R.

R Donnelley & Sons: The Digital Division

Chitra Bhuskute Divya Bawa Pooja Junnarkar Bhagyashree Ganatra Nerissa DeMoss Rohit Vaidyanathan Puneet Joshi

Four steps for internal strength

Long term strategy One technology throughout the organisation Tab on expenditure Strong sales force

Introduction
R.R Donnelley & Sons was founded in 1864. By 1995, became the worlds largest commercial printer 41,000 employees in 22 countries. Donnelley had begun printing telephone directories and the Montgomery Ward catalog in the late 1800s and still generated 60% of its revenues from directories, catalogs and magazines. In 1955, the company was organized into 38 divisions, the divisions, in turn, were collected into 8 business groups, which were part of 3 sectors.

Strengths Of Traditional Print Business

Cost effective (low variable costs) Long term relationships key to its success Building a plant specifically to cater to the needs of customers Customizable binding lines Lower cost per page

Digital division model

Promises Reduced warehousing and inventory costs Avoid mismatching of demand and inventory Total cycle time reduced from 20 days to 2-3 days Better ability to negotiate volume discount Minimal time and set-up cost required for digitalised document Lower cost in the short run

Weakness
Higher costs in the long run Unproven technology