Vistaprint 2008 Annual Report Download - page 21

Competition
The markets both for small business marketing products and for custom consumer products are
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 Office and Staples;
‰wholesale printers such as Taylor Corporation and Business Cards Tomorrow;
‰other online printing and graphic design companies. We are aware of scores 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;
‰other website design and hosting companies such as United Internet, Web.com and GoDaddy;
and
‰other suppliers of custom apparel, promotional products and customized gifts, such as Zazzle,
Café Press and Customization Mall.
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 local search, e-mails and electronic files, which may serve as substitutes for our
products and services, 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.
Business Segment and Geographic Information
We operate in one business segment: offering small businesses the ability to market their
business with a broad range of brand identity and promotional products, marketing services and
electronic solutions. For the years ended June 30, 2008, 2007 and 2006, approximately 38%, 32% and
29%, respectively, of our total revenues was derived from our non-United States websites. No single
country other than the United States accounted for 10% or more of revenues in any of the years ended
June 30, 2008, 2007 and 2006. For more segment and geographic information, see our consolidated
financial statements included in this annual report on Form 10-K, as amended, including Note 11
thereto.
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
Form 10-K
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