Shutterfly, Inc. 2018 Annual Report
Total Page:16
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PART 1 • Social media companies that host and enable • Online and offline companies specializing in church photography and retail studio mobile access to and posting of images such photo-based merchandise and personalized photography businesses; as Facebook, Instagram, Twitter, Pinterest, home décor such as Zazzle, CafePress, • Primarily local and regional players that Snapchat and Google+; Art.Com, Canvas On Demand, Personalization compete with the Lifetouch School Mall, Personal Creations, Things Remembered, • Photo hosting websites that allow users to photography business, including Inter-State Mark & Graham, CustomInk, Teespring and upload and share images at no cost such as Studio & Publishing, Barksdale School Portraits, Etsy. Apple iCloud, Google Photos, and Flickr; Strawbridge Studios and Dorian Studio in the • Providers of digital alternatives to our • “Big Box” retailers such as Wal-Mart, Costco, United States and Artona Group, Edge products, such as Paperless Post, Evite, Sam’s Club, Target, and others that offer low Imaging, Mountain West Studios and Pegasus Animoto, and PicCollage. cost digital photography products and School Images in Canada; and services. In addition to providing low-cost • Home printing service providers such as • Jostens, Herff Jones, Balfour and Walsworth competitive product offerings on their Hewlett-Packard and Epson that are seeking to Publishing in yearbooks (all of whom have respective websites, these competitors provide expand their printer and ink businesses by made significant investments in technology) in in-store fulfillment and self-service kiosks for gaining market share in the digital addition to several online yearbook providers printing, and may, among other strategies, photography marketplace; such as Tree Ring and Picaboo. offer their customers heavily discounted • Enterprise digital and print communications Many of our competitors, particularly in the in-store products and services that compete companies such as RR Donnelley and Sons Shutterfly Consumer and SBS segments, have directly with our offerings; Company, O’Neil Data Systems, Inc., Quad/ significantly longer operating histories; larger and • Drug stores such as Walgreens, CVS/ Graphics, Inc. and Viatech Publishing Solutions, broader customer bases, greater brand and name pharmacy, and others that offer low-cost Inc.; recognition; greater financial, research and photography products and services as well as • Regional photography companies such as Ritz development and distribution resources, and in-store pick-up from their photo website Camera that have established brands and operate in more geographic areas than we do. Internet orders; customer bases in existing photography Well-funded competitors may be better able to • Traditional offline stationery companies such as markets; withstand economic downturns and periods of PaperSource, Crane & Co., and Papyrus; slow economic growth and the associated periods Camera and photographic supply companies • of reduced customer spending and increased Cloud-based storage services and file-syncing that rent equipment nationwide both online • pricing pressures. The numerous choices for services such as Dropbox, Box, Everalbum, and in brick-and-mortar stores such as digital photography services can cause confusion Amazon Photos and iCloud; LensRentals.com, Cameralends, AbelCine, and for consumers and may cause them to select a Adorama; • Specialized companies in the photo book and competitor with greater name recognition. Some stationery business such as Hallmark, Cardstore • Picture People and Portrait Innovations in the competitors can devote substantially more by American Greetings, Minted, Invitations by Lifetouch portrait studio business; resources to website and systems development or Dawn, Picaboo, Blurb, Mixbook, Postable, to investments or partnerships with traditional • Independent professional and amateur Artifact Uprising and Chatbooks; and online competitors. Well-funded competitors, photographers who enjoy low barriers to entry particularly new entrants, may choose to prioritize • Photo-related software companies such as and can offer flexible business terms and growing their market share and brand awareness Apple, Microsoft, and Adobe; product options in the school photography, 16.