Vistaprint 2015 Annual Report Download - page 9

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1
PART I
Item 1. Business
Overview
We are a technology and manufacturing-driven company that aggregates, via the Internet, large volumes of
small, individually customized orders for a broad spectrum of print, signage, apparel and similar products. We
produce those orders in highly automated, capital and technology intensive production facilities in a manner that we
believe makes our production techniques significantly more competitive than those of traditional suppliers. We bring
our products to market through a portfolio of focused brands serving the needs of small and medium businesses
and consumers. These brands include Vistaprint, our global brand for micro business marketing products and
services, as well as brands that we have acquired that serve the needs of various market segments, including
resellers, small and medium businesses with differentiated service needs, and consumers purchasing products for
themselves and their families.
Our Priorities
Extending our history of success into our third decade, and beyond, is important to us. To that end we work
to optimize our business according to two priorities:
1. Strategic Objective: To be the world leader in mass customization.
2. Financial Objective: To maximize intrinsic value per share, defined as (a) the unlevered free cash flow per
share that, in our best judgment, will occur between now and the long-term future, appropriately discounted
to reflect our cost of capital, minus (b) net debt per share.
World Leader in Mass Customization
Cimpress’ strategic objective is to defend and extend our position as the world leader in mass
customization. Mass customization is a business model that allows companies to deliver major improvements to
customer value across a wide variety of product categories. Companies that master mass customization are able to
produce, with the reliability, quality and affordability of mass production, small individual orders where each one
embodies the personal relevance inherent to customized products.
The chart illustrates this concept. The horizontal
axis represents the volume of production of a given
product; the vertical axis represents the cost of
producing one unit of that product. Traditionally, the
only way to manufacture at a low unit cost was to
produce a large volume of that product: mass-produced
products fall in the lower right hand corner of the chart.
Custom-made products (i.e., those produced in small
volumes for a very specific purpose) historically
incurred very high unit costs: they fall in the upper left
hand side of the chart.
Mass customization breaks this trade off,
enabling low volume, low cost production of individually
unique products. Very importantly, mass customization
creates value in many ways, not just lower cost. Other
advantages can include faster production, more
personal relevance, elimination of obsolete stock,
better design, flexible shipping options, more product
choice, and higher quality.
Mass customization delivers a breakthrough in customer value particularly in markets in which the worth of
a physical product is inherently tied to a specific, unique use or application. For instance, there is no value to a
small business brochure that is the same brochure as is used by many other companies: the business owner needs
to describe what is unique about their business. Likewise, a photo mug is only relevant if it shows pictures of
Form 10-K