Vistaprint 2013 Annual Report Download - page 21

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We have not identified alternatives to all of our facilities, systems, supply chains and infrastructure,
including production, to serve us in the event of an interruption, and if we were to find alternatives, they may not be
able to meet our requirements on commercially acceptable terms or at all. In addition, we are dependent in part on
third parties for the implementation and maintenance of certain aspects of our communications and production
systems, and because many of the causes of system interruptions or interruptions of the production process may
be outside of our control, we may not be able to remedy such interruptions in a timely manner, or at all.
Any interruptions that cause any of our websites to be unavailable, reduce our order fulfillment
performance, or interfere with our manufacturing, technology, or customer service operations could result in lost
revenue, increased costs, negative publicity, damage to our reputation and brand, and an adverse effect on our
business and results of operations. Building redundancies into our infrastructure, systems and supply chain to
mitigate these risks may require us to commit substantial financial, operational, and technical resources, in some
cases before the volume of our business increases with no assurance that our revenues will increase.
We face intense competition, and we expect our competition to continue to increase.
The markets for small business marketing products and services and home and family custom products,
including the printing and graphic design market, are intensely competitive, highly fragmented and geographically
dispersed. The increased use of the Internet for commerce and other technological advances have allowed
traditional providers of these products and services to improve the quality of their offerings, produce and deliver
those products and services more efficiently, and reach a broader purchasing public. Competition may result in
price pressure, reduced profit margins and loss of market share and brand recognition, any of which could
substantially harm our business and results of operations. Current and potential competitors include:
• traditional storefront printing and graphic design companies;
• office superstores and other 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, local search directories, 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 subset 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.
The competitive landscape for e-commerce companies continues to change as new e-commerce
businesses are introduced and traditional “bricks and mortar” businesses establish an online presence. Competitors
may also develop new or enhanced products, technologies or capabilities that could render many of the products,