The client Office Depot (NYSE: ODP) is the largest office supply distributor in the United States. Headquartered in Boca Raton, Florida, the company sells directly to large corporations most of the time. Their selection of brand name office supplies includes business machines, computer software and office furniture, while its business services encompass copying, printing, document reproduction, shipping, and computer setup and repair.
Office Depot’s revenues and profits were going up linearly for the last several years, but then turned around. Their market share used to increasing year by year, but is now flat. That’s the main reason you have been hired. The CEO of Office Depot told you that his company is willing to spend lots of money whenever necessary, but demands high growth. So, what exactly should Office Depot do to achieve high growth?
Additional Information: (to be given to you if asked)
Office Depot currently serves 90% of large corporations, i.e., no potential for high growth in this segment alone.
Currently the client is the only national distributor. In the 1980’s there were thousands of mom and pop distributors, but they are mostly gone now, replaced with regional retailers.
The client has the best contracts with suppliers due to large volume.
The client also has the best quality of service. The service provided is unmatched in the industry.
The client has been losing customers to competitors. In fact, it invested a lot of money and recently implemented a large new purchasing system that keeps detailed purchasing information. Customer feedback indicates that all customers are ecstatic with the firm’s service, but find that it is often more expensive than its competitors.