Kinko's

To get an overview of the situation in which Kinko’s is operating a segmented look at the customers should be useful. The focus is the revenue potential, the customer expectations and how Kinko is serving these.

Consumer
Revenue pot.  600 mio. $ Revenue ~ 30% total revenues
 Shrinking by about 6%
 Technology substitutes at home office
 Customer visits 15x per year
 Share loss to competitors (better store locations, prices and customer approach)
Customer exp.  Convenient locations
 Quality
 Low prices
Capabilities to serve  Store locations -3,7% (1990-2000)
 Customer service complains(26% of customers experienced confusion while in store/ 46% need assistance)
 Competitors have lower prices






Local Business
Revenue pot.  Customers visits 45x per year
 1 Billion ~50 % of total revenue
 Declining by 5%
 Technology substitutes at offices
 Share loss 1-2% per year
 Customer values (similar to consumer market) convenient locations, service, quality and price

Customer exp.  Convenient locations
 Quality and speed
 Variety of products
 Low prices
Capabilities to serve Similar to consumer market
 Locations not matching demand
 Price to high in the eyes of clients
 Quality not satisfying. Negative Customer experience while visiting shops
 One size fits all approach is not working

Commercial
Revenue pot.  Served by direct sales force
 $350 mio. Revenue ~ 20% of revenue
 Growing by 5% per year

Facilities Management business (outsourcing   in-house operations) Non-Facilities Management business (drop-in jobs)
 Growing market (1-3% per year)
 Less than $30mio. Revenue (Market potential $12-$15 billion)
 20 customers
 30 locations
 Sales force 500 reps (incl. Non FM)  Market size $2-$5 billion
 $300mio revenue
 Substitution is also relevant. But declining.

Customer exp.  Cost/expense control
 Competitive pricing
 Quality
 Speed
 expertise  Speed
 Price
 Customer...