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Benchmarking at Xerox By the late 1970s, Xerox was losing significant market share to its Japanese competitors. Not only were the Japanese products excellent, but also, to Xerox's dismay, they were sold for less than Xerox could manufacture them. Xerox found that it had nine times as many suppliers as the Japanese companies and made seven times as many manufacturing defects. Lead times for new products were twice as long, and production setup times were five times as long as the competitors'. Xerox introduced benchmarking in 1980. Its processes and practices were benchmarked against the best in and out of its industry.
As a result of these efforts, Xerox saved itself. Today, Xerox is a worldclass competitor, capable of holding its own in terms of technology, price, service, and customer satisfaction against any competition. Benchmarking at Xerox has reached into every facet of the company and remains a primary feature of the corporation.
1. What do you think motivates Xerox to invest in benchmarking?
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