Brother Refresh EZ Print Subscription Service: Difference between revisions
added: subscription history, overview, brother sales outline, segment reliance, segment return 2024 |
segment expansion, additional references, grammar, spelling |
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We note also that should the end-user run with the program for a year, then the Brother program is the most expensive option for printing. | We note also that should the end-user run with the program for a year, then the Brother program is the most expensive option for printing. | ||
====== EZ Auto Reorder Brother Cost Matrix | ======EZ Auto Reorder Brother Cost Matrix====== | ||
{| class="wikitable" | {| class="wikitable" | ||
! | ! | ||
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|Yes | |Yes | ||
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''<small>NB: Brother only listed here. All other competitor data remains identical to the EZ Print Cost Comparison Matrix.</small>'' | |||
====== Validated Claim ====== | ======Validated Claim====== | ||
The EZ Auto Reorder subscription offers the end-user a '''10% discount''' on cartridges while they are enrolled in program. This reduces the cost-per-cartridge by $4.80 when the product is supplied directly from Brother. | The EZ Auto Reorder subscription offers the end-user a '''10% discount''' on cartridges while they are enrolled in program. This reduces the cost-per-cartridge by $4.80 when the product is supplied directly from Brother. | ||
== Subscription History == | ==Subscription History== | ||
====== Overview ====== | ======Overview====== | ||
To understand the introduction rational of subscriptions within a traditional hardware company such as Brother, one must first understand how the changes in sales | To understand the introduction rational of subscriptions within a traditional hardware company such as Brother, one must first understand how the changes in sales and profitability have historically developed within the markets that they operate. | ||
====== Brother Industries, Ltd. ====== | ======Brother Industries, Ltd.====== | ||
Brother was established in Japan in 1908 <ref>[https://wiki.rossmanngroup.com/images/a/a9/Brother_Sales_Revenue_1928-2020.png Brother Sales Revenue (1928-2020).png]</ref> primarily as an industrial manufacturer of machine parts. It was not until 1928 that Brother launched its first mainline product: an high-quality industrial sewing machine. Owing to their history in manufacturing, Brother's machines were good quality and highly regarded. They sold well and prior to the second-world war, Japanese companies like Brother had access to a highly-skilled and low-cost labor force. This allowed Brother to expand its product line and to firmly capture a share of the industrial sewing category; a market in which they still operate today. | Brother was established in Japan in 1908 <ref>[https://wiki.rossmanngroup.com/images/a/a9/Brother_Sales_Revenue_1928-2020.png Brother Sales Revenue (1928-2020).png]</ref> primarily as an industrial manufacturer of machine parts. It was not until 1928 that Brother launched its first mainline product: an high-quality industrial sewing machine. Owing to their history in manufacturing, Brother's machines were good quality and highly regarded. They sold well and prior to the second-world war, Japanese companies like Brother had access to a highly-skilled and low-cost labor force. This allowed Brother to expand its product line and to firmly capture a share of the industrial sewing category; a market in which they still operate today. | ||
The post war years saw significant Japanese government focus on industrialization. And by the early | The post war years saw significant Japanese government focus on industrialization.<ref>Mosk, Carl (August 12, 2023) [https://eh.net/encyclopedia/japanese-industrialization-and-economic-growth/ "Japanese Industrialization and Economic Growth"] Economic History Association. Retrieved February 8, 2025</ref> And by the early 1960's and 1970's, Japan's electronics manufacturing sector was not only mature but had rapidly expanded. This foundation, coupled with the large national labor pool, access to western technology and the skill-to-cost benefits from earlier government investment, quickly made Japanese manufacturers the leaders in high-quality, low-cost electronic products. Brother too, benefited from this economic environment. It invested heavily in the technology sector and by 1971, released a product that would change the company direction and growth into the foreseeable future: a high-speed, '''dot-matrix printer'''. | ||
====== Segment Reliance ====== | ======Segment Reliance====== | ||
By the '''1990's''', Brother had shifted its resources and focus primarily towards the Printing & Solutions ('''P&S''') market. While it lead the market in domestic sewing and continued make significant gains electronic stationery such as labeling, the returns in the P&S segment continued to expand worldwide. Brother forecast this growth not only through industrial buyers to whom Brother traditionally catered, but with small office and home office users ('''SOHO''') who purchased Brother's products for their high reliability and reasonable cost. By the mid-1990's Brother has released many successful printer lines: laser (both color & mono), all-in-one (print, fax & scan), inkjet, garment, label and mobile. | |||
Throughout the late 1990's and early '''2000's''' the company continued to focus on its long-term relationships within P&S. It saw profitability in parts and consumables and understood that OEM clients, vendors, distributors and large retailers were key to maintaining a strong brand affiliation to drive this demand. To acquire additional industrial and SOHO buyers, Brother engaged in heavy promotion and new product offerings. It introduced high-end all-in-one laser printers and high-speed inkjet printers all at price points not before seen and then hoped to realize profits through the associated sales of parts and consumables. Brother also sought growth in emerging markets. The company invested aggressively in Asia by promoting and selling low-cost '''monochrome laser printers''', which by now had became their strength and specialty. | |||
Into the '''2010's''' Brother's financial results were flat if not declining. Its operating income and profits fell and net sales, though marginally up, had failed to meet forecast. Furthermore its Printing & Solutions ('''P&S''') segment had not shown the growth expected especially in Asia where Brother had invested heavily. Still, Brother's strategy remained largely the same: | |||
# Maintain US/EU presence through retail channels and '''seek growth through''' '''SOHO''' & '''SMB''' customers. | |||
# Target sales channels and support promotions to '''expand sales of mono laser printers''' in emerging markets. | |||
But by '''2015''' investors and shareholders had started to ask some tough questions. | |||
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Brother | Brother | ||