Vistaprint 2010 Annual Report Download - page 26

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UPrinting for small business marketing products and services; TinyPrints, Invitation
Consultants and Fine Stationery for invitations and announcements;
• self-service desktop design and publishing using personal computer software with a laser
or inkjet printer and specialty paper;
• other email marketing services companies such as Constant Contact and iContact;
• other website design and hosting companies such as United Internet, Web.com and
Network Solutions;
• other suppliers of custom apparel, promotional products and customized gifts, such as
Zazzle, Café Press and Customization Mall;
• online photo product companies, such as Kodak Gallery, Snapfish by HP, Shutterfly and
Photobox; and
• other internet firms, such as Google (Picasa), Yahoo (Flickr), Amazon, Facebook,
MySpace, the Knot and many smaller firms.
Many of our current and potential competitors have advantages over us, including longer
operating histories, greater brand recognition, existing customer and supplier relationships, and
significantly greater financial, marketing and other resources. Many of our competitors work together.
For example, Taylor Corporation sells printed products through office superstores such as Staples and
Office Depot.
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 seek to develop new 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.
Our 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. Changes in our pricing strategies
have had, and are likely to continue to have, a significant impact on our revenues and results of
operations. We offer certain free products and services as a means of attracting customers, and we
offer substantial pricing discounts as a means of encouraging repeat purchases. These free offers and
discounts may not result in an increase in our revenues or the optimization of our profits. In addition,
many factors, including our production and personnel costs and our competitors’ pricing and
marketing strategies, can significantly impact our pricing strategies. If we fail to meet our customers’
price expectations in any given period, our business and results of operations will suffer.
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