Office Depot Inc. (ODP), one of the leading suppliers of office products and services across the globe, recently launched its new iPhone and Android mobile applications to conduct business transactions on the internet using a mobile phone.
Application Decoded
Following its strategy of “Office Depot Anywhere”, the applications will enable its clients to transact at their ease from an array of services on mobile and m-commerce-equipped websites. Moreover, the company has also empowered its website for the above purpose to attract consumers, who do not use an iPhone or an Android.
Meanwhile, the new applications will provide product reviews and will enable the customers to locate an Office Depot store and access their prior transactions. Shoppers can also track their orders and get comprehensive product review along with its price through the Universal Product Code examination. Further, the buyers can create their shopping carts, which can be tracked on different devices, thus saving time.
What’s Ahead?
The company with its new strategy will keep providing its buyers the ease of shopping with Office Depot through multiple channels or from any device a client wishes to use. Further, the company expects to multiply its mobile application services in the future with the launch of BlackBerry and Microsoft operating systems coupled with tablet devices.
Our Take on ODP
The move was a necessity in this immensely competitive environment as the companies are looking for more savvier ways to approach their clientele.
Office Depot repositions itself to remain afloat in a difficult consumer environment. The company is containing costs, closing underperforming stores, reducing exposure to higher dollar-value inventory items, shuttering non-critical distribution facilities and focusing on providing innovative products and services, which in turn, are expected to contribute to margin improvement.
Moreover, the company is reviewing capital-efficient opportunities to expand its reach in Eastern Europe and South America. The company believes that India and China will provide significant growth opportunities going forward.
We remain cautious about the torpid job market. As the economy continues to struggle, consumers and small businesses remain frugal about spending on big-ticket items such as business machines and other durable products. Therefore, we believe that the demand for office products is closely tied to the health of the economy.
Currently, we remain ‘Neutral’ on the stock. Moreover, Office Depot, which competes with Staples Inc. (SPLS) and OfficeMax Inc.(OMX) , holds a Zacks #3 Rank, which translates into a short-term ‘Hold’ recommendation.
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