Cimpress Aims To Mitigate Risks By Decentralizing Operations
Zacks Investment Research | May 14, 2018 11:09PM ET
On May 15, we updated the research report on business services provider, Cimpress N.V. (NASDAQ:CMPR) .
Cimpress’ business is scalable and its web presence and online tools for customer use are well established. While additional demand often results in various capital investments such as additional printing presses, these fixed costs are spread over a wider revenue base. The company’s solid operational position is reflected in its history of strong fundamentals, which we expect to continue, going forward.
Management has also decided to implement a radical change in the organizational structure by decentralizing operations to improve accountability for customer satisfaction and capital returns, simplify decision-making and improve the speed of execution. With operations in about 50 locations spanning 30 countries across six continents, decentralized decision making will enable the company to be nimble and entrepreneurial. The evolved corporate structure will likely lead to more accountability as the company expands into new geographical regions and markets to strengthen its position as a leading provider of mass customization business products.
With the use of proprietary web-based design software and advanced computer integrated printing facilities, Cimpress has a competitive advantage over traditional graphic design and printing methods. The company has shifted its value proposition away from deep discounts and free-offer direct marketing efforts to tap the large market opportunity beyond the traditional base of highly price-sensitive customers. At the same time, Cimpress is making steady progress with investments in new markets and its business strategy is focused on higher quality products and delivery, increased customer service and more transparent pricing to promote long-term customer relationships.
In addition, Cimpress has been acquiring firms with complementary product offerings and expects to ramp up its revenues with operating synergies through economies of scale and technological collaboration to serve customers across the globe. Cimpress has outperformed the Zacks Investment Research
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