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 are operate under its original name “Staples”. Argentina operates as Officenet-Staples, Belgium and Netherlands as Office Center, Canada as Staples Canada and in Italy as Mondoffice. The company recorded revenues of $25.1 billion during 2012, an increase of 1.9% compared with 2011. 39% of revenues generated from North American Retail, 40% from North American Delivery and 21% from International operation. (managementparadise.com, Staples 10K, 2012). II. STRATEGIC DIRECTION
“Our mission is to bring easy to offices worldwide” (Staples Soul, 2012). B. GOALS/OBJECTIVES
• Maintain our leadership position by delivering on our brand promise • Focus on customer service, customer acquisition and retention, and providing our customers a broad assortment of core office products and services. • Focuses on expanding categories beyond core office supplies, including facilities and breakroom supplies, copy and print services, promotional products and furniture. • Focus on improving our perfect order metric, which measures the number of orders that we fulfill on time and without error, and have established industry leading customer service standards to support our brand promise. • Continue to make investments in Staples.com to enhance the usability, efficiency and overall customer experience. • Continue to be a destination for core office supply categories like ink and toner and to become an authority for business technology through redesigned stores and an expanded technology assortment. • Focus on strengthening our value proposition with customers, increasing the productivity of our marketing programs, leveraging best practices from our North American businesses, including our mid-market contract selling model, and expanding our mix of business services with a focus on copy and print. • Focuses on improving profitability by reducing overhead expense, increasing sales of higher margin Staples brand products and improving the performance of our supply chain. C. INDUSTRY - SIC or NAICS
As taken from Hoovers.com:
Primary SIC Code – 51220000: Stationery and office supplies Primary NAICS Code- 453210: Office Supplies and Stationery Stores D. MARKET STRUCTURE
The Office Supplies Industry operates as a monopolistic competition where where the market has many firms, none of which is large, there is free entry and exit into the market and each firm in the market produces a differentiated product. III. INDUSTRY ENVIRONMENT-PORTER”S FIVE FORCES OF COMPETITION A. RIVALRY AMONG COMPETITIVEFIRMS
The company range in size and product diversity: high-volume office supply providers, warehouse clubs, copy and print business, online retailers, ink cartridge specialty stores, discount retailers, as well as several local and regional contract stationers. A large number of players, low switching cost, low product differentiation, easy to expand through internet, poor market growth in recent years increase the rivalry among player. Overall, rivalry is strong. Staples competes both internationally and domestically with a number of corporations from multinational to much smaller domestic specialised retailers. Staples major competitors are OfficeMax, Office Depot and...