The microenvironmental factors that have affected Xerox’s performance since the late 1990s
are technological, cultural, and economic forces. Around the late 1990’s a shift in the
industry began to occur, as business transitioned away from the need for exclusively
physical copies of documents, moving many of these files into digital databases. The
internal culture of Xerox did not entirely comprehend the implications of these changes as
they began to occur and subsequently did not adapt to meet their clients new needs fast
enough. The resulting aftermath was that Xerox’s market capitalization fell dramatically,
from an exceedingly valuable business just a few years earlier, to the point where the
business was on the brink of bankruptcy.