Background Case :
The main line from the colorscopeinc background are the corporate was found in march 1976, the first target customers is local customers (small agencies), and after that colorscope growth significantly that thing can be proved in 1988 sales colorscope over than USD 5 Milion and they served Big Customer, since growth they invest capital expenditure in order to improve services. In 1990 when the overall technology growth rapidly and there are more competitor than before, this situation make the condition under pressure, the first impact from this condition is price war,so the market pressure forced him to reduce his own price. After all finally in 1994 ,colorscope loss signifant& long term client ( where the client omset is 80 % of his business). If colorscope want to survive in this business they must reevaluate the industry from the operation to his pricing policy. Direct Competitor
1. Larger, more technically savvy printing companies with professional salespeople pushing bundled pricing, integrating pre-press services with printing in a single package, such as R.R. Donnelley & Sons Co. and Quad Graphics. 2. Companies that competed in several different submarkets beyond catalogs, e.g. insert, comic syndications, and coupons, such as American Color and Wace/Techtron. 3. Standalone firms that competed with loose affiliations to other printers or advertising agencies, or that literally set up shop next door to their largest accounts to fend off potential competitors.
The Future Strategy
1. Capitalized its biggest assets, its employees who were all well trained and worked effectively as a team to meet deadlines. 2. Increase marketing effort to drum up new business pre-press for catalogs in the fall season before holiday shopping started, for short term strategy. 3. Revenue per page was unlikely to improve due to competitive pressures. Cost containment and improving operational efficiency were, therefore, critical,...
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