Pitney Bowes Spots 5 Commerce Growth Drivers for 2016
Global provider of technology products and solutions Pitney Bowes Inc. PBI recently released a report, highlighting the factors which are likely to act as catalysts for commercial growth in 2016. Based on this assessment, the company believes that sourcing investments into Internet of Things (“IoT”), machine learning and data analytics will allow it to maximize profitability.
Let’s take a detailed look at the potential growth drivers for the company in 2016:
IoT: Pitney believes that machine-to-machine and IoT technologies will be at the helm of industrial businesses in 2016. Also, the report suggests that these technologies will lower operational costs, enhance productivity and improve service levels.
Digitization of physical communications: The report states that small and medium-sized businesses will be the chief beneficiaries of business digitization, with cloud-based solutions becoming increasingly available to incorporate physical and digital experiences.
Personalized localized experiences: According to Pitney’s report, retailers are strongly promoting personalized and localized experiences for customers across diverse geographies and cultures.
Data Analytics: The infiltration of Internet-based technology in almost every sphere of the contemporary market has been largely accompanied with a rise in rate of cyber crimes. Pitney believes that data analytics will play a major role in combating these challenges by protecting sensitive financial data and ensuring higher compliance with regulatory standards.
Dominance of Omni channel Marketing: Pitney feels that promotion of brand loyalty will be at the heart of most marketing strategies, as businesses continue to scout for newer techniques to offer personalized messages. Devising such strategies at a reasonable cost will dominate the marketing universe, going forward.
To Conclude
Of late, Pitney Bowes has undertaken some strategic transformational initiatives to create long-term flexibility for investment toward future growth. The company has set three major goals for improving performance, namely, stabilization of mail business, growth in digital commerce and enhancement of operational excellence.
The company continues to reap benefits of its ongoing actions in areas of infrastructure, productivity and profitability. We believe the identification of strategic investment avenues will likely bolster the firm’s competitive position, going forward.
Pitney Bowes currently has a Zacks Rank #3 (Hold). Better-ranked stocks in the industry include Mercury Systems, Inc. MRCY, TransAct Technologies Incorporated TACT and Alps Electric Co. Ltd. APELY. While both Mercury Systems and TransAct Technologies sport a Zacks Rank #1 (Strong Buy), Alps Electric holds a Zacks Rank #2 (Buy).
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