Office Depot SWOT Analysis

adam June 2, 2012 Retailing No Comments

The office depot was founded in 1986 with it’s headquarter in Boca, Raton, Florida, US which is based on the industry of specialty retail. The company’s operations are performed by the CEO and president Neil R Austrian. The company is providing its services within the various locations that are most probably 1641. The company is engaged in providing the services of office supplies.

Strength

• The company has strong, broadens and expanded portfolio in case of the supplies in the offices.

• The office depot corporation has very strong position in advertising and marketing through various channels.

• The company has its own website in order to provide the services quickly and appropriately.

• The channel of strong retail networking is experienced by the company that increases its demand.

• The management team of the company is performing its duties most properly which becomes the strength of the company.

• The company has well built financial position that is established as because of the increase in the debts.

Weaknesses

• A lot of ads in the online service that is for the promotion of the company have some negative effect on the company.

• The company is providing its product and services for a longer period of time so because of maturity company has limited scope for the extra production.

• The operations performed by the company are declined in their efficiency which lacks in the production.

• The focus of the company towards the international market and operations is very less.

• The cash flow of the company is very limited and it has decreasing position n the market regarding liquidity flow.

• A very weak position is faced by the company in case of the diversification of the business.

Opportunities

• Trading of the goods and the services on the online can be improved and enhanced in order to improve the promotion and the services of the company.

• The company should try to enhance the existing products or invent the new sort of the products.

• The company should try to expand its business that can be possible by the acquiring markets or emerging the small firms or businesses.

• Different initiative should be taken by the company in order to make plans and strategies to achieve the long term executions of the company.

• The high quality raw materials for the production that should be made by the company.

Threats

• The economical growth in the country like US is the very less that is the threat for the company.

• The labor cost paid by the company to the labor increases the ratio of the profitability that decline the growth.

• The rise and increase in the hypermarket and discounter retail decreases the sales of the company.

• The technology used by the company is of the cheaper quality that affects the production of the company.

• The prices and the cost stated by the other competitors are lesser and the import duties are imposed on it.

References

• (2011), Office Depot, Inc.: Company Profile and SWOT Analysis.
• www.officedepot.com, Retrieved on May 22, 2012.

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