Pitney Bowes 2014 Annual Report Download - page 15

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5
Shipping management solutions enable clients to reduce transportation and logistics costs, select the best carrier based on need and cost,
improve delivery times and track packages in real-time. We also offer scalable global logistics management systems that can be integrated
into mail centers, as well as desktop and production shipping environments.
Global ecommerce solutions enable full transparency of the fully landed costs by quoting duty, taxes and shipping at checkout, compliance
with all import/export complexities, restrictions, regulations and documentation requirements and provide reliable tracking information.
Our global ecommerce software platform is currently utilized by over 40 direct merchants and a major online marketplace enabling
millions of parcels to be shipped to over 60 countries from the U.S. and more than 15 countries from the U.K.
We also offer targeted direct and digital marketing programs to large advertisers that enable them to connect with movers. Through a
contract with the USPS, we produce a "Movers' Guide" in both printed and digital format and a "Welcome Kit" in printed format with
targeted advertisers' coupons for movers. We also offer digital advertising programs through MyMove.com, a move related website we
own and operate.
Client Service
We have a client care service organization that provides telephone, online and on-site support to diagnose and repair our increasingly
complex mailing equipment, production printers and sophisticated software solutions. Most of our support services are provided under
annual contracts.
Sales and Marketing
We sell to a variety of business, governmental, institutional and other organizations. We have a broad base of clients and we are not
dependent upon any one client or type of client for a significant part of our total revenue.
We market our products and services through a direct and inside sales force, direct mailings, outbound telemarketing, independent dealers
and distributors and web channels. During 2014, we began implementing a phased roll-out of a go-to-market strategy designed to improve
the sales process and reduce costs by providing our clients broader access to products and services though expanded insides sales and
web channels with less reliance on a direct sales force. We are in the final stages of implementing this go-to-market strategy in our North
America businesses and will implement this strategy in our International Mailing and other businesses in 2015.
We have made, and are continuing to make, significant investments in the rebranding of the company in order to build market awareness
and client demand for our products and services. We are also making investments in marketing in support of the company’s brand and
business strategy. The brand investments, including a newly launched external website (www.pb.com), are designed to enhance our
operational and go-to-market changes, including how we sell to and service clients.
Competition
All of our businesses face competition from a number of companies. Our competitors range from large, multinational companies that
compete against many of our businesses to smaller, more narrowly focused regional and local firms. We compete on the basis of technology
and innovation; breadth of product offerings; our ability to design and tailor solutions to specific client needs; performance; client service
and support; price; quality and brand.
We must continue to invest in our current technologies, products and solutions, and in the development of new technologies, products
and solutions in order to maintain and improve our competitive position. We will encounter new competitors as we transition to higher
value markets and offerings and enter new markets.
A summary of the competitive environment for each of our business segments is as follows:
North America Mailing and International Mailing
We face competition from other mail equipment companies and companies that offer products and services as alternative means of message
communications. The principal competitive factors in these markets include pricing, available financing and payment offerings, product
reliability, support services, industry knowledge and expertise and attractiveness of alternative communication methods. Our competitive
advantage includes our breadth of physical and web-based digital offerings, customer service and our extensive knowledge of the shipping
and mailing industry.
Through our wholly owned subsidiary, The Pitney Bowes Bank (the Bank), we offer a revolving credit solution to our SMB clients in
the United States that enables them to pay for the use of certain mailing equipment under rental agreements and purchase products,