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AnonymousInactivehttp://www.reuters.com/article/idUSN2015235520110120
RICOH TO INVEST $300M. TO BETTER COMPETE WITH XEROX & HP
Ricoh banks on services as printer market slows
* Invests $300 million in managed document services
* Aims for $3.3 billion in revenue from area by 2013
NEW
YORK, Jan 2011 – Ricoh Co will invest $300 million to bulk up its
document management business, capitalizing on corporate demand for
services such as paper scanning and storage while cutting its reliance
on printer sales.The Japanese company, which will make the investment
over the next three years, is the latest of a string of rivals including
Xerox Corp and Canon Inc to announce expanded offerings to corporate
clients.”We have to focus much more on information management with our
customers as opposed to just the copier and the lease on the copier,”
Ricoh U.S. Chief Executive Jeffrey Hickling said in an interview.As
demand for new printers wanes, companies are looking to recoup profits
by becoming one-stop shops for a range of services from managing records
to serving information technology needs.Ricoh is aiming to generate
$3.3 billion of its annual revenue from its managed document services
business by fiscal year 2013, the company said on Thursday.Its other
target is for its non-hardware revenue, now 50 percent of its total
revenue, to reach 66 percent, also by 2013. Ricoh’s global sales were
$21 billion in the year ended March 31, 2010.Gartner’s Pete
Basiliere is one of the analysts who support Ricoh’s efforts to build up
the services side of its business.”Margins continue to shrink across
the printer industry, so printer manufacturers need to expand into other
services,” he said.Ricoh’s Hickling said the company would hire new
staff globally and retrain current employees as part of the changes. He
did not say how many new employees would be brought on board.The company
took its first major step to diversify its printer business date in
2008 when it acquired Ikon Office Solutions, which sells and leases
office equipment, for about $1.62 billion in cash.Ricoh has a leg up on
some competitors because it already has strong relationships with its
customers, since it sells them printers directly, as opposed to a
company like Toshiba Corp , which sells its printers through a variety
of channels, said Cross Research analyst Shannon Cross.But Xerox, which
acquired Affiliated Computer Services in 2009, is the current leader in
providing these services and Ricoh might have a hard time catching up,
she added.”Ricoh’s competitors are pretty far ahead of them,” Cross
said. -
AuthorJanuary 26, 2011 at 8:25 AM
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