Juno 2012 Annual Report Download - page 17

Table of Contents
services, such as Teleflora and BloomNet Wire Service, a subsidiary of 1-800-FLOWERS.COM, Inc. International key competitors include mass
market retailers, such as Asda, Marks & Spencer, NEXT, and Waitrose/John Lewis, as well as online, catalog and specialty gift retailers such as
eFlorist and Serenata Flowers. Although we believe that we compete favorably with respect to many competitive factors, some of our competitors have
an advantage over us with respect to certain factors.
We face intense competition in the consumer market. We expect the sales volumes at supermarkets and mass merchants to continue to increase, and
other online floral mass marketers will continue to increase their competition with us. In particular, the nature of the Internet as a marketplace facilitates
competitive entry and comparative shopping, and we have experienced increased competition. Some of our competitors may have significant competitive
advantages over us, may engage in more significant discounting, may devote significantly greater resources to marketing campaigns or other aspects of
their business or may respond more quickly and effectively than we can to new or changing opportunities or customer requirements.
We face intense competition in the market for floral network services. In addition, the number of retail florists has declined over the past years. As
the number of retail florists decreases, competition for the business of the remaining retail florists is expected to intensify.
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As consumers continue to spend more time and money online, the competition for their time and engagement has continued to intensify.
Consumers have a great number of options for online content and entertainment, including, by way of example, games, websites offering news and
current events, movies, television shows, videos, information about any and virtually every topic, and the opportunity to communicate, socialize and
interact with acquaintances and others. Certain aspects of the value proposition of our online nostalgia services compete with major social networking
websites such as Facebook and Google+, as well as Internet search engines such as Google. Many of our competitors offer their content and services
free of charge. We believe the primary competitive factors are price, features, functionality, size and engagement of the user base, and quantity, quality
and scope of the content. We believe we compete favorably with respect to certain of these areas, although many competitors have a significant
advantage over us in certain other areas.
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The market for online loyalty marketing services is highly competitive, and we expect competition to significantly increase in the future as online
loyalty marketing programs continue to grow in popularity. Our MyPoints online loyalty marketing business faces competition for members from other
online loyalty marketing programs, such as Ebates, as well as offline loyalty marketing programs that have a significant online presence, such as those
operated by credit card, airline and hotel companies. In addition, we also face competition for members from online providers of discounted offerings
and coupons, such as Groupon and LivingSocial. We believe the primary competitive factors in the online loyalty marketing industry are the number,
type and popularity of the participating merchants, the attractiveness of the rewards offered, the number of points awarded for various actions, the ease
and speed of earning rewards, and the ability to offer members a robust, user-friendly shopping experience. We believe that we compete favorably in
certain of these areas, although some of our competitors have an advantage over us in some or all of these areas.
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We compete with numerous providers of broadband services, as well as other dial-up Internet access providers. Our principal competitors for
broadband services include, among others, local exchange carriers such as AT&T and Verizon, wireless and satellite service providers, and cable
service providers. Our principal dial-up Internet access competitors include established online service and
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