Staples Market Structure

1594 WordsSep 17, 20127 Pages
Staples Market Structure ECO/365 August 1, 2012 Moises Rodriguez Abstract “Market structure refers to the physical characteristics of the market within which firms interact.” Currently the office supply market is saturated and the competition is tight. The leading contenders for this type of market are Staples and Office Depot, but there are many choices available to consumers looking to get the most value for office supplies. It is ironic that both Staples and Office Depot opened for business in 1986. These companies fall under a monopolistic competition structure. Staples and Office Depot maintain a high marketing presence and are recognized in the office supply industry. But because of the fierceness of the…show more content…
This company has worked hard to create a positive image and it will more than likely be around to meet the needs of Fort Bliss, SBA and GSA business contracts. Market Structure Choice Staples, Office Depot, Office Max, Reliable, Medical Arts Press, Quill, and Pencil Cup are all office supply vendors and the difference between all these vendors are minuscule. Staples and Office Depot each manufacture their own private label. Each vendor then provides the customer with a substitute to purchase against a name brand item. For example, sticky notes are a popular office item and for the longest time the market was held by Post It Notes. The times are changing and many items are being cloned by these big vendors and the pricing comparison against the name brand result in cost savings with the use of the private label items. Both Staples and Office Depot are in an elastic relationship with their customers. With the availability of substitutes and price savings, ultimately the factor separating Staples and Office Depot is price. These businesses fall under monopolistic competition and the activity is watched closely by each other. Competitive Strategies Staples has the buying power to provide the lowest pricing to its valued customers. Staples meets with potential clients and works with them to provide cost savings over the current vendor. Usually, the competition is Office Depot. In preparing an
Open Document