OfficeMax, Inc.

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OfficeMax, Inc. History OfficeMax, Inc., based in Shaker Heights, Ohio, has nearly 950 stores in 49 states. OfficeMax stores sell over 7,500 name brand and private-label office products from writing instruments and paper products to computers and office furniture at discounted prices. The company is currently one of the nation's office supply chain. In addition to opening more domestic stores in this year, OfficeMax has also decided to branch out into Mexico, Japan, and Brazil. Vision OfficeMax's vision is to become the leading super discount office supply retail store offering a variety of core office supply products and services by featuring more innovative store-within-store formats to better serve the customers across the nation and now the world. Mission The mission of OfficeMax is to achieve higher profit margins through improved efficiency in inventory management and distribution, accelerated sales and revenue in major markets, and advertising to attract new customers in all markets, and improved customer in all areas. Objectives CEO Feuer described the company's objective as to creating business vehicles that will contribute significant comparable sales gains year after year to become the low-cost provider with the strongest balance sheet. At this time, price, product, and place and distribution, which are focused in this study, are major concerns for the company to maintain stable management systems. Pricing Strategy In the simplest terms, price is what is charged for something. It is not easy to define price in real life situations. This is because prices reflect many dimensions. Price is a multi-dimensional component of the marketing mix that must be understood in clear, precise terms. ... ... middle of paper ... ...fficeMax must be trained in the fine art of using flexible pricing only when appropriate and when not cutting into profit margins at a deep rate. Pricing policies must be implemented over the product life cycle. This is why the price level decision must focus first on the market demand for any given product category offered by OfficeMax. One type of policy is known as a skimming price policy. This is a policy that tries to sell the top of a market or top of a demand curve at a high price before aiming at more price-sensitive customers. Skimming may maximize profits in the market introductory stage, especially if there is little competition. A skimming policy is more attractive if demand is quite inelastic. A skimming policy usually involves a slow reduction in price over time. It is important to realize that as price as reduced, new target markets are being sought.

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