Several macroenvironmental forces affected Xerox during the late 1990s. Technologicalchanges – failed to adapt to the new technological changes. Customers actuallywanted more advanced ways of document sharing – to share things electronicallythrough networked computers and they did not want to than rely on hard copiesprinted on paper. Xerox was focusing on refining the copying machines ratherthan working on the digital documentation. Demographicchanges – The new generation born was completely influenced by technologies. The growthof the Internet was continuing after the ban on commercial use of the Internetwas lifted in 1991.
But Xerox failed to accommodate the digital needs of audiencewhich left Xerox a whole generation behind. It made Xerox’s stock price to dropfrom 70$ to 5$ in just two years. Environmental forces – The great recession was also amisfortune. Overall contraction in the global economy during the greatrecession troubled recuperation.