Explore ways in which digital imaging can broaden a shop's service offerings and help generate new revenue.
By Tim Greene
Also, are there alternative methods for delivering the same finished product that you deliver? Are there other ways to deliver the message or materials you currently produce? Consider those companies that produce outdoor advertising materials. Are they threatened by the rapidly growing number of outdoor digital displays? Maybe not this year, or even in the next couple years, but it is definitely a market development they have to monitor.
What about your customers? Are you seeing a trend to lower run lengths, and how are you reacting? Do customers expect to pay more, less, or the same for your services as they did last year? I would argue that in many cases, customers expect to pay less for the same or better service year after year.
Finally, what is the nature of competition within the screen-printing industry? Is it a cut-throat business, or are there cooperative efforts and a sense of common struggle that keeps profit margins at an acceptable level? What is the influence of developing nations on the US screen market? Lately, we have seen a lot more advertising from companies in developing countries suggesting their ability to fulfill large screen-print orders at a significant discount. I would not suggest that these are having a major impact on the market in terms of volume production, but it certainly adds to the amount of information buyers have when pricing projects.
The beauty of Porter's model is two-fold in that it is portable for any industry and that it is dynamic, meaning the forces to consider are highly changeable. The downside of Porter's model is that it does not consider the internal influences and capabilities of a company, or its ability to take advantage of certain market changes. This brings us to why I, an analyst of the wide-format digital printing market, have been asked to write for Screen Printing magazine. Since I believe that screen printing is a relatively mature market, I thought I could use this space to consider four ways to grow in a mature market using wide-format digital printing.
Grow the market
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