Pitney Bowes 2015 Annual Report Download - page 21

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5
Global Ecommerce
Global Ecommerce includes our cross-border ecommerce solutions and shipping management solutions. Our cross-border ecommerce
technology and services platforms enable retailers to transact with consumers globally. With our proprietary technology, we are able to
manage all aspects of the international shopping and shipping experience, including multi-currency pricing, payment processing, fraud
management, calculation of fully landed costs by quoting duty, taxes and shipping at checkout, compliance with product restrictions,
export complexities and documentation requirements for customs clearance and brokerage and global logistics services. Our cross-border
ecommerce software platforms are currently utilized by over 250 direct merchants as well as a major online marketplace enabling millions
of parcels to be shipped to over 200 countries and territories worldwide. In 2015, we expanded our cross-border ecommerce capabilities
through the acquisition of Borderfree, Inc. See Note 3 to the Consolidated Financial Statements.
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 for the office and retail markets, as well as desktop and production shipping environments.
See Item 7, "Management Discussion and Analysis of Financial Condition and Results of Operations" and Note 2 to the Consolidated
Financial Statements for additional segment and geographic information.
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 market our products and services through a direct and inside sales force, direct mailings, telemarketing, independent dealers and
distributors and web channels. We sell to a variety of business, governmental, institutional and other organizations, and in our Ecommerce
business only, we also sell to consumers as well as a variety of businesses. We have a broad base of clients and are not dependent upon
any one client or type of client for a significant part of our total revenue.
In 2014, we began a phased roll-out in our SMB Solutions operations of a strategy designed to provide clients broader access to products
and services, improve the sales process and reduce costs by shifting more of our client coverage from field sales to inside sales. During
2015, we successfully rolled out this strategy worldwide and in 2016, we will begin shifting more client coverage activity to web channels.
We have made, and are continuing to make, significant investments in the rebranding of the company. These investments include marketing
and advertising spending designed to build market awareness and client demand for our products and services, and 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 significant competition from other mail equipment and software companies, companies that offer products and services as
alternative means of message communications and non-traditional competitors that offer shipping and mailing products and services
through online solutions. The principal competitive factors include the composition of offerings between software and hardware solutions,
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.