Part 1
Polaroid and Xerox have these common strategic management points:
First movers (Pioneers)
Patents
Propitious niche
Product life cycle
Market leaders
Brand Name (Customer Loyalty)
Polaroid Corporation and Xerox Corporation, being first movers, enjoyed propitious niches and were able to establish a monopoly for some period of time by establishing barriers to entry. Polaroid did this with its patent for its instant picture market, and that created an entry barrier for competitors until the expiration of the patent, which opened the door for competition. Xerox did this with its patent on photocopier Xerox Corporation, developed the first copiers in the late 60s had monopoly patent protection, giving it almost 95% market share in the 70s. However, it lacked innovation, and could not introduce new products to the market, and provide good services to customers. Competitors took advantage of this, causing Xerox to lag behind their competitors, because the competitors developed and introduced new and even better copier technology with new technology (without infringing on Xerox's patents), and also provided customers with faster delivery and better service.
Polaroid's inability to defend its niche, keep new entrants out and inability to adapt to technological innovations led to the loss of their propitious niches and significant loss in market share. Xerox, as a dominator of the copier market, experienced years of success, but started losing share price to the copying and printing giants around the world, who were taking chunks of its market share; after massive sales-force reorganization, employee morale had been destroyed. Its brand has so penetrated the American vernacular that it is also ...