Staples Case Study
STAPLES CASE STUDY
Proposed Merger Between
Staples and Office Depot Leads to Concern
NGUYEN TOAN THANG tnguyen@student.bristoluniversity.edu BRISTOL UNIVERSITY
BUS 525: MANAGERIAL ECONOMICS
April 23th 2014
1. How would you classify the office superstore industry? Who are the competitors? What are the characteristics of this industry that lead to this conclusion?
Today’s office superstore industry in the United States provides a convenient one-stop shopping experience for small businesses and individuals with home offices. Operating as the retail- chains selling consumables, office superstore industry is classified as an OLIGOPOLY with three main competitors dominated the market. They are Office Depot, Staples, and Office Max. All of them offer a variety of office supplies, as well as computers, office furniture and other business related items.
Competitors in the industry:
1. Staples
2. Office Deport
3. Office Max
Office Depot, found in 1986, is the largest office superstore chain in the United States. Office Depot is first in total number of stores, first in average sales per store, first in average weekly store sales, first in total delivery sales and first in net earnings. Most importantly, Office Depot is the lowest price competitor among office superstore chains.
Staples, also found in 1986 in Framingham, Massachusett, is the second-largest office superstore chain in the United States which has annual revenue (2013) is over $24 billion, 90,000 employee worldwide, over 1,500 stores in US and over 2,200 locations (worldwide); and
OfficeMax, founded in 1988 in Cleveland, Ohio, the third major player in the office superstore industry which has over 900 locations in the US and annual revenue (2011) of $7.1 billion.
The intense competitive rivalry between Staples and Office Depot turned to be quite beneficial for consumers. Both competitors had to reduce prices, introduce innovative approaches to marketing,
Proposed Merger Between
Staples and Office Depot Leads to Concern
NGUYEN TOAN THANG tnguyen@student.bristoluniversity.edu BRISTOL UNIVERSITY
BUS 525: MANAGERIAL ECONOMICS
April 23th 2014
1. How would you classify the office superstore industry? Who are the competitors? What are the characteristics of this industry that lead to this conclusion?
Today’s office superstore industry in the United States provides a convenient one-stop shopping experience for small businesses and individuals with home offices. Operating as the retail- chains selling consumables, office superstore industry is classified as an OLIGOPOLY with three main competitors dominated the market. They are Office Depot, Staples, and Office Max. All of them offer a variety of office supplies, as well as computers, office furniture and other business related items.
Competitors in the industry:
1. Staples
2. Office Deport
3. Office Max
Office Depot, found in 1986, is the largest office superstore chain in the United States. Office Depot is first in total number of stores, first in average sales per store, first in average weekly store sales, first in total delivery sales and first in net earnings. Most importantly, Office Depot is the lowest price competitor among office superstore chains.
Staples, also found in 1986 in Framingham, Massachusett, is the second-largest office superstore chain in the United States which has annual revenue (2013) is over $24 billion, 90,000 employee worldwide, over 1,500 stores in US and over 2,200 locations (worldwide); and
OfficeMax, founded in 1988 in Cleveland, Ohio, the third major player in the office superstore industry which has over 900 locations in the US and annual revenue (2011) of $7.1 billion.
The intense competitive rivalry between Staples and Office Depot turned to be quite beneficial for consumers. Both competitors had to reduce prices, introduce innovative approaches to marketing,