Brother Refresh EZ Print Subscription Service: Difference between revisions

 

By comparing the user data against the claim of cost-savings and stipulations in methodology from Brother, it is clear the scenario is one in which the choice given by Brother in no way matches a real-world situation or printing habits of the user. Furthermore, Brother engages in a purposefully misleading comparison when they state that the saving is based upon ''"average cost per page of eligible like standard capacity cartridge"'' for they must compare identical products as only genuine Brother cartridges are supplied in the program.

Brother was established in Japan in 1908 <ref>[https://wiki.rossmanngroup.com/images/a/a9/Brother_Sales_Revenue_1928-2020.png Brother Sales Revenue (1928-2020).png]</ref> primarily as an industrial manufacturer of machine parts. It was not until 1928 that Brother launched its first mainline product: an high-quality industrial sewing machine. Owing to their history in manufacturing, Brother's machines were good quality and highly regarded. They sold well and prior to the second-world war, Japanese companies like Brother had access to a highly-skilled and low-cost labor force. This allowed Brother to expand its product line and to firmly capture a share of the industrial sewing category; a market in which they still operate today.

The post war years saw significant Japanese government focus on industrialization.<ref>Mosk, Carl (August 12, 2023) [https://eh.net/encyclopedia/japanese-industrialization-and-economic-growth/ "Japanese Industrialization and Economic Growth"] Economic History Association. Retrieved February 8, 2025</ref> And by the early 1960's and 1970's, Japan's electronics manufacturing sector was not only mature but had rapidly expanded. This foundation, coupled with the large national labor pool, access to western technology and the skill-to-cost benefits from earlier government investment, quickly made Japanese manufacturers the leaders in high-quality, low-cost electronic products. Brother too, benefited from this economic environment. It invested heavily in the technology sector and by 1971, released a product that would change the company direction and growth into the foreseeable future: a high-speed, '''dot-matrix printer'''.

By the '''1990's''', Brother had identified a global category for growth and shifted its resources and focus firmly towards the Printing & Solutions ('''P&S''') market. And while it maintained its leadership in domestic sewing, the company continued to make significant gains through electronic stationery such as labeling. The returns in the P&S segment continued to provide opportunities to expand worldwide. Brother had identified a segment opportunity, not only through industrial buyers to whom Brother traditionally catered, but with small office and home office users ('''SOHO''') who purchased Brother's products for their high reliability and reasonable cost. By the mid-1990's Brother has released many successful and profitable lines:

* all-in-one printers (print, fax & scan)

* garment, label and mobile printers.

Throughout the late 1990's and early '''2000's''' the company continued to focus on its long-term relationships within the P&S segment. It identified growth and profitability in the 'parts and consumables' market. Brother understood that OEM clients, vendors, distributors and large retailers were key to maintaining a strong brand affiliation to drive this demand. To acquire additional industrial and SOHO buyers, Brother engaged in heavy promotional schedules and new product offerings. It introduced high-end, all-in-one laser printers and high-speed inkjet printers, all at price points not before seen. Brother also sought growth in emerging markets. The company invested aggressively in Asia by promoting and selling low-cost '''monochrome laser printers''', which by now had became their strength and specialty.

Then into the '''2010's''' Brother's previously positive financial results started to plateau. Its operating income and profits fell, and net sales, though marginally up, had failed to meet forecast. Furthermore, its Printing & Solutions ('''P&S''') segment had not shown the growth expected, especially in Asia where they had invested heavily. Still, Brother's strategy remained largely the same:

But by '''2015''' investors and shareholders had started to ask some tough questions. Despite meeting net sales forecast targets in Printing & Solutions (up by 5.5% YOY), income and profit were in significant decline, The previously stable Machinery & Solution division was in free-fall and the anchor for sales and growth, Printing & Solutions ('''P&S'''), suffered a 4.3% profit contraction.