RR Donnelley Analysis

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Competitive Analysis - RR Donnelly, Quad, and Trend

RR Donnelly, Quad, and Trend each have their competitive advantages, including customer satisfaction and worldwide access, brand portfolio and sustainability initiatives, and environmentally-friendly materials and value-based customer services, respectively. The three companies also have their own respective weaknesses, including a lack of investment in research and development, attrition rates in the work force, and lower employee satisfaction.

RR DONNELLY

Overview of the Company

  • The Company was founded in the year 1864 and its operations are in the locations North America, Latin America, Asia and Europe. It has more than 42,000 employees and was ranked in 2017 Fortune 500.
  • The Company provides integrated communications helps the organization to create, optimize, manage, and deliver to their multichannel marketing and business communications.

Publishing and Printing Services

  • They provide Business services in categories like Presentment, Product and Process.
  • In presentment category, they provide publishing and print services like commercial and digital print, business communications solutions, and business forms.
  • In commercial and digital print, the company has a local and global scale approach that provides anything from simple forms to automated workflow forms and allows the customer to customize the service.
  • For business communications solutions, the company provides online and offline communications solutions.
  • Business forms are provided with cost effective features in production and distribution services.

Competitive Advantage

  • Customer Satisfaction: the company provides a high level of customer satisfaction connected with the customers throughout their journey.
  • The services have both business and marketing solutions, which helps the companies to provide a hassle free service to their customers.
  • Worldwide Locations: the company runs operations worldwide and they expand to new locations successfully, by which they increase the revenue and diversify the economic cycle risk in the markets.
  • Global Quality and Safe work place environment: RR Donnelly has various environmental registrations, safety registrations, and quality registrations, which indicates that the company prioritizes workers' safety and environmental safety as well.

Weakness

  • Investment in research and development is less compared to their competitive companies and financial planning is not done properly.
  • The company is subject to different taxes in multiple jurisdictions, since it is operating worldwide, and also the operations regulations change upon the political conditions in the country in which they operate.
  • There are some failures in integrating small companies to major firms due to the work culture differences.

Market Position

  • In the 2nd quarter of 2019, the company saw a decline of -10.17%, despite the competitors' increase in revenue by 4.13%.
  • The net sales of 2018 were $6.8 million, which is 2% less compared to 2017.

Key Customers

Major News

  • Due to postal action, the price of the mailing services changed in the company in January 2019.
  • The company is planning to provide better marketing attribution capabilities with the help of Marketing Evolution’s advanced decision-making platform.

QUAD

Overview of the Company

  • The company provides print solutions, media solutions, and logistics services and started publicly trading in 2010.
  • Harry V. Quadracci was the founder of the company.
  • The company provides services like marketing strategy, creative solutions, print, media, in-store, packaging and marketing management services.

Publishing and Printing Services

  • Quad provides commercial and specialty services such as envelope inserting, variable printing/labeling, automated lettershop inserting, publications, direct mail, catalogs, books, directories, retail inserts, and logistics services.

Competitive Advantage

  • Brand portfolio: Quad has a strong brand value, which helps them to build their company and expand their services with new products.
  • Localization content: the sales were low in the National Grocery Store, so Quad made localized banner content for 22 countries, which increased their sales.
  • Reliable suppliers: the company has several suppliers for raw materials, which helps them to overcome supply chain bottle necks.
  • Sustainability initiatives: Quad finds a way to print more with less resources, which is why they prefer recycling.
  • Reusable products recycled by the company include paper, strapping, plastic, aluminum, metal plates and parts, wood, pre-print, and cardboard.

Weakness

  • Attrition rate in work force: compared to their competitors, Quad/Graphics has a higher attrition rate.
  • This requires more attention to employee development.
  • Integrating firms: the company is unsuccessful in integrating firms; for example, the LSC and Quad merger was unsuccessful but fortunately did not affect Quad significantly, since the company's shares increased by 7.9%.
  • This demonstrates that the company is unable to merge with different culture firms.

Market position

Major News

  • Quad and LSC company abandoned a $1.4 billion merger deal, which declined the LSC share by 36%, a record low for the company.
  • Thee stocks of Quad were not affected by this deal abandonment.

TREND

Overview of the Company

  • The company is one of the largest privately-held printing companies in North America and was incorporated as Trend Offset Printing in 1986.
  • It has three facilities across United states in California, Texas and Florida.

Publishing and Printing Services

  • Printing and publishing services provided by the company include magazines, catalogs, direct mail, and retail advertising.

Competitive Advantage

  • Environmentally-friendly material: Trend partners with suppliers who practice sustainable forest practices and minimize the impact on the forest.
  • Customer service: According to Anthony Lienau, Chairman of the Board of Trend Offset, the company provides ultimate customer service with superior quality.
  • Value-added services: Trend provides value-added services to its customers with services such as digital editions, mobile apps, mail programs, and more.

Weakness

  • No global footprint: the company is only available in North America and operating facilities are available in only three places, with no existing expansion plans.
  • Employee satisfaction: per Indeed employee reviews, the employees of the company are not satisfied with long working hours.

Market position

Key Customers

  • Global Innovators Inc is one of the key customers with whom they had a partnership with for over 15 years.

Major News

  • Trend Offset Printing is set to acquire LSC’s retail offset printing facilities, which produce the company's main product, newspaper inserts.

Research Strategy:

Started analysis through official company websites provided in the RC and understanding the business strengths of each company. Searched for and discovered SWOT analysis performed for RR Donnelly and Quad companies and, after verification of the points, incorporated the key weakness for the companies. Overview, product services, and strength sections were filled based on the information available in the official company websites. For weakness of Trend, there were no existing SWOT analysis articles so searches were conducted through employee review sites such as Indeed and Glass Door for employee comments to determine employee satisfaction. For the market position and key customers, the information was searched and discovered in share market sites like Investors, CSI market, and finance Yahoo websites.
Sources
Sources

Quotes
  • "As the pace of innovation accelerates in a hyper—competitive environment, success depends on putting customers at the center of everything a business does. That's why RRD's mission is to enable our clients to better connect with their customers. No other organization gives clients the means to connect to their customers across the entire breadth of the customer journey, from marketing programs that generate new customers to the critical business operations that serve and extend the brand."
Quotes
  • "Changes in customer preferences have reduced, and may continue to reduce, demand for our products and services in certain markets. In addition, failure to manage changes in our relationships with our significant clients may have an adverse effect on our results of operations."
  • "Our business is dependent upon brand reputation and the quality of our client support and services offerings. If we fail to offer effective client support and services, our brand reputation could be harmed and clients may not use our products and services, which may have an adverse effect on our results of operations."
Quotes
  • "We would like to recognize our partnership, of over 15 years, with Graphic Innovators Inc. The regular maintenance they provide helps keep our presses in top working order."