A Strategic Analysis of the Digital Cutter Business for Océ

Océ, a member of the Canon Group of companies has been selling its own line of digital cutting systems, called the Océ ProCut, into the display graphics market since 2008. The ProCut is a rebranded version of an existing cutter manufactured by Zund Systemtechnik AG. To date, total placements of cutting systems have been below original forecasts, and gross margins have been low. To address these issues, this analysis proposes three alternative strategies for consideration. Using a weighted scoring system, each option is evaluated based on a set of criteria developed from an external analysis of the industry and an internal analysis of Océ’s capabilities. The recommendation of this project is that Océ should stay with its current approach of selling exclusively Zund manufactured cutting systems. This option allows Océ to meet its strategic goals with respect to the cutter business, with minimal investment and risk.