Staples Market Structure
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 competition, there are other office supply vendors like Quill, Reliable, Office Max, United Stationer’s, Medical Press, and local mom and pop storefronts offering the products that most offices need to operate and maintain a business presence. There are high profits to be made in the case of Staples and the possible collapse taking place in the case of Office Depot.
Staples Market Strategies
Staples is the largest retail vendor of office supplies and Office Depot is a distant second place vendor. Staples wanted to reinvent its image and stage itself on a totally different selling platform against Office Depot and in 2008 it outdistanced itself with the buyout of Corporate Express (CE). This buyout clearly made the playing field lopsided; CE a Dutch owned business was the largest business to business office supply vendor. CE serviced the business community and provided value to its customers. The company sales force handled accounts like Wells Fargo, American Airlines, professional athletic teams, hospitals, and school districts located in the United States. With the buyout of CE, Staples was able to position itself as the top retail office supply vendor and business to business vendor. Staples was
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 competition, there are other office supply vendors like Quill, Reliable, Office Max, United Stationer’s, Medical Press, and local mom and pop storefronts offering the products that most offices need to operate and maintain a business presence. There are high profits to be made in the case of Staples and the possible collapse taking place in the case of Office Depot.
Staples Market Strategies
Staples is the largest retail vendor of office supplies and Office Depot is a distant second place vendor. Staples wanted to reinvent its image and stage itself on a totally different selling platform against Office Depot and in 2008 it outdistanced itself with the buyout of Corporate Express (CE). This buyout clearly made the playing field lopsided; CE a Dutch owned business was the largest business to business office supply vendor. CE serviced the business community and provided value to its customers. The company sales force handled accounts like Wells Fargo, American Airlines, professional athletic teams, hospitals, and school districts located in the United States. With the buyout of CE, Staples was able to position itself as the top retail office supply vendor and business to business vendor. Staples was