Vistaprint 2014 Annual Report Download - page 22

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systems, we may not be able to remedy interruptions to these systems in a timely manner or at all due to factors
outside of our control.
Any interruptions to our systems or 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, and we expect our competition to continue to increase.
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. The competitive landscape for e-commerce companies continues to change as new e-commerce
businesses are introduced and traditional “bricks and mortar” businesses establish an online presence. The
increased use of the Internet for commerce and other technological 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 and brand recognition, any of which could substantially harm our business
and results of operations. Current and potential competitors include:
• traditional offline printers and graphic design providers;
• online printing and graphic design companies, many of which provide printed products and services
similar to ours;
• office superstores, drug store chains, food retailers and other major retailers targeting small business
and consumer markets;
• wholesale printers;
• 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 customized apparel, promotional products and gifts;
• online photo product companies;
• Internet firms and retailers; and
• other digital marketing such as social media, local search directories and other providers.
Many of our current and potential competitors have advantages over us, including longer operating
histories, greater brand recognition or loyalty, more focus on a given subset of our business, or significantly greater
financial, marketing, and other resources. Many of our competitors currently work together, and additional
competitors may do so in the future through strategic business agreements or acquisitions. 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, 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 some 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.