Vistaprint 2011 Annual Report Download - page 17

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Competition
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, with many existing and potential competitors. We compete
on the basis of breadth of product offerings, price, convenience, 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, production 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:
• traditional storefront printing and graphic design companies;
• office superstores, drug store chains, food retailers and other major retailers targeting small
business and consumer markets;
• 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;
• website design and hosting companies;
• suppliers of custom apparel, promotional products and customized gifts;
• online photo product companies; and
• Internet firms and retailers.
As we expand our geographic reach, product and service portfolio and customer base, our
competition increases. Our geographic expansion creates competition with competitors with a multi-
national presence and experienced local vendors. Recent product offerings such as websites, email
marketing, apparel and photo products have resulted in new competition as a result of us entering
those markets. We encounter competition from large retailers offering a wide breadth of products and
highly focused companies concentrated on a subset of our customers or product offerings.
Many of our current and potential competitors have advantages over us, including longer
operating histories, greater brand recognition, more focus on a given sub-set of our business, existing
customer and supplier relationships, or significantly greater financial, marketing and other resources.
Some of our competitors currently work together, and additional competitors may do so in the future
through strategic business agreements or acquisitions.
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 develop new or enhanced products, technologies or capabilities that
could render many of the products, services and content we offer obsolete or less competitive.
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