The assumption was that Boise Cascade's heavy emphasis on paper and wood products operations were keeping down its potentially considerable stock value and potential. Hedging its bets, even after acquiring OfficeMax, Boise Cascade also invested in upgrading wood products and paper production facilities. But it admitted that "reinvesting in a market that is not growing, it is difficult to make a return on capital," in other words that such a move was not likely to happen again in the near or far future (Boise Cascade-OfficeMax deal seen as strategic repositioning, Idaho Business Review, 2003). Branding and gaining a lock on a distribution 'arm' and creating a face for the company was deemed the way to go.
Initially, despite its substantial name recognition, OfficeMax had many problems attracting shoppers, perhaps one reason it lagged behind rival Staples. "OfficeMax, an Illinois-based office supply chain, employed a warehouse style design for years: White, beige and blue color schemes; rows upon rows heaped with computer and office equipment. It was no-nonsense and professional, and according to some shoppers, uninviting and hard to navigate" (Middleton.2006). The problem was that many people would come to the store in a very functional fashion, to simply replace a printer cartridge and leave, without lingering and impulse-shopping. This consumer spending is really the bread and butter of any market retailer. In short, the functionality and lack of name recognition that plagued Boise Cascade also was true, to a lesser extent of OfficeMax as a retailer. But to be faceless to consumers for a retail company, specifically acquired for its name, was potentially deadly.
However, with the magic marketing gurus, the OfficeMax image problem proved to be quite fixable, just as Boise Cascade's acquisition rehabilitated its name for investors. In one Florida location, the new and improve OfficeMax...
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