How the Industry Feels About Xerox’s Acquisition of Lexmark: A Survey Breakdown
When Xerox announced its acquisition of Lexmark, it sent shockwaves through the office technology and managed print services (MPS) industry. In a recent anonymous survey with 100 respondents, we gathered insights into how dealers, end-users, and industry insiders perceive this move. Here’s the breakdown of the results, with some hard truths and edgy analysis to frame what might lie ahead for Xerox and Lexmark’s future.
Survey Highlights at a Glance:
1. Mixed Sentiments About the Acquisition
17% feel very positive, while 26% are somewhat positive about the acquisition.
On the flip side, 23% are somewhat negative, and 10% are very negative.
A sizeable 24% remain neutral, indicating a wait-and-see approach from a significant portion of respondents.
While there’s some optimism, over a third of the industry is skeptical. Xerox has work to do if it wants to win over its critics.
2. Does This Align With Xerox’s Strategic Goals?
45% believe it does, showing that nearly half see a coherent strategy behind this acquisition.
However, 16% disagree, and 39% are unsure.
A company of Xerox’s caliber can’t afford a 39% “unsure” rate. Clear communication about strategic objectives could convert these fence-sitters.
3. Product Innovation: Boom or Bust?
25% foresee more innovation, likely from combining R&D resources and expertise.
29% predict less innovation, citing potential restructuring and cost-cutting measures.
A majority (46%) expect no significant change.
Innovation enthusiasts might be disappointed if Xerox doesn’t deliver something groundbreaking soon.
4. Dealer Program Concerns When asked about potential impacts on Lexmark’s dealer programs:
40% fear a reduction in dealer support.
20% worry about pricing structure changes.
19% are concerned about product availability.
Only 13% have no concerns, while 8% listed “Other” concerns.
Dealer Reality Check: Dealers drive sales and customer satisfaction. Neglecting their needs post-acquisition could be a costly mistake for Xerox.
5. Restructuring: A Foregone Conclusion?
A whopping 75% believe significant restructuring is likely within the next 12 months.
Only 18% think it’s unlikely, while 5% are unsure.
No sugar-coating it: The industry anticipates major changes, and Xerox’s next moves will be closely scrutinized.
6. Anticipated Changes to Lexmark’s Operations
20% foresee minimal changes, suggesting a “if it ain’t broke, don’t fix it” approach.
51% expect moderate restructuring, while 27% predict a complete overhaul.
Takeaway: The majority braces for notable disruptions, but not everyone agrees on the scale.
7. Areas Likely to Be Restructured Respondents could select multiple areas where they think restructuring will hit:
78% anticipate workforce reductions.
66% expect adjustments to dealer programs.
58% predict regional office closures.
57% foresee product portfolio consolidation.
53% believe supply chain changes are on the horizon.
Xerox’s challenge is to balance cost-cutting with maintaining operational efficiency and dealer trust. Workforce reductions and regional closures may save money but could damage morale and customer service.
8. The Future of Lexmark’s Branding
24% believe Lexmark’s brand will remain intact, while a strong 69% think Lexmark will be absorbed into Xerox branding.
Only 7% are unsure.
Brand loyalty is real. If Xerox erases Lexmark’s identity too quickly, it risks alienating Lexmark’s existing customer base.
9. Dealer and Customer Relationships Post-Restructuring
68% believe restructuring will weaken relationships.
Only 17% think relationships will strengthen, while 15% foresee no significant impact.
Sobering Statistic: If over two-thirds of respondents expect weakened relationships, Xerox has a steep hill to climb in reassuring its dealers and customers.
What This Survey Tells Us:
The Good: There’s a fair amount of optimism about Xerox’s ability to align this acquisition with its strategic goals. If managed correctly, combining Xerox and Lexmark’s strengths could lead to a powerhouse in the print and MPS space.
The Bad: Dealers are wary. The survey reveals significant concerns about dealer support, restructuring impacts, and Lexmark’s future identity.
The Ugly: Workforce reductions and weakened dealer relationships are viewed as almost inevitable, and product innovation is hardly expected to skyrocket.
Key Takeaways for Xerox:
Communicate Transparently:
Address the 39% unsure about strategic alignment directly.
Explain how dealer programs and customer relationships will be protected.
Prioritize Innovation:
Convince the 46% expecting no change in innovation that this acquisition isn’t just about cost-cutting but about delivering value.
Respect Lexmark’s Legacy:
Don’t rush to eliminate Lexmark’s branding; leverage its existing equity.
Engage Dealers Early and Often:
Reassure the 40% concerned about dealer support that they remain a priority.
Deliver tangible benefits to dealers early to offset fears of disruption.
My Two Cents:
The Xerox-Lexmark acquisition has the potential to reshape the industry, but the road ahead is fraught with challenges. The survey reveals skepticism about restructuring and its impact on dealers and customers. For Xerox to turn this acquisition into a win, it must navigate these waters carefully, addressing concerns with transparency and bold action.
-=Good Selling+-
PS
This was a ten question poll for our survey. In a few days we'll post the comments to question #10.
If Xerox were to “gut” Lexmark, how would it affect your business?
You can view the questions of the poll here, keep in mind that this is only open to Print4Pay Hotel members. Becoming a member is Free
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