MPS Changes the Market - Who Wins and Who Loses

Implications: The Photizo Group has identified Managed Print Services or MPS as a key dynamic which will fundamentally change the shape of the printer and copier markets and how decisions for these products are made.  This will impact all of the major players including HP (HPQ), Lexmark (LXK), Xerox (XRX), Oce (OCE), Samsung, Brother, Konica Minolta, Sharp, Okidata, Ricoh, and the remaining players in the market.  This is an important dynamic to understand since our analysis indicates that MPS engagements will account for over 1/3 of all printer, copier, and MFP devices in business by 2012.  Companies who are able to capitalize on this trend will gain control of the devices in-place in business, and as a result capture the highly profitable supplies stream which is the lifeblood of profits for equipment manufacturers.  This is critical information for investors to understand as they evaluate which companies will win, and which will lose in this incredibly dynamic market.

Analysis: As the market shifts to a MPS based model, some firms will win, and others will lose.  The biggest winner will be the firm that is able to position themselves as 'the' source for MPS engagements.  According to Photizo Group research, no firm is currently the clear leader.  The Photizo Group MPS Decision Maker Study shows the strongest vendor is HP with a 55% unaided awareness level.  However, for a firm to be perceived as the dominant leader in this space, they must have in excess of 75% unaided awareness.

Today, some firms are beginning to pull ahead.  HP has just surpassed Xerox to grab the leadership position.  Canon and a host of other 'second tier' competitors are quickly moving up the curve.  The bottom line is that this is, in my opinion, THE metric to watch over the next two to three years as the market begins a massive shift in its basic purchasing model.