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Submitted by tarfool on March 20, 2007
Category: Business
Words: 2180 | Pages: 9
Views: 389
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Future Market Conditions Paper
Introduction
While many establishments have left the competitive landscape, average revenue per establishment actually exceeded inflation by about 2 points over the past six years. Valued added sales in the printing industry actually outperformed inflation. Almost all industry growth came from printers who described themselves as digital print specialists. The study concluded that the commercial printing industry is a highly competitive manufacturing market that effectively leverages technology to reduce prices to customers and increase value to business owners. Survey participants expected revenue from offset to decline 7.7% over the next two years and that revenue for digital printing would increase 5.5% and value added services would grow 2.3%. While the industry retains a manufacturing focus it is moving to more of a service orientation. 77.8% of the respondents claim that "reducing production cost and improving efficiency is a current business strategy" but many lack the plans to effectively achieve this goal for the future.
Future Market Structure
The future market structure for the printing industry will remain monopolistic, as many different printing companies add to the competition. Looking ahead, with the advancements of technology and global competition, the printing industry will remain strong. Determining the future market structure is important because it will determine the strategy needed and enable the printers to see how to position themselves in the ever-changing market.
Strategies for growth include increasing customers since it is a service business. This will be done by offering new products and services and keeping the prices competitive. The other strategy would be acquisitions as consolidations are happening with many companies in the U.S. This approach could increase the size and offerings of the company, which in turn could increase profits.
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