Opportunities

PANDEMIC-ADAPTIVE DELIVERY SYSTEM

As it adapts its operations in response to the COVID-19 problem, Office Depot is utilizing some
of its most cutting-edge handheld technology. In addition to giving online buying and delivery
options, the firm, which also owns and manages the Office Max chain, said its locations will
remain open as important companies specialized in school and office supplies. During the
pandemic, the firm has also implemented a curbside collection service that uses Zebra
Technologies’ innovative hand-held TC51 devices.
To better fulfill their clients’ needs and ensure that they get what they need properly, they
recently introduced a curbside pickup program, said by Jonas Stillman, Office Depot’s director
of store systems. He added that it has been a huge success.
https://www.uschamber.com/co/good-company/launch-pad/office-depot-customer-experience-
tech

STEP, MDM QUALITY CONTROL

By integrating product and customer data, suppliers, and other organizational assets, the
company enables cross-channel consistency to make more effective decisions, increase sales, and
increase shareholder value. Office Depot uses data brokers to centralize and standardize product
data. STEP is a Master Data Management (MDM) platform that simplifies the process of
aggregating and combining data about an organization's goods, customers, suppliers, workers,
assets, location, and reference data from numerous sources and formats. STEP connects data
sources to generate actionable insights, which it then distributes to backend systems, as well as
online and offline channels. This is critical since today's customers demand a great time whether
they're shopping in a store, browsing on a website, or browsing on a mobile device. It enables the
organization to provide the correct facts to our clients. Furthermore, the provider organizes the
data, so we simply have to worry about releasing it online. The company is trying to level up by
comparing in the best-in-class. It recognizes, for example, that the organization requires more
comprehensive Data Governance to guarantee that it does not make short-term decisions that
have long-term consequences.

https://www.dataversity.net/case-study-office-depot-implements-enhanced-master-data-
management/
E-COMMERCE MARKET

Because of the convenience and ease of access for all different stores, e-commerce has become a
global opportunity for every business. Beyond its typical copy-and-print services, Office Depot
has stepped up its efforts to diversify its capabilities. CompuCom Systems, a provider of IT
services, was bought for $1 billion. Because of the new normal, it has been very effective in
increasing sales and client needs on the e-market. Instead of relying on its conventional business
of selling office supplies, it is now focusing on offering business services to its customers. As a
result, the website has received around 450 million visits per year in recent years.
https://www.digitalcommerce360.com/2020/02/26/as-revenue-dips-office-depot-invests-in-b2b-
and-ecommerce/

ENVIRONMENT FRIENDLY
Green industry businesses have entered the community in search of more sustainable materials
and making a commitment to reducing the company's dependency on natural resources and
contributions to climate change as the society evolves and grows by conserving resources and
energy in the environment, it also allows for more lasting but low-cost products. The
GreenerOfficeTM Rating System, GreenerOfficeTM Delivery Service, Greener Purchasing
Program, and chemical and paper policies, among other things, were designed by Office Depot
to assist reduce waste, conserve energy, encourage recycling, and reduce the use of toxic
chemicals. Thousands of high-quality, sustainable items with eco-attributes and eco-labels are
available to assist you lessen your environmental burden. It attracts customer because of it
affordable price and durability of use.

https://www.officedepot.com/cm/help/corporate-sustainability
CARDS BENEFIT
This opportunity is helpful not only to all credit card users, but also to the company because it
encourages customers to enter the market in order to improve their card usage and have more
options. Through the use of private label credit cards, it also offers revolving credit terms to
certain customers. Customers who have a good credit score are eligible for these cards for free.
The private label credit card sales transactions are electronically communicated to a financial
services business, which then deposits the net proceeds to our bank account within two days.
When contract clients purchase office supplies at one of our retail stores, they are given a store
purchasing card that allows them to take advantage of the discounted prices that come with their
contract. Third parties are in charge of all of our credit card transactions. To keep track of each
market, the corporation conducts monthly competitive pricing evaluations, and prices are altered
as needed to maintain this pricing philosophy and secure competitive posture.

https://www.sec.gov/Archives/edgar/data/800240/000095014404001691/g87376e10vk.htm
https://www.officedepot.com/a/businesstools/text/p08_7143/

TREND MARKET
The market is continuously on the lookout for fresh trends and products that will appeal to a large
number of consumers. The strategy of Office Depot is based on a societal marketing approach.
Making appropriate marketing decisions by considering consumers' demands, the company's
requirements, consumers' long-term interests, and society's long-term interests are all part of a
societal marketing approach. This strategy focuses on providing value to consumers in order to
promote the well-being of both the customer and society as a whole. It states that the company
provided the customer with the service and comfort they required, which is a huge opportunity for
a new market niche to emerge. To develop value, the organization uses a marketing process to
build profitable client connections. They are considering their customer relationship management
approach in order to improve their client relationships by providing greater customer value and
satisfaction, as well as to strive to resolve any issues that may arise as a result of their actions.
https://www.123helpme.com/essay/Case-Study-Office-Depot-182163
 Threats

IMITATIONS AND COUNTERFEITS

Because high-end brands are well-known and extensively distributed, they also increase in price
and quality, leaving the consumer with disappointment because they can’t afford to buy. Sellers
begin to look into ways to make more money. The rise of digital channels facilitating the sale
and purchase of consumer goods has fueled a rapid increase in the trade of counterfeit products
around the world. Counterfeits and imitations begin to enter the market with a well-thought-out
strategy by copying almost identical to the original brand. The bogus goods were not recognized
by some of the buyers, leaving them in a state of confusion. Because many customers are
unaware that the thing, they purchased is fake, they will blame the genuine company if the item
fails to function properly, breaks down, or fails to satisfy their expectations in general. In the
case of Office Depot, it is critical to maintain a high level of brand security in the market in order
to maintain the seller's trust.

https://www.forbes.com/sites/forbestechcouncil/2020/03/17/the-counterfeit-problem-and-how-
retailers-can-fight-back-in-2020/?sh=42ec566c1f32

INCREASING TREND TOWARD ISOLATIONISM

Isolationism is a serious threat to any business, especially if the country that went into isolation
lacked key resources and immediate economic needs, and the market would suffer as a result. It
also reduces sales if the location is one of the company's top customers, resulting in a loss in
revenue. Rather than accepting the constraints of economic isolation, the industry should look for
alternative resources to solve the shortage by adapting and adjusting their strategy to try to gain
more resources.

https://tnsr.org/2020/04/desperate-measures-the-effects-of-economic-isolation-on-warring-
powers/#:~:text=Effective%20economic%20isolation%20induces%20or,put%20toward%20their
%20war%20effort.
COMPETITION

Many similar businesses enter the market as technology advances and the business industry
expands, resulting in a lot of rivalry. Customers demand more options and choices because of
their nature, which encourages entrepreneurs to expand their firm. Office Depot has competitors
such as Walmart, Target, Amazon, and others. Amazon is the most well-known. Because of the
other company's identical services, it is apparent that it has a significant impact on sales and, in
particular, on the number of customers. In order to keep track of sales and the relationship
between the company and the market, Office Depot needs take another step-in customer service.
https://www.comparably.com/companies/office-depot/competitors

DECREASING CUSTOMERS’ TRUST

The customer's trust is at the heart of the business, and it's critical to keep it strong because it's a
symbol of the company's success, but if it continues to decrease, the company will lose a lot of
market share. Many online transactions are made by consumers who are confined by stay-at-
home rules and social distancing directives. E-commerce is convenient, but it also necessitates a
high level of faith in the merchant. When it comes to quality, service, and delivery, it's critical
for customers to know that the store or corporation will follow the rules. Customers that had
troubles or delays expressed less brand loyalty, which is not surprising, because their
expectations were not met, their connection to the store was damaged. It is critical to the
customer that the store or firm be punctual and adheres to their schedule, especially since we live
in a culture where we have limited touch and most of our purchases are made online.

https://www.forbes.com/sites/officedepotofficemax/2020/11/09/evolving-expectations-hows-
your-customer-changing/?sh=27db1d3a2681
NEW NORMAL
The long-term consequences of remote teaching include the employee's resources, talents, and
passion for the company's employees. Working from home may be advantageous, but it
necessitates a large amount of equipment in order to function well, as it is almost a one-on-one
job. Because of the same location of their profession, their responsibilities at home and at work
may conflict, which is why they lose focus at some point. It also necessitates some knowledge of
the digital world and the internet's dependability, which some employees lack. It is a threat to the
organization since it may result in fewer employees and a higher level of investment in
technology.
https://www.officedepot.com/cm/article/remote-work-for-the-long-term
 Office Depot: Competitors’ Analysis

Competitors in the Industry:

 Office Depot and its Top Competitors’ Financial Performance
on its respective Industry/Market Segment (2021)

Industry/Market Segment Office Supplies Distributor R Office Supplies R

and Retailer A Distributor and A
(Including the 2 Market N Retailer N
Segment) K K
Companies Revenue (2021) Net Income (2021)
Office Depot $9.11B 6 $120M 6
Best Buy $52.33B 4 $3.29B 4
BJ’s $16.25B 5 $590M 5
Cost Co $203.59B 2 $7.45B 3
Staples $8.7B 7 $99M 7
Target $101.99B 3 $9.04B 2
Walmart $571.96B 1 $15.41B 1

Industry/Market Segment:
 Office Supplies Distributor and Retailer
(Office Depot, Office Max, Grand&Toy)
- Office and school supplies
- Office furniture and equipment
- Breakroom essentials
 Business and Consumer Services
- Creating promotional products,
- Customizes business cards, flyers, posters
 Technology Solutions and Products
(CompuCom under Office Depot branding)
- Print and Copy Services
- Computers and laptop
Statistical Presentation of Office Depot and its Top Competitors’ Financial Performance
on its respective Industry/Market Segment (2021)

Offi ce Supplies Distributor and Retailer (Revenue

2021)
Office Depot
1% Best Buy
Staples 6%
1% BJ's
2%

Cost Co
24%

Walmart
66%

Office Depot BJ's Best Buy Cost Co Walmart Staples

 Offi ce Supplies Distributor and Retailer (Net Income,
2021)
Staples Office DepotBJ"s
0% 0% 2%
Best Buy
12%

Walmart Cost Co
57% 28%

Office Depot BJ"s Best Buy Cost Co Walmart Staples

SOURCES:
https://craft.co/office-depot/competitors
https://www.owler.com/search?pendo=gCn19S7C4fp9IX9w2av_p7zSQGg
www.corporate.walmart.com/our-story
https://www.investing.com/equities/office-depot-financial-summary
https://www.investing.com/equities/best-buy-financial-summary
https://www.investing.com/equities/costco-whsl-corp-new-financial-summary
https://statstic.com/sams-club-revenue/
https://corporate.walmart.com/newsroom/2018/01/11/sams-club-shares-changes-to-club-fleet
https://www.investing.com/equities/staples-inc-income-statement
https://www.investing.com/equities/target-financial-summary
 SWOT Matrix
Strengths Weaknesses

Opportunities Threats

 PANDEMIC-ADAPTIVE DELIVERY  IMITATIONS AND COUNTERFEITS

SYSTEM
 INCREASING TREND TOWARD
 STEP, MDM QUALITY CONTROL ISOLATIONISM

 E-COMMERCE MARKET  COMPETITION

 ENVIRONMENT FRIENDLY  DECREASING CUSTOMERS’ TRUST

 CARDS BENEFIT  NEW NORMAL

 TREND MARKET