Kinko's

1. Problem Statement.

Kinko’s has been losing revenues and market share over their competition for the past years; reason why its directors have been doing market research to understand the causes of their business slowdown. It’s fast growing market had substantially developed an ongoing business model, facing changes, rapid expansions & even mergers. Their model of service solutions was not fitting their customer’s needs any longer…now it is needed to increase revenues and fast.

2. Situation Analysis.

Kinko’s Customers Segments:

1. Consumer Market: Walk –in costumers, usually to do personal work such as : copies, printouts, cards… .The corresponding revenues for this segment had been declining by 6% each year. Competition high and increasing: mom and pop shops and superstores.

2. Local Business Market: this segment represents half of Kinko’s total revenues, which also includes walk-ins customers, small businesses with larger and more profitable jobs being handled. Revenues for this segment had also been declining, 5 % per year.

3. Commercial Business Market: a growing trend of customers, this group was composed of local market customers as well as a few local Fortune 500 companies. This group of customers was a fast growing trend for Kinko’s since little competition was growing in that segment; for which Kinko’s provided as outsourcing services all their business documents needs. Here is where Kinko’s finds their major new business opportunity.

3. Alternatives. Alternative solutions considered.

It’s new broadened focus provides then to move onto new customer solutions, even developing trends that can only reinforce directly one customer market.

Targeting Commercial Business Market

With this opportunity in rise Kinko´s faces a decision with huge transformation as an organization, meaning restructuring, departments, operations and service functions. Accordingly this decision faces another issue: timing. Either they start pursing the challenge now or lose the opportunity of being first mover advantage and differentiate themselves in the niche market, allowing them to stick key corporate accounts or they might give the preferential occasion to another fast growing market : self owned machines provided by (what they believe is their competition) Xerox and IKON. But where they really providing their same solution? Maybe as an overall outcome (or product), but what they are not providing is Kinko´s Service Solution. This is where Kinko´s can and need to work, in order to provide key differentiation strategy and position themselves in the actual and potential customers mind, building the need for their service and adding value to their brand .

Targeting Local Business Market