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Kinko's Case Study
Situational analysis -- who what where when why Kinko's revenues have declined by three percent from 2002 to 2003. The major reason behind the decline is slow growth in its consumer market and local business segments. This is particularly problematic because these two segments account for eighty percent of this company's overall business. The sale of Kinko's to FedEx is currently under negotiation. Kinko's is considering two options to help boost revenue, either radically overhauling its retail business or focusing on the commercial business.
strength, weakness, opportunity, threats
Strengths: Kinko's is a large company with revenues of $2 billion and 1,200 stores in the U.S. And nine other countries. Although it is no longer able to differentiate itself from the competition in many of its market segments, the company believes it has a very competitive and feature-rich offering for the non-FM commercial sub-segment.
Weaknesses: Even though customers across Kinko's market segments have very unique needs and requirements, the company offers the same service to each one. Increasingly, Kinko's cannot differentiate itself from the competition. In its retail stores, the company has poor "ease of process" (poorly designed signage, poor staff allocation and confusing self-service). In general the commercial segments provides poor service to its customers and is inefficiently ran, the company is losing $25...
Kinko's has a dramatically smaller presence and direct sales force than other competitors in the commercial segment. Kinko's offerings in the FM sub-segment do not current compare favorably to those of competitors such as Xerox and IKON.
Opportunities: There are a number of opportunities for Kinko's. Commercial solutions are expected to grow by almost 10% in 2004 and 2005. E-business products grew by over 40% between 2001 and 2002 and are expected to continue to do well. Kinko's should see growth through international expansion which is expected to grow by ten percent over the next two years.
Threats: Technology substitution, most notably printers, is eroding Kinko's business, particularly in the consumer and local business segments. The company is facing new competition from superstores.
III -- Market strategy -- product, price, promotion, place
Kinko's is a chain of stores that provide printing, copying, and binding services through 1,200 stores in the U.S. And nine other countries. Recently, the company is also engaging in e-business with digital document storage, printing, web-based order and e-mail. Thirty-percent of Kinko's business comes from the consumer segment, fifty percent comes from the local business market and the remainder is from the commercial solutions segment which consists of the FM and non-FM sub-segments. Kinko's…
Bibliography
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Boyle, M. (2007, January 18). January Kinko's chief: 'Willing to take short-term pain'. http://money.cnn.com/2007/01/17/news/companies/pluggedin_boyle_FedEx.fortune/index.htm
Brewin, B. (2004, January 2).
FedEx to use Kinko's stores to offer e-services to enterprise customers. Computerworld. http://www.computerworld.com/managementtopics/ebusiness/story/0,10801,88733,00.html
Gross, (2004, January 20). Why the FedEx merger with Kinko's should make UPS nervous. Slate. http://www.slate.com/id/2094149
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