Vistaprint 2012 Annual Report Download - page 25

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21
• office superstores, drug store chains, food retailers and other major retailers targeting small business
and home and family markets;
• companies offering small business or consumer websites and other digital products, including website
design and hosting companies;
• wholesale printers;
• online printing and graphic design companies, many of which provide printed products and services
similar to ours;
• self-service desktop design and publishing using personal computer software with a laser or inkjet
printer and specialty paper;
• email marketing services companies;
• suppliers of custom apparel, promotional products and customized gifts;
• online photo product companies;
• Internet firms and retailers; and
• other digital marketing such as social media, search directories, Google Places and other providers.
Many of our current and potential competitors have advantages over us, including longer operating
histories, greater brand recognition, more focus on a given sub-set of our business, existing customer and supplier
relationships, or significantly greater financial, marketing and other resources. Many of our competitors currently
work together, and additional competitors may do so in the future through strategic business agreements or
acquisitions. Increased competition may result in reduced operating margins, as well as loss of market share and
brand recognition.
Some of our competitors that either already have an online presence or are seeking to establish an online
presence may be able to devote substantially more resources to website and systems development than we can. In
addition, larger, more established and better capitalized entities may acquire, invest or partner with online
competitors as use of the Internet and other online services increases. Competitors may also develop new or
enhanced products, technologies or capabilities that could render many of the products, services and content we
offer obsolete or less competitive, which could harm our business and results of operations.
In addition, we have in the past and may in the future choose to collaborate with certain of our existing and
potential competitors in strategic partnerships that we believe will improve our competitive position and results of
operations, such as through a retail in-store or web-based collaborative offering. It is possible, however, that such
ventures will be unsuccessful and that our competitive position and results of operations will be adversely affected
as a result of such collaboration.
Failure to meet our customers' price expectations would adversely affect our business and results of
operations.
Demand for our products and services is sensitive to price, and changes in our pricing strategies have a
significant impact on our revenues and results of operations. Many factors can significantly impact our pricing
strategies, including the costs of running our business, our competitors' pricing and marketing strategies, and the
effects of inflation. We offer some free or discounted products and services as a means of attracting customers and
encouraging repeat purchases, but these free offers and discounts reduce our profit margins and may not result in
an increase in our revenues. If we fail to meet our customers' price expectations, our business and results of
operations will suffer.
Form 10-K