1. Problem statement. Kinko's has lost revenue and market share to competitors in recent years; which is why its directors conducted market research to understand the causes of the slowdown in their business. Its fast-growing market has essentially developed a continuous business model, facing changes, rapid expansions and even mergers. Their service solutions model no longer fit customer needs…now they need to grow revenue, and fast.2. Analysis of the situation. Kinko's Customer Segments:1. Consumer Market: Customers who come in, usually to do personal work such as: copies, prints, postcards…. Corresponding revenues for this segment have decreased by 6% each year. High and increasing competition: family-run shops and hypermarkets.2. Local Business Market: This segment accounts for half of Kinko's total revenue, which also includes one-time customers, small businesses with larger, more profitable jobs to handle. Revenue for this segment was also declining, at 5% per year.3. Commercial Corporate Market: A growing trend of customers, this group consisted of local market customers and some local Fortune 500 companies. This customer group was a rapidly growing trend for Kinko's as little competition was growing in that segment; for whom Kinko's has provided all the business documents they need as outsourcing services. This is where Kinko's finds its major new business opportunity.3. Alternatives. Consider alternative solutions. Its new expanded focus then allows it to move into new customer solutions, while also developing trends that can only directly strengthen a customer market. Targeting the Commercial Business Market With this opportunity on the rise, Kinko faces a decision with a huge transformation as an organization, meaning restructuring, departments, operations and service functions. As a result, this decision addresses another issue: timing. Either they start pursuing the challenge now, or they miss the opportunity to be first movers and differentiate themselves in the niche market, allowing them to stick with key enterprise customers, or they could give the preferential opportunity to another rapidly growing market: proprietary machines supplied by (what they believe is their competition) Xerox and IKON. But where do they actually provide the same solution? Maybe as an overall result (or product), but what they don't provide is Kinko's service solution. This is where Kinko can and should work, in order to provide a key differentiation strategy and position itself in the minds of current and potential customers, building the need for their service and adding value to their brand. Targeting the local business market