Vistaprint 2011 Annual Report Download - page 25

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In particular, both Bermuda, where substantially all of the computer hardware necessary to
operate our websites is located in a single facility, and Jamaica, our largest customer service, sales
and design support operation, are subject to a high degree of hurricane risk and extreme weather
conditions.
We have not identified alternatives to all of our facilities, systems, supply chains and
infrastructure, including production, to serve us in the event of an interruption, and if we were to find
alternatives, they may not be able to meet our requirements on commercially acceptable terms or at
all. In addition, we are dependent in part on third parties for the implementation and maintenance of
certain aspects of our communications and production systems, and because many of the causes of
system interruptions or interruptions of the production process may be outside of our control, we may
not be able to remedy such interruptions in a timely manner, or at all.
Any interruptions that cause any of our websites to be unavailable, reduce our order fulfillment
performance or interfere with our manufacturing, technology or customer service operations could
result in lost revenue, increased costs, negative publicity, damage to our reputation and brand, and an
adverse effect on our business and results of operations. Building redundancies into our infrastructure,
systems and supply chain to mitigate these risks may require us to commit substantial financial,
operational and technical resources, in some cases before the volume of our business increases with
no assurance that our revenues will increase.
We face intense 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. We expect competition to increase in the future. The
increased use of the Internet for commerce and other technical advances have allowed traditional
providers of these products and services to improve the quality of their offerings, produce and deliver
those products and services more efficiently and reach a broader purchasing public. Competition may
result in price pressure, reduced profit margins and loss of market share, any of which could
substantially harm our business and results of operations. Current and potential competitors include:
• 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.
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