The structure of the joint venture between Xerox Corporation and Fuji Xerox became an issue in the beginning of the 90´s. The growth of the competence from Canon, Richoh and Minolta in the low-end copiers and Kodak and IBM in the high-end has led them to lose market share. The growth of the Asian and South Pacific Market as well as the necessity of Fuji Xerox to be more independent becomes a challenge for the managers of the Xerox Group. We need to find the best practices in product designs, manufacturing, and management ideas to continue this synergy and fight against the growing competence.

To understand our situation in this case we most analyze how Fuji Xerox became important for Xerox Corporation. In the beginning of the 60´s Fuji Xerox started as a reseller for xerographic products in Japan and Fuji Photo Film was the manufacturer it was a 50/50 joint venture between FX and RX this last one with 50% of profits. Xerox Corporation itself was to have no direct relationship with FX. This relation changes when FX started to develop their own manufacturing capabilities, XC leave them a small budget of R&D and FX Start to create their own models. However competition takes a place in the Japanese market and to counteract it FX launched the “Total Quality Control Program” (TQC) by looking in the customer needs (reduction of costs, elimination of waste and new technologies) they introduce to the market the FX3500 at half price of any comparable, with half number of parts. In the other side of the world (United States and Europe) XC was loosing market share and revenues in all their segments by the entrance of new competitors in the market. This crisis opens the opportunity for XC to start selling products abroad first to Rank Xerox and then to XC, creating competitive advantage for the corporation due to the pricing that XC could provide. In the beginning of