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...