Lexmark International Inc’s executive management says the company has a four-pronged strategy to accelerate growth. It is focusing on the fastest-growing sectors of the printer market – color inkjet and networked laser printers; research and development – to buy and/or build new technology; a differentiated sales and marketing strategy; and a strong after-market initiative. On a Merrill Lynch & Co call, it said selling printers is primarily a way of driving demand for after-market supplies, such as toner cartridges, which have much higher margins. It controls nearly 90% of the market for its own printers. The company believes it holds around 12% of the network laser jet market at the end of last year, in second place behind Hewlett-Packard Co, and has a low teens percentage of the ink jet market, up from 9% last year. The nascent digital photo market is likely to be a significant driver for future business, it thinks.
