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Shutterfly Inc. (SFLY) Takes Photography to a New Level

This small capital corporation from Redwood City, CA has set a trend that much larger peers would do well to emulate. It has taken its business to a new level of competition. The stock is listed as a member of the Photography Industry, but the company has used its technology to enter social networking and personal publishing spaces on the Internet. It has shown rare customer insights in the process.

The company has two primary ways of generating profits from the services it offers customers through its website. Firstly, the company makes and sells durable photo albums, calendars and greeting cards with personal snap-shots, as well as conventional prints of photographs. Secondly, the company markets a variety of desktop items and objects for everyday use which are manufactured by third parties.

This business model appears to work well. Website visits have grown by 32% over the last 12 months. New browsers register every month. This has direct implications for business results. The management has announced pleasing figures for first quarter of financial 2008. Revenues have jumped by 29% over the previous year. Print revenues have grown by 17%, proving that many customers continue to prefer this form of expression even in the digital age. Existing customers contributed 78% of total net revenue in a strong demonstration of loyalty.

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