Xerox Case Study Analysis "Book In Time" by Xerox is a revolutionary product that presents some new opportunities for the company. It's simply a question of cost. Book-in-Time equipment allows a publishing house to produce a 300-page book for $6.90, a figure that previously could only be achieved for batches larger than 1,000 copies. A significant decrease in publishing costs, given that these cover up to 20% (including paper and book binding), would create the possibility of an increase in the profit margin. The Book-In-Time solution provided by Xerox is one of the most efficient solutions for publishing houses managing short-run books on demand. The advantage gained by larger publishing and printing companies who may have achieved economies of scale with large print runs would be fairly offset by the significant cost savings of Book-In-Time technology for short runs. Based on the analysis of on-demand conversion potential, several long runs can be targeted by Book-In-Time technology. For example, the subscription referral has 100% conversion potential, the downside is that it only covers 1% of the market share. College, university press, and professional textbooks all have a 50% application conversion potential. Clearly conversion potential is a key component in estimating the market size for Book-In-Time technology. In this sense we can estimate that the size of the on demand market would be 240,000 books per year. Details included in the appendix – 1At the time, Xerox had two clearly distinct options. The first option is to stick to what is best in printing, copying and distribution, exclusively with Book-In-Time technology. This means selling Book-In-Time equipment to all those elements of the value chain t...... middle of paper......s 1 24 50% 12Professional 7 168 50% 84Total 26 634 37% 234 ,58Appendix – IIXerox Book-In-Time Break Even Analysis (Retail Solution Option)Component Costs 895000Installation Costs per Unit 10000Additional costs 100005Sales commission* 982000Total variable costs 971000Contribution per unit** 529000Fixed costs 1500000Break-even amount*** 2.93Appendix – IIIEqui librium between digital printer and Book-In-Time solutionRun lengths Digital printer for short runs Book-In-TimeLess than 25 6.925 6.950 6.9100 11.47 6.9250 6.9500 3.85 6.9100 6.9 Digital short runs and Book-In-Time offer similar costs for run sizes: ((500-400)/( 11, 47 – 3.85)) * (11.47 – 6.90) = 249.34 + 100 = 349.34 or 350***Short run is selected because it offers the lowest cost for runs greater than 500