Staples Case

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Executive Summary............................................................................................ Background ● ● Development and Growth....................................................................... Current Information.................................................................................

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4 7 11 15 17 19 24 30 31

SWOT Analysis.................................................................................................... PEST Analysis..................................................................................................... Corporate Level Strategy.................................................................................... Business Level Strategy..................................................................................... Structure and Control Systems........................................................................... Recommendations.............................................................................................. References..........................................................................................................

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Executive Summary The world’s largest office superstore, Staples, has paved the way in marketing for the office supply chain industry. With the current largest market share and over $24.5 billion in sales, Staples continues to grow as a strong financial investment and great marketing leader. After the implementation of the “easy” campaign, where Staples emphasized the convenience that only Staples Incorporated could offer the earnings per share sky-rocketed to more than double. The current campaign (2003), detailed as “That was easy,” refers to an “easy” button implying that Staples has the capabilities of taking a convoluted customer situation and simplifying it with their product differentiation, global locations, and customer-oriented services. Major competitors include Office Max, Office Depot, and Wal-Mart. Although the three main competitors also hold a large market share, they do not have the product differentiation, convenience and/or everyday customer-focus currently necessary to be as solid and strong as Staples. Key Executives Ronald L. Sargent: Michael Miles: John J. Mahoney: Joseph G. Doody: Shira Goodman: Cynthia Pevehouse: Demos Parneros: Steve Matyas: Christine Putur: Christine Komola: -Chairman & Chief Executive Officer -President & Chief Operating Officer -Vice Chairman -President, North American Delivery -Executive Vice President, Human Resources -Senior Vice President, General Counsel -President, U.S. Stores -President, Staples Business Depot -Senior Vice President & Chief Information Officer -Chief Financial Officer

MAJOR PRODUCTS & SERVICES Staples is engaged in the retailing of office products and services. The company’s key products and services include the following 2

Products: office supplies, cleaning supplies, electronic gadgets, business machines, printers, office furniture, computers and computer accessories. Services: internet, photocopying, printing, packing and shipping Brands: Staples and Quill Major Competitors The Staples Management Team has in place a committee to evaluate the business that operate similar business operations around the world and includes an independent consultant. The committee selected the peer group from a universe of 345 potential companies and analyzed potential members using various metrics related to business model, revenue, market capitalization, global reach, brand recognition and whether we compete for executive talent or customers. Based on its analysis of these criteria, the Committee determined that the following 20 companies were most similar to Staples and should serve a peer group.

Amazon.com, Inc. Best Buy Co., Inc. Costco Wholesale Corporation FedEx Corporation Gap Inc. Home Depot, Inc. J.C. Penney Company, Inc.

Starbucks Corp. Limited Brands, Inc. Lowe’s Companies, Inc. Macy’s, Inc....
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