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Submitted by jag1977 on November 5, 2005
Category: Business
Words: 970 | Pages: 4
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IKON's Office Solutions Environmental Analysis
IKON integrates imaging systems and services to help businesses manage document workflow and increase efficiency. In the next 10 years, success factors that are going to be critical to the business include building solid growth initiatives to expand market reach, developing a highly responsive and cost efficient infrastructure, and achieving greater financial flexibility to ensure the return value to the shareholders and respond more aggressively to new market opportunities. The changes that IKON will go through within the next 10 years to come will ensure that the product and services provided are flexible, services-centric and customer-focused. To this end, the company continues to emphasize key growth areas such as professional services, outsourcing and color and production equipment.
Remote Environment
IKON's access to equipment, parts and supplies depends upon its relationships with, and its ability to purchase equipment on competitive terms from its principal vendors, Canon, Ricoh, Hewlett-Packard and Océ. IKON has not and does not currently enter into long-term supply contracts with these vendors, and they do not have any current plans to do so in the future. These vendors are not required to use IKON to distribute their equipment and are free to change the prices and other terms at which they sell to the company. In addition, IKON competes with the direct selling efforts of these vendors. Significant deterioration in relationships with, or in the financial condition of these significant vendors could have an adverse impact on IKON's ability to sell and lease equipment as well as its ability to provide effective service and technical support. If one of these vendors terminated or significantly curtailed its relationship with IKON, or if one of these vendors ceased operations, IKON would be forced to expand its relationship with other vendors, seek out new relationships with other...
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