Diversification
for Service activities related to printing (ISIC 1812)
Given the secular decline of print media, moving into value-added services is essential for long-term firm viability.
Strategic Overview
Diversification in the printing sector acts as a hedge against the inevitable decline of traditional print volumes (MD01). By pivoting toward high-value services such as cross-media campaign management, variable data marketing, and specialized wide-format signage, firms can insulate themselves from the commodity-price wars typical of offset print.
However, diversification introduces technical debt (IN02) and requires a significant shift in operational culture. Successfully moving into new segments requires aligning the firm's existing logistical infrastructure with new demand patterns—such as the rapid turnaround requirements of personalized marketing—while avoiding the 'innovation tax' of high R&D spending on unproven technologies.
3 strategic insights for this industry
Margin Migration to Services
Value-added services like kitting, direct mail fulfillment, and database management command significantly higher margins than ink-on-paper.
The Digital Gap
Firms failing to provide digital integrations are increasingly excluded from multi-channel marketing campaigns (MD06).
Prioritized actions for this industry
Launch a Creative/Marketing Service Unit
Captures a larger share of the customer's budget by providing the 'what' and 'why' behind the print.
From quick wins to long-term transformation
- Expand services to include fulfillment and shipping/logistics
- Offer basic design/file preparation services as a bundle
- Invest in variable data printing (VDP) software for direct mail personalization
- Develop cross-media expertise (QR codes, augmented reality print)
- Strategic acquisition of a digital agency to provide turn-key marketing
- Repositioning as a brand-support service provider rather than a print shop
- Underestimating the talent gap required for digital services
- Over-investing in equipment before securing pilot customers
Measuring strategic progress
| Metric | Description | Target Benchmark |
|---|---|---|
| Revenue share from value-added services | Percentage of total revenue from non-print-only services. | 30-40% |
| Customer Lifetime Value (CLV) | Increased spend due to cross-selling print+digital services. | 20% YoY increase |
Other strategy analyses for Service activities related to printing
Also see: Diversification Framework