Businessmodel of Ricoh

Customer Segments

Ricoh has a segmented market business model, with customer segments that have slightly different needs. It targets its offerings at consumers and businesses that need imaging and office solutions.

Value Proposition

Ricoh offers two primary value propositions: innovation and brand/status.

The company has embraced innovation from the very beginning. It has introduced a number of groundbreaking products and technologies, which include the following:

• The world’s first high-speed for office fax machine (RIFAX 600S)
• The world’s fastest digital full-color copier (ARTAGE 8000)
• The first multi-function printer with steel parts made from 100% steel scrap (imagio MP 9002)
• Quick Start-UP (QSU) technology, which enables a device to rapidly recover from its energy-saving sleep mode, reducing wait time for reuse
• Color QSU technology, which uses the Direct Heating (DH) Fixing System and Color PxP-EQ toner to simultaneously achieve strong image quality and high energy efficiency
• Vertical Cavity Surface Emitting Laser (VCSEL) technology, which enables the simultaneous emission of 40 laser beams, achieving high image quality and productivity The company has established a powerful brand as a result of its success. It maintains operations in over 200 countries and regions and serves customers directly in over 50 countries worldwide. It most recently generated annual revenues of US$ 19.6 billion. It consists of over 230 brands, including Gestetner, Nashuatec, Rex-Rotary, Lanier, Savin and Infotec. Lastly, it has won many honors, including recognition as a Leader in the Managed Print Services (MPS) market by Quocirca for five years in a row (2012 - 2016) and two prestigious TIPA Photo & Imaging Awards (2016).

Channels

Ricoh’s main channels are its direct sales team, independent dealers of office equipment, and independent office supply retailers and wholesalers. The company promotes its offering through its website, social media pages, advertising, and sponsorship of sporting events and venues. It has been the title sponsor of the Ricoh Women’s British Open, a women’s golf championship, since 2007.

Customer Relationships

Ricoh’s customer relationship is primarily of a personal assistance nature for businesses. It forms contracts with companies upon the sale of products through which it provides repair and maintenance services from service specialists. The company’s customer relationship with consumers is more of a self-service nature.

Customers utilize its products while having little interaction with employees. Ricoh’s website provides a number of self-help resources, including white papers, product manuals, download drivers, safety data sheets, and answers to frequently asked questions.

Key Activities

Ricoh’s business model entails designing, developing, and manufacturing products for its customers, as well as offering product-related support services.

Key Partners

Ricoh’s main partners are the multiple suppliers it uses to obtain the raw materials, parts, and components (including plastics, rubber and chemicals) used in the production of its products.

Key Resources

Ricoh’s main resources are its human resources, who include the engineers that design, develop, and manufacture its products and the service specialists who provide repair and maintenance support.

The company’s important physical resources include its manufacturing plants and the Technology Centers it operates to support customers at each of its locations.

Lastly, it places a high priority on intellectual property, with over 24,838 patents in Japan and over 24,206 patents overseas as of 2016.

Cost Structure

Ricoh has a value-driven structure, aiming to provide a premium proposition through significant personal service and frequent product enhancement.

Its biggest cost driver is cost of sales, a variable expense that includes cost of product. Other major drivers are in the areas of sales/marketing and administration, both fixed expenses.

Revenue Streams

Ricoh has three revenue streams:

• Product Revenues – Revenues it generates from sales of its imaging and electronics offerings.
• Post-Sales and Rental Revenues – Revenues it generates from post-sale services and equipment rentals.
• Other Revenues – Revenues it generates from other sources, including financing and logistics.