Vistaprint 2007 Annual Report Download - page 21

Competition
The market for graphic design and print services is large, evolving and highly competitive. We
compete on the basis of breadth of product offerings, price, convenience, print quality, design content,
design options and tools, customer and design services, ease of use, and production and delivery
speed. It is our intention to offer high-quality design, print and marketing services at low price points
and in doing so, offer our customers an attractive value proposition. Our current competition includes
one or a combination of the following:
‰self-service desktop design and publishing using personal computer software such as
Broderbund PrintShop, together with a laser or inkjet printer and specialty paper;
‰traditional printing and graphic design companies;
‰office supplies and photocopy retailers such as Office Depot, FedEx Kinko’s, and Staples;
‰wholesale printers such as Taylor Corporation and Business Cards Tomorrow; and
‰other online printing and graphic design companies. We are aware of dozens of online print
shops that provide printing products and services similar to ours. Further, we are aware of
many online businesses that offer some limited custom printing services.
The level of competition is likely to increase as current competitors improve their offerings and as
new participants enter the market or as industry consolidation develops. Many of our current and
potential competitors have longer operating histories, larger customer bases, greater brand recognition
and significantly greater financial, marketing and other resources than we do and may enter into
strategic alliances to provide graphic design and printing services with larger, more established and
well-financed companies. Some of our competitors may be able to enter into these alliances on more
favorable terms than we could obtain. Additionally, these competitors have research and development
capabilities that may allow them to develop new or improved products and services that may compete
with the products and services that we market. New technologies and the expansion of existing
technologies, such as websites, e-mails and electronic files, which may serve as substitutes for printed
products, may increase competitive pressures on us. Increased competition may result in reduced
operating margins as well as loss of market share and brand recognition. We may be unable to
compete successfully against current and future competitors, and competitive pressures facing us
could harm our business and prospects.
Government Regulation
We are not currently subject to direct national, federal, state, provincial or local regulation other
than regulations applicable to businesses generally or directly applicable to online commerce. The
adoption or modification of laws or regulations relating to the Internet or other areas of our business
could limit or otherwise adversely affect the manner in which we currently conduct our business. In
addition, the growth and development of the market for online commerce may lead to more stringent
consumer protection laws, which may impose additional burdens on us. If we are required to comply
with new regulations or legislation or new interpretations of existing regulations or legislation, this
compliance could cause us to incur additional expenses or alter our business model. We do not
currently provide individual personal information regarding our users to third parties without the user’s
permission.
Employees
As of June 30, 2007, we had 992 full-time employees, of which 370 were employed in Lexington,
Massachusetts, United States; 80 in Venlo, the Netherlands; 234 in Windsor, Ontario, Canada; 44 in
Barcelona, Spain, and 264 in Montego Bay, Jamaica In addition, as of June 30, 2007, we also
Form 10-K
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