The Threat of FedEx Kinkos / Adobe

Numerous people in the industry are up in arms about the recent capability added to Adobe Acrobat to send jobs directly to FedEx Kinkos.  I can understand how that could be disappointing, but it shouldn't be a surprise.  Every day the world gets more connected.  Two large companies decided to make it easier for their customers to perform a task they were already doing.  Does this give FedEx Kinko's an unfair advantage over traditional reprographers?  Maybe for some cases.  It may be easier for me to send my PowerPoint presentation, but does it make it easier send a large bid distribution for a hospital construction project?  I don't think so.

You can break the work that both FedEx Kinko's does and reprographers do into individual market segments.  For example construction bid set distribution, sign making, casual black and white copying, casual engineering copying, construction document management, and many more.  These categories could even be broken into more granular sub-segments (i.e. sign making for construction versus retail sign making).  FedEx Kinko's is strong in some of these segments and weak in others.  Reprographers, in general, are also strong in some segments and weak in others.  I believe as you build your business plan and look into your planning horizon you decide which of these segments you can compete in and which you could loose to a competitor with different strengths.  As Sun Tzu says in "The Art of War", his book on ancient Chinese military strategies and tactics, "fight the battles you can win."

Jack Welch's strategy at GE was to be #1 or #2 in a market or exit the market.  Many within GE made arguments that business where they were not market leaders were profitable business and shouldn't be exited.  Jack's counter argument was the resources spent on these non-leading businesses could be diverted to those markets where they can have a leadership position.  They could use those precious resources to improve their service or offer new products.  New products and services by a market leader carry a premium over a non-leader thus generating more profits.

There are several market segments that PLP sells into that we believe will eventually be taken by competition or more likely become made obsolete by changes in the market.  Per our business plan we put very little resources into those segments and plan on no profit from them.  Every year we get more profit than we expected, but it does decline.  We are pleasantly surprise by the profits, but if we got nothing we would be on plan.  All of our precious resources are put into those market segments we believe we can be #1 or #2 (with a goal to be #1).  Instead of spending time pining over the business we lost we are pleasantly surprised by what we maintained, but seeing the favorable results of putting our resources put behind segments we can compete more favorably in.

Comments

[michael a. duff]

The Threat of FedEx Kinkos / Adobe

I see the threat of FedEx, Kinkos, and Adobe union as just one more attempt to try to own the

printing, shipping, black and white and color, large and small, format graphic industry.

This is something we have seen many times before in the Reprographic industry.

After all the attempts that I have seen in over 40 years in the Reprographic industry

I do know one thing -- I know that no one ever gets to own the industry.

There is much to be gained from how they will advertise the market basket of services.

I believe they will create market awareness to the masses, around the world.

I believe this will allow the Reprographic industry to show quality and service levels that

FKA can not under stand, afford or reach.

I believe FKA is like a MacDonald’s happy meal, three or four choices only (no you can’t have a car

this time you must take Batman and like it!)

.

Quotes By: Sun Tzu on the Art of War

“Do not repeat the tactics which have gained

you one victory, but let your methods be regulated

by the infinite variety of circumstances”.

“So in war, the way is to avoid what is strong,

and to strike at what is weak”.

“Therefore, just as water retains no constant shape,

so in warfare there are no constant conditions”.

Also (the book of five rings) is a good read BY: Miyamoto Musashi

http://www.cyberpathway.com/musashi/

Duff

[George]

The unfortunate decision made by Bruce Chizen, CEO of Adobe has infuriated the printing world. For those of you who don't know all the details, we (concerned printers) have tried to gather all the news stories in one place until there is a resolution... one way or the other.

Chizen said, "he screwed up", but he has not yet reversed course and many believe he may not. All he seems to have done lately is sell a huge amount of his Adobe stock!
(we document this on the site).

Meanwhile, please monitor the Adobe developments at:
http://groups.google.com/group/adobescrewspartners/topics

If you have news to report, please feel free to post at this site. No registration is required.

George Croft
The Print Shoppe, Inc.
Dallas, Texas
(Since 1972)