Office Depot is one of the most recognizable suppliers. They distribute and sell office supplies. The products they offer are paper, computers, printers, desks and other office tools. Office Depot accommodates the needs of student or workers with their everyday office supplies. Also they sell merchandise to other suppliers. Office Depot, through its international segment, operates in several countries across the world. Dadamonitor claims the company operated in 53 countries across North America, Europe, Asia and Latin America at the end of FY2010 (Dadamonitor 2011). To get an idea of how big office depot is according to Global markets direct SWOT reports, Office Depot reported revenues of 11.48 billion during the fiscal year which ended December 2011 (Office Depot Inc. 2012).
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According to its website, Office depot’s vision is to deliver winning solutions that inspire work- life. Their values are integrity, innovation, inclusion customer focus and accountability. Failure is not an option for Office Depot. It thrives on opportunities to build a strong relationship with its customers. The company is in a very specific part of the retail industry but they want feedback from their customers to understand their needs.
Office Depot envisions a future where services and innovative thinking enables customers to achieve success. The company claims to be a culture of creativity and for intelligent risk-taking. The office supplier aspires to “do what has never been done before” on the aspect of innovation (Office Depot 2013). In the past five years the company’s performance has not been doing well. In 2007, Office Depot’s revenue was $15.5 billion (Gale business Insights 2013). In 2011, it was about $11.5 billion.You cant help but say that it has let the stakeholders down. It has tried to raise the profit margins by cutting down employees and closing down stores but that solution did not have a positive impact on the revenues as they fell down every year since 2007.
Office Depot does not play the same dominating role in the supply market as it once did. The company competes with Staples Inc and Office Max Inc. Office Depotholds 22.9% of the market share, Office Max 13.5% and Staples with 39.2 %. 24% is others which includes Best Buy, Walmart ect. (Schmidt 2012). Office Depot, just like its industry, has been struggling since 2007 and is continuing to struggle.
Page 2 Office depot Situation Analysis Paper Essay
Schmidt states in his reports the summary ofthe performance: “over this period, revenue is expected to decline at an average annual rate of 3.6% to $20.8 billion, despite moderate growth of 1.6% expected in 2012” (Schmidt 2012). Ever since the recession, the office supply industry has been struggling. The business relies on private costumers so much. When people had tough economic periods they cut back on office supplies. It has forced the Industry to focus more in online operations. This would be more convenient for customers and there are more options to reach the private companies and household costumers.See More on Office