Question

Office Depot has almost 1,000 office superstores and a giant catalog of office supplies that offers via mail order. Yet Office Depot also enables its customers to shop on the Internet. Its website offers virtually all of the products Office Depot carries in its stores and catalog and guarantees next-day delivery to most locations in the United States with no delivery charge on orders over $50. Online order tracking is available, and customized ordering, which takes into account the historical patterns of an individual customer’s product purchases, is also a feature of Office Depot’s Internet-based channel. What do you see as the advantages of Office Depot’s multichannel strategy? Are there any disadvantages?​

Answer 1

Answer:

The advantages of the Office Depot's multichannel strategy are as follows:

• The sales will likely increase due to the availability all over the internet.
• The products will be getting free marketing in the name of ads.
• The orders would record the pattern of an individual customer's purchases, hence the customer will be coming back for more.
• The customers can be able to order hassle-free and can monitor everything all by themselves.

There are no disadvantages as such except for online fraud and banking issues. But with proper IT help, such issues can be dealt with easily.    

Answer 2

Answer:

The advantages of office depot's multichannel strategy are as follows :

1. The usage of internet has decreased the need of middlemen because it provides a direct link of the seller with the customer.
2. The evolution of technology has created great comfort to the users as they can select and compare a wide variety of products without visiting any store.
3. Online selling of office depot's includes simple payment , delivery and returning policies which is beneficial for both the seller and customer.
4. Revenue earned from online medium is comparatively higher than the physical stores , since requires less operating cost to run its  business .
5. Ability to deliver all the products with no extra charge and effort.

Disadvantages of multichannel strategy:

• Lack of contact with product / delayed possession may occur.
• Non- purchase motive are not addressed .
• Fulfillment cannot meet internet speed or efficiency.
• Online fraud and banking issues can occur . But with proper IT help, such issues can be dealt with easily.

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