Kinkos Case Analysis

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Corporate Overview Founded in 1970 with nothing more than an inspiration, a single copier, and a $5,000 loan from Bank of America (Funding Universe, n.d.), Kinko’s Inc. has grown to be a $2 billion operation and a leader in the copy/publishing services industry. Over the course of three decades, the face of Kinko’s and the markets which it serves has evolved significantly. In the 1970s Kinko’s began as a small network of partners that sold school supplies and provide copy services to college campuses in just under 100 locations. In the 1980s, Kinko’s expanded its services to include the local business segment which consisted of small and medium businesses. With just over 300 locations, Kinko’s offered these small businesses copying, printing, desktop publishing (DTP), mailing, Internet, and teleconferencing services. In the 1990s, Kinko’s again broadened its scope and began servicing corporate markets with both Facilities Management services onsite at the client and non-FM business which consisted of corporate jobs of varying sizes. Today, Kinko’s boasts over 1,200 locations both domestically and internationally that offer a wide range of services including copying, printing, binding, faxing, desktop publishing, online order placement, teleconferencing, shipping, retail office supplies, and computer access with both full and self-service options. Environmental Assessment Despite Kinko’s significant growth, the organization has identified an alarming trend—starting in 1995, revenues in mature stores and revenues per square foot in these stores began to steadily decrease. Between 2002 and 2003, revenues decreased by approximately 3%. To further complicate matters, a pending negotiation with Federal Express has increased the sense of urgency in addressing these issues. The deal called for Kinko’s to operate independently, but to maintain their

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