By Dominic Maher, 24 September 1999 00:20
NEWS Xerox will pay Tektronix $950m for its colour printing and imaging division in a move that will see the printer company take its market share to more than 30 per cent. The deal, expected to be finalised in the next 60 days, will place Xerox in the number-two position - just behind Hewlett-Packard (HP), which holds a 45 per cent market share. Xerox plans to combine its own black-and-white printers with the colour range from Tektronix. In a move that will see Xerox inching towards HP, strategy analyst at Strategy Partners, Clive Longbottom, believes that if Xerox can out-market the number one company, it could close in on its market share. However, with Xerox having a low profile in the SoHo and SME market - and Tektronix only seen as a high-end player - it has a difficult task ahead. Longbottom also warned that Xerox has a long history of difficulties. He explained that it was once the benchmark in the photocopier market now dominated by the likes of Canon and Panasonic. With Xerox's dealer and reseller network reaching nearly 16,000 channel partners, Longbottom believes it needs to be trimmed down in size. Longbottom added: "PC World is not the best place to sell laser printers," and warned that with this niche market, Xerox needs to make sure it doesn't spread channel dollars too thinly.
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