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A global technology company with a
proud history and a bright future
Lexmark International, Inc. (NYSE: LXK)
makes it easier for businesses and consumers
to move information between the digital and
paper worlds. In doing so, we are guided by
a simple vision: Customers For Life. To earn
our customers’ loyalty, we listen to them,
anticipate their needs and act to create
value in their eyes.
Since our inception in 1991 as a spin-off of
IBM, Lexmark has become a leading developer,
manufacturer and supplier of printing and
imaging solutions for offices and homes.
Lexmark's products include laser printers,
inkjet printers, multifunction devices and
associated supplies, services and solutions.
Lexmark reported $5.0 billion in revenue in
2007. Revenue derived from international
sales and exports from the U.S. make up
about half of the company's consolidated
revenue, with Europe accounting for
approximately two-thirds of international
sales. Lexmark's products are sold in more
than 150 countries in North and South
America, Europe, the Middle East, Africa,
Asia, the Pacific Rim and the Caribbean.
The distributed output market is growing and
presents attractive growth opportunities.
Lexmark has unique strengths in this market,
and we continue to strengthen our
competitive position through strategic
investments to pursue these growth
opportunities.
Market trends driving long-term growth in
distributed printing include:
» Continuing improvement in
price/performance points;
» Continued convergence in technology
between printers, scanners, copiers and fax
machines into single, integrated all-in-one
devices;
» Advancements in digital photography
driving the opportunity to print digital
images on distributed output devices;
» Increased adoption of color output in
business; and
» Advancements in electronic movement of
information, driving more pages to be
printed by end users when and where it is
convenient to do so.
As
a result of these market trends, Lexmark has
growth opportunities in low-end monochrome
laser printers, color lasers, laser
all-in-ones, photo all-in-ones, and business
inkjet four-in-ones.
Lexmark's overall strategy to take advantage
of its growth opportunities is three fold:
» Expand our product segments;
» Expand penetration in market segments;
and,
» Further develop brand awareness and brand
positioning.
We
believe we have unique competitive strengths
that support our growth:
» Lexmark is the only major player in the
industry which is exclusively focused on
distributed output;
» Our vertical integration in technology,
which historically has allowed us to drive
cost and price performance; and,
» Our large account industry teams and
retail-centric consumer teams, which drive
customer responsiveness and flexibility.
Those strengths have led to our position as
No. 370 on the 2005 Fortune 500 listing, our inclusion on Fortune's Most
Admired Companies list and our 2005
recognition by Industry Week as one
of its Top 50 U.S. Manufacturers. In
addition, we’ve received 2005 recognition
for our new products from the test labs at PC World, PC Magazine, CNET, Better Buys for Business,
and Buyers Laboratory, among others.
Combining customer insight with
innovative technology to create solutions
that make it easy to get things done
Lexmark is focused in two major market
segments.
The first is the business market. This was
the original focus of Lexmark when we spun
out of IBM in 1991. In 2006, this market
represented approximately 56 percent of
Lexmark’s revenue. In the business market,
our products are built around our laser
technology. We sell laser products primarily
through our large account sales team. These
sales efforts are focused on customers who
fall into six, specific industry groups:
finance, services, retail, manufacturing,
health care, and the public sector. Our
industry teams are experts are on the core
output and paper processes that exist in
each of these industry segments. Over the
last several years, our business in each
industry has moved beyond just products to
include print-centric workflow solutions and
services that solve specific paper intensive
process problems in these industries. We
help our customers cut costs, reduce cycle
times and improve productivity. This allows
Lexmark to offer unique value to these
industry customers and differentiates us
from the competition as part of our business
market approach known as 'Print, Move,
Manage'.
The second is the consumer market, which we
started in the mid-1990s and which
represented approximately 44 percent of
Lexmark’s revenue in 2006. In the consumer
market our products are built around our
inkjet technology. Our consumer market
strategy is built around offering
high-quality, competitively priced products
that present an exceptional value to
consumers and businesses and which are sold
primarily through retail channels. It is a
combination of innovative technology and
customer insight that differentiates Lexmark
from its competitors. Lexmark leverages this
unique approach to create printing solutions
that make it easier for consumers and small
business owners to create, share and manage
information and images.
We are responsible to the
communities in which we live and work, to
the environment and to the world community
as well
Lexmark is committed to acting as a socially
responsible company in our global community.
This means that we will fully comply with
the laws, rules and regulations of the
countries in which we operate.
It
also means that Lexmark will go further by
continually evaluating our business
practices using the principle of
sustainability – balancing economic,
environmental and social needs of our world
today without compromising the opportunities
of future generations.
We
want Lexmark to always be associated with a
respect for human rights, safe work
conditions, and environmentally sound
business practices, for our own organization
and those with whom we partner. |
