Shutterfly 2010 Annual Report Download - page 9

Download and view the complete annual report

Please find page 9 of the 2010 Shutterfly annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 99

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99

We believe the primary competitive factors in attracting and retaining customers are:
We believe that we compete favorably with respect to many of these factors, particularly customer trust and loyalty, quality and breadth of
products and services, and customer service. Many of our competitors promote their products on the basis of low prices or the convenience of
same-
day availability for digital photos printed in drugstores or other retail outlets. Generally, we distinguish ourselves from such competitors
principally on the basis of product quality and innovation, rather than price or same-day delivery.
●
drug stores such as Walgreens, CVS and others that offer in
-
store pick
-
up from Internet orders;
●
regional photography companies such as Ritz Camera that have established brands and customer bases in existing photography
markets;
● Internet portals and search engines such as Yahoo!, AOL, and Google that offer broad-
reaching digital photography and related
products and services to their large user bases;
● home printing service providers such as Hewlett-
Packard, Epson, Canon, Kodak and Fuji that are seeking to expand their printer and
ink businesses by gaining market share in the emerging digital photography marketplace;
●
photo
-
related software companies such as Apple, Microsoft and Corel;
●
social media companies that host images such as MySpace, Facebook and Hi5; and
●
specialized companies in the photo book and stationery business such as Hallmark, American Greetings, Tiny Prints, Minted, Picaboo
and Blurb.
●
brand recognition and trust;
●
quality of products and services;
●
breadth of products and services;
●
user affinity and loyalty;
●
customer service;
●
ease of use;
●
convenience; and
●
price.
7