Adobe 2001 Annual Report Download - page 11

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A number of companies currently offer one or more products that compete directly or indirectly with
more than one of Adobe’s Graphics products. These companies include Corel, Macromedia, and Roxio.
Cross-media Publishing
In the Cross-media Publishing market, we offer several products including Adobe GoLive, Adobe
InDesign, Adobe PageMaker, Adobe FrameMaker, and Adobe Type Library. We believe these individual
products compete favorably on the basis of features and functionality, ease of use, product reliability, and
price and performance characteristics. In addition, the products increasingly work well together, providing
broader functionality and shortened product learning time for the individual who uses multiple
applications to complete a project.
The Web page layout market is a constantly evolving and highly volatile market that has been
impacted by both the recent global economic downturn and the reduction in Web product spending. We
believe Adobe GoLive trails in market share and faces significant direct and indirect competition in the
Web page layout market from companies such as Macromedia and Microsoft. Although we believe we
compete favorably with our product due to the features of Adobe GoLive and our ability to leverage core
technologies from our other established products, we believe it will be difficult to take market share away
from competitive products in the market due to the entrenched nature of Macromedia’s Dreamweaver
product within Web design and consultancy businesses, the broad distribution and use of Microsoft’s
FrontPage as a mid-range Web page layout solution, and the global economic impact on Web-based
business in 2001.
Our Adobe InDesign product faces tough competition in the professional page layout market. The
main competitor product, Quark Xpress, has a leading market share in the Roman language markets for
professional page layout in the United States and Europe. Quark Xpress also benefits from an established
industry infrastructure that has been built around the use of the Xpress product in print shops and service
bureaus, and through the development of third party plug-in products. Barriers to the adoption of Adobe
InDesign by Quark Xpress customers include this infrastructure, as well as the cost of conversion, training,
and software/hardware procurement required in a switch to InDesign. We believe we can gain market
share with InDesign software against Xpress due to our strong brand name, our support of Apple’s new
Mac OS X operating system, new product capabilities, and the recently improved infrastructure support by
the industry for our solution. Adobe recently made available version 2.0 of InDesign, which will compete
against the new version of Quark Xpress, version 5.0.
In the technical authoring and publishing market, Adobe FrameMaker products face competition
from large-scale electronic publishing systems developed by several companies as listed below. Participants
in this market compete based on the quality and features of their products, the level of customization and
integration with other publishing system components, the number of hardware platforms supported,
service, and price. We believe we can successfully compete in this market based upon the quality and
features of the Adobe FrameMaker product, our extensive application programming interface, the large
number of platforms supported, and other factors.
In the business document publishing and authoring market, Adobe PageMaker products face
competition from other desktop publishing software products, including Microsoft Publisher. Participants
in this market compete based on the quality and features of their products, ease-of-use, printer service
support, and price. We believe we have strong market share and can successfully compete in this market
based upon the quality and features of the Adobe PageMaker product, its widespread adoption among
printer service bureaus, and other factors.
A number of companies currently offer one or more products that compete directly or indirectly with
more than one of Adobe’s Cross-media publishing products. These companies include Broadvision,
Macromedia, Microsoft, Quark, and Arbortext.
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