Clover's Comeback Wasn't Luck; It Was Boldness.

Clover's Comeback Wasn't Luck; It Was Boldness.

by ray stasieczko February 21, 2020

Well, it has been a couple of months since the great Clover comeback. Today it takes bold and robust leadership to navigate an industry in decline and changes to its marketplace. Clover Imaging defiantly has the Boldness, and I am excited to work with them as I continue my obsession in winning the A4 Revolution.

When industries consolidate, it is essential to be on the front side of the consolidation. Clover over the last decade did a great job putting together the key players in the remanufacturing industry under their label. Not only did Clover gain control of the collection of OEM spent cartridges, but they also gained control of their better competitors in the remanufacturing business — building a manufacturing and distribution infrastructure that is unrivaled in the industry.

Today, we in the industry are watching the saga between Xerox and HP play out. As we all study this mega-merger, one thing stands out. It's the Boldness from the Xerox leaders, which will define the outcome. Xerox is leading the much-needed consolidation of print manufacturers and distribution. When supply and demand are out of balance, the smart leaders bring back balance, and that balance only comes from consolidation in declining markets. 

During shifts in buyer, sediments diversification is also a play in the handbook. Clover over the last decade did its part in taking diversification risk. As we see, they shredded some of that diversification, and by doing that, they brought to bear a stronger than ever balance sheet and divested themselves of distraction.

In addition, Clover hasn't become the industry leader by becoming complacent. Simply stated, Clover's superior engineering and manufacturing capabilities, backed by a robust patent portfolio, enable them to excel at being first-to-market with the highest quality remanufactured products. But their prowess doesn't end there; they also have a nimble, experienced management team with a proven ability to execute and an extremely loyal customer base. It's this trifecta that makes them a force to be reckoned with.

As we look at Clover today, the one thing apparent is that Clover 2025, as I describe it, is now positioned correctly to capitalize on the next significant industry shift. That shift will be the migration of millions of A3 Multi-Function print and copy equipment to A4 printers and A4 MFPs. This migration is already underway, and there will be no going back.

The industry must understand that in the past, end-users migrated the other way. Customers started with A4; when the industry started, there were no A3 equipment or needs for its capabilities. End-users increased their demand for document recreation so, the needs and applications drove the industry to bigger units with greater capabilities.  

Now it's 2020, and the end-users are replacing the need for physical document recreation with digital applications. These digital applications are eliminating the need for a paper-based structure of information. Screens are replacing paper. 

It is safe to say that end-users who replace their oversold A3 equipment with A4, which is more than suited for today's market realities will never upgrade back to A3. The A4 Revolution is about a permanent replacement. Clover has excellent opportunities, and as long as their leadership team stays bold, they will bring life to those opportunities. Those who remain focused on the end-users will see alternative paths and be ready to migrate to whatever the customer determines is the better means for them to reach their desired outcomes.

I am excited to have Clover as an ally in the A4Revolution. Congratulations, Jim and the Clover team, keep up the great work and let's capitalize on the fact of being the biggest and the boldest of all your peers.

 "Status Quo is the killer of all that will be invented." 

CEO/Founder TEASRA,The Innovation Channel and Host of The End of The Day With Ray!

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 Ray Stasieczko  

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