Daytun Inc. is a small office equipment company ($6 million in revenues) which focuses primarily on photocopier sales and service in the London, Ontario market. In the 10 years since its formation, Daytun's strategy of high quality products and high levels of service at moderate price has enabled them to outperform local operations of large multinationals such as Xerox and Canon, and they currently have the leading market share position in London. However, industry maturity, impending economic recession, and increasingly threatening moves by major competitors raise concerns about Daytun's ability to grow with their current product lines. It appears Daytun must either expand their product line and/or broaden their scope to new geographic markets in order to achieve their growth objectives. An accompanying industry note, North American Photocopier Industry - 1990 is available.

This industry note outlines the North American photocopier industry in 1990. Several recent developments, including a slowing of technological change and maturation of market demand for photocopiers, threaten to dramatically transform the nature of competition within this industry. This case was written to accompany the Daytun Inc. case 9A92M001, although both the case and this note may be used on a stand-alone basis.