Page 185 - 100 Great Business Ideas: From Leading Companies Around the World (100 Great Ideas)

79 SURVIVING
A DOWNTURN

Several clear principles and techniques can help turn a business
around from the brink of disaster.

The idea

By the end of 1999, significant problems emerged at US technology
giant Xerox. There was too much change, too fast; new, opportunistic
competitors emerged; economic growth was slowing; key decisions
were flawed. These issues combined with regulatory and liquidity
challenges to bring about a massive decline in revenues, the
departure of customers and employees, and debts of $19 billion.
Despite this, Xerox, led by CEO Anne Mulcahy, survived the
downturn and staged a remarkable comeback. The business had
doubled its share price by 2006, reduced costs by $2 billion, and
achieved profits of $1 billion in 2005.
The foundation for a revival in Xerox came from a strong brand
with a loyal customer base, talented employees, recognition of the
need to listen carefully to customers, and greater responsiveness.
The key was to win back market share with a competitive range of
new products.

In practice

Several factors underpinned Xerox’s resurgence, outlining the key
areas to address:

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