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Introduction :

 Founded on March 1, 1976

 Andrew Cha, Owner
 Family owned
 Special effects photography laboratory
 Services local agencies in Southern California
-> agency giants
-> large retailing companies
-> entertainment companies
 Sales peaked in 1988 at $5 million

Industry & Competitors

 Diverse range of products

-> Greetings cards
-> Catalogs
-> Financial reports
 Competitors :
Largest Printer : R.R Donnelley & Sons
National pre-press houses
Standalone firms
 Why go to Colorscope :
Personalised Relationships
Skilled employees
Quality service and products
Customer Loyalty

Cheaper technology is lowering entry barriers.

„ Better technology is eroding quality-based

competitive advantage.

„ Intense competition from

„ small stand-alones,

„ large national chains, and

„ backward (vertical) integration by large printers.

Conclusion :

 Change Pricing Strategy : The Colorscope Inc should adopt a more effective Pricing Strategy like Cost Plus
Fee. This will help reduce high cost of rework.
 Cost Quality Trade Off : Currently, high quality work is costly for Colorscope Inc so as a trade off it should :
-> Update the equipment
-> Update policies regarding rework
-> Rework Employee compensation

Recommendations :

 Upgrade technology
 Restructure the organisational chart
 Turn efforts towards web-based and television based media sources
 Find new location better suited to spatial needs