Many of the macro trends in the digital imaging supplies market remain the same year after year: fierce competition, a plethora of lawsuits focused in intellectual property, and the reduction of profit margins. But many forces shaping the competitive landscape were distinct to last year. Companies felt the squeeze of margin compression more acutely in 2007 as the cost of raw materials and transportation increased to keep pace with skyrocketing petroleum prices. There were also new currency issues last year. As the dollar plunged, renewed interest was paid to exchange rates as firms looked to minimize the damage — and maximize the advantage — resulting from the weaker greenback. As usual, new lawsuits were filed with regularity throughout the year, so the courts continued to play a role in the industry. We received rulings, however, from some high-stakes lawsuits in 2007, which had an immediate impact on certain markets and future implications for others.
Market forecasts
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This article will be available online on 09/01/2008
