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Fuji Xerox Revamps Domestic Sales Structure
to Accelerate Services Business

Transforms domestic sales subsidiaries into wholly-owned subsidiaries
and centralizes direct sales force to metropolitan areas
August 23, 2005


With the objective of innovating sales and marketing to accelerate its services business, Fuji Xerox Co., Ltd. will make all 34 sales subsidiaries into wholly-owned subsidiaries. The new domestic sales structure comprising direct marketing and sales subsidiaries is set to get underway on October 1, 2005.

Previously, Fuji Xerox and its sales subsidiaries took responsibility for each customer depending on the size of the account, however, with this change, all sales reps in Japan will focus on the services business. The company's direct sales teams will be concentrated into the key urban areas of Tokyo, Nagoya and Osaka to focus in particular on large corporations both inside Japan and overseas.

Fuji Xerox seeks to enhance its sales and marketing capabilities for high value-added services. To do this, the company is establishing a system that facilitates swift response to sophisticated customer requirements by establishing a specialized consulting team and strengthening its back-office competencies. Meanwhile, outside of the main cities, regional sales subsidiaries will become the core channel for the provision of services to their respective areas.

Fuji Xerox will shift its sales reps, as well as all customer engineers handling maintenance services, total of 2,700 personnel, to the company's sales subsidiaries nationwide. Through this move, around 80 percent of Fuji Xerox copy machines and multifunction devices in the field in Japan will be handled by its sales subsidiaries. Concentrating management close to the customer on a regional basis will increase maneuverability through the fusion of sales, marketing and maintenance in each area. This will drive improvements in the company's services business, with the overall aim of revolutionizing the existing sales subsidiaries. In line with this endeavor, Fuji Xerox will rename its sales subsidiaries as of April 1, 2006Note. It will also redesign and centralize the sales subsidiaries' business process system to speed up overall management.

Note
Example: Chiba Xerox will be renamed Fuji Xerox Chiba

The environment surrounding our customers' operations is currently changing dramatically. Not only is competition intensifying, but enterprises now also have to meet new social requirements laid down by new laws and regulations, such as the E- Document Law, the Personal Information Protection Law and revisions to the Securities Exchange Law (in Japan). To overcome management issues associated with these changes, Fuji Xerox and its sales subsidiaries have revamped the sales structure, thereby boosting consistency in strategy and ensuring the speedy and accurate provision of high-quality services across the board.

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