Organization Snapshot
VistaPrint helps small businesses market their businesses by making it easy for them to get great-looking business cards, office stationery, and promotional items in small quantities without having to pay a premium. Customers simply go online and design, review, and order colorful, high-quality printed products using the designs, templates and images provided or by uploading their own graphic designs.
Blue Ocean Strategic Move
VistaPrint opened up a large Blue Ocean by bringing long-run, low cost economics to short-run printing jobs for SOHO (small office/home office) small businesses. The market of traditional commercial printing non-customers it unlocked is huge because according to the company, there are about 50 million SOHO firms in Europe and North America alone that range in size from 1 to 10 employees.
VistaPrint's Value Innovation involves cost structure advantages from volume (it regularly gets over 33,000 orders per day), and proprietary software and systems that are used throughout the company to automate and enable key operations. For example, it has its own internet graphic design software, order receiving and processing technologies, and computer integrated printing facilities.
At the same time, superior buyer value is delivered by offering premium quality products and services at affordable prices with a satisfaction guarantee. Turnaround times are fast as well, with jobs going from design to delivery in as little as three days.
Success
In six short years, VistaPrint has grown from a small online marketing services business with $5 million in revenues (in FY2001) to become a leading international player with $256 million in revenues (FY2007).
The company has served over 13 million customers and is attracting 300,000 new customers a month while continuing to retain existing customers. Net Profit in FY2007 grew to $27 million, and the company is working hard to continue its profitable growth and grab as much share of the blue ocean market space it created as quickly as possible.
