Xerox 2003 Annual Report Download - page 8

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At the same time, we made another strategic bet. We substan-
tially deepened and widened our distribution channels with an
eye to reaching more customers in the way they want while
reducing unnecessary costs to Xerox. Although our direct sales
force is still one of our crown jewels, it is augmented by an
equally effective network of agents, concessionaires, value-
added resellers, retailers and a worldclass TeleWeb operation.
Xerox now claims the broadest and deepest
set of offerings in our industry and the
broadest and deepest network of distribution
channels. It’s a winning combination.
If I sound bullish, it’s because I am. We are in the right
markets with the technology to expand those markets over
time. We have the right offerings that help our customers
find better ways to do great work. And we have the right
business model which delivers both operational excellence
and consistently improving performance.
When I wrote to you last year, I said that one of our key
priorities was to continue to establish credibility with you and
to earn your trust. That is very important to all of us at Xerox.
We now have a three-year track record of delivering on
some very specific commitments. We have an attractive and
predictable business model with a large recurring revenue
stream. And we have strengthened and streamlined business
processes that enable us to better manage our business with
improved efficiencies.
Just as importantly, we have a premium brand in the attractive
and expanding $100 billion document market, a vast distribution
network led by a global sales and service force that the rest
of our industry only dreams about, worldclass technology and
innovation fueled by leading labs and scientists around the
world, a knowledge and savviness about our customers’ docu-
ment needs that builds on a rich heritage and our passionate
engagement with our customers, a focused strategy of investing
for growth in markets where we can add value – and the
enormous talent of 60,000 people in more than a hundred
countries who are committed to success.
6
Return to Profitability
Net Income (Loss)
($ millions)
91
360
(273)
(94)
2000 2001 2002 2003