There are many possible strategies that Colorscope could implement to dispel the current problems it faces. Its current competitors have new technology which makes their products more affordable, and so adapting to this new technology would be the first step. Colorscope could also raise money by issuing further investments of stocks and bonds. Another measure could be for the executives to give away a stake in Colorscope to another dominant printing company, who would see the venture as highly attractive thanks to Colorscope's long establishment.
Colorscope should aim for a more diverse customer base, and not rely on single customers to account for such large amounts of the company's overall revenue. As such, it would be a good idea for the company to adopt a high impact marketing campaign to attract new clients, or else consider reducing the size of the company.
While it was stated that Colorscope could take on the technology of many of its competitors, it would also make sense for them to hold off this idea in favor of emerging technologies. The company could purchase the next generation of printing technology and so gain an advantage over its rivals and be the first in the field to have the technology. In short, Colorscope needs to stop being passive and stale for innovation in the printing industry, and become prospective, leading new technologies, marketing, and commercialization (PDMA 2004). If they do not do this, then they will be playing a perpetual game of catch the leader with rival companies. Pushing for innovation does not mean blindly jumping on the next new technology to emerge however. Before such new technologies are embraced, the efficacy, productiveness, and potential profits of new technologies should be thoroughly investigated first (Hedtke 2005).
If Colorscope is to extend its custom then it needs to consider its products, pricing, promotion and place. One error that the company makes is not to reduce the price for larger bulk orders. This is clearly an error since any customer buying in bulk would be put off from purchasing because there is no advantage. So, Colorscope needs to adopt a new pricing policy, which makes the price of order inversely proportional to the order size. To long established customers who might feel disenfranchised by such a change, there should be rewards to these customers, to stop them from buying instead from the competition. To prevent customer going away and coming back, these rewards should be eliminated if they leave, which will increase the number of clients who stay with Colorscope.
In terms of the product, the company should think about providing extra services that will compliment its color image service. Such services should be thought out carefully so that they are original that no other company can offer, so that the customers feel like they have a unique advantage with Colorscope, even if they do have to pay more. A unique proposition would be highly advantageous.
The next step is marketing. It is no good having great new products and services, incentives and so on, without effective marketing so that the right and most relevant clients are targeted. Small firms should be on the agenda, since larger firms will likely already have the technology in place to do their own printing. It is unlikely that smaller firms will stop buying from Colorscope and install their own printing equipment, and this will make long term client relationships more common.
In conclusion, Colorscope can either follow their competitors and utilize the same technology they are, or they can use other methods highlighted in this paper to attract new clients, and to keep hold of existing ones.
Hedtke, John. "Dozen Great Myths About New Technology." Rough Draft, the Newsletter of the Phoenix Chapter of STC 2005.3 (March/ April 2005). 27 Nov. 05
Product Development & Management Association. The PDMA Glossary for New Product Development. 2004. 27 Nov. 05