Staples Inc

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I. BACKGROUND Staples Inc. founded in 1985 by Thomas G. Stemberg and Leo Kahn in Brighton, Massachussets. It is headquartered in Boston and employs 89,000 employees worldwide. Staples sells office supplies at more than 2,000 stores as well as through its catalog and call centers, the internet site, and contract sales force. In additional to typical office supplies, stores offer computer hardware and software, furniture, art and school supplies and printing and copy services ( Staples 10k, 2012). The company has 3 operating division: North American Delivery, North America Retail and International. The retail stores in Australia, Brazil, China, Denmark, France, Germany, India, Norway, Portugal, United Kingdom and the United States…show more content…
B. BARRIERS TO ENTRY: POTENTIAL ENTRY OF NEW COMPETITORS Most office supplies have little brand loyalty, low end-user switching costs, low government regulation, and easy access to suppliers and distribution channels attracts potential new entrants.Economies of scale provide a significant advantage over the larger office supply that allow them to compete with high-volume to lead the market. Company with a strong financial able to gain better profit by negotiate better contracts with suppliers.Entry can be achieved on a smaller scale by focusing on specific productrange or by developing an online retail shop. The low growth in this industry also makes it less attractive to new entrants. Overall, the threat of new entrants is strong (Merketline, 2102)
C. SUBSTITUTES There is a big challenge for those operating primarily with paper-based office products because many companies move towards a paperless office format to decrease the operational cost and environmental friendly. Office services such as photocopying, printing and binding may be substituted by electronic forms of communications. Switching costs are moderate due to already developed ICT systems by market players. Therefore the threat of substitutes within this industry is moderate. (Pearson-Jones, 2010; Merketline, 2102)
D. POWER OF SUPPLIERS Numerous suppliers especially from low

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