive intelligence work. In order to get the information all the time, Xerox carryed out the study of competitive intelligenceon three levels:
1.Global, Xerox sale department is responsible to collect and analyze the influence of the long-term plans or strategic plan information.
2.National, the customer service department collect competitive intelligence in America.
3.Regional, make full use of the company all over 37 sales outlets in the United States, collect and analyze information in region by their respective marketing manage. and establish competitive database and the customer database.
And in order to implement competitive intelligence analysis, Xerox also set up the competition evaluation laboratory, organize the implementation of reverse engineering, specifically to analyze competitor’s products or products that have a competitive threat. Intelligence experts buy these products through legal channels and open it, analyzed its every detailed , including every detail feature and every advantage and disadvantage, especiaAnd in order to implement competitive intelligence analysis, Xerox also set up the competition evaluation laboratory, organize the implementation of reverse engineering, specifically to analyze competitor’s products or products that have a competitive threat. Intelligence experts buy these products through legal channels and open it, analyzed its every detailed , including every detail feature and every advantage and disadvantage, especially the patent technology and the application of the secret technology and its characteristics the company may face, and understand the way competitors reduce costs, and sent the analysis report to the designers and engineers, enabling them to understand competitors' product development dynamics. The competition strategies of the xerox made them finally regained the market share from Canon.