Lexmark Case Analysis

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Lexmark is a leading developer, manufacturer and supplier of printing and imaging solutions for offices and homes in over 150 countries. Lexmark, despite declining revenues, has a strong competitive position in the printers market. The company is the third largest player in the inkjet printer segment behind Hewlett-Packard and Canon. Lexmark is one of the significant players in the laser printers market. Strong competitive position in the printers market provides the company with a platform for launching growth initiatives, which would help in wresting market share from rivals. Intense competition, however, could adversely affect the revenues of the company.

Strengths
Strong competitive position
Lexmark, despite declining revenues, has a strong competitive position in the global printers market. The company is the third largest player in the global inkjet printer market behind Hewlett-Packard and Canon. Lexmark’s share of the inkjet printer market stands at 16% is the same as that of Epson (16%), but is lower than that of Hewlett-Packard (45%) and Canon (18%). Lexmark’s inkjet printers portfolio includes low-end single-function printers, high-end photo and all-in-one printers. The company’s inkjet printer portfolio is not as comprehensive as that of rivals such as Hewlett-Packard. The company makes up for lack of breadth in the inkjet printers market by providing attractive features at a low price. Lexmark is also one of the significant players in the laser printers market. Lexmark is the fifth largest player in the global laser printer market with a market share of 7%. The company trails Hewlett- Packard (40%), Samsung (10%), Canon (9%) and Brother (8%) in the laser printers market. Strong competitive position in the printers market provides the company with a platform for launching growth initiatives, which would help in wresting market share from rivals.

Growing services business
Lexmark has a growing services business. The company provides an...
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