Verified Document

Staples And Five Forces Analysis Term Paper

Throughout 2006 and into 2007, Staples has faced significant challenges against competitor superstores including Wal-mart which has taken on an increasingly competitive role in supplies for small business. North American Delivery, the fulfillment center area of Staples, posted a 24% gain in revenue and is on its growth plan that management defined for investment analysts in 2006. While the North American sectors of the business are mixed in results, the growth of International Operations has been significant during 2006 and into 2007. With an 11% increase in sales in 4Q06 alone which had been factors for exchange rate fluctuations, Staples continues to successfully expand into the UK and German office supplies, furniture and computer retailing sectors.

The market and environmental factors that are influencing Staples are the broader globalization of competitors' supply chains which...

Wal-mart's aggressive use of vertical integration of supply chains is a case in point. A second major factor is the use of predatory pricing on the part of both national and regional competitors throughout North America, a practice Staples has fortunately not embraced. A third factor is the commoditization of furniture and computers through the use of accelerated supply chains and pricing strategies at market penetration over profitability. Staples finds itself globally in an environment that is populated with competitors that are convinced there is price elasticity in commoditized products, yet has adverted price wars on their path to profitability. Additional market factors are the under-served UK and German retailing markets oriented to the small businesses in these countries and the economic policies of these nations favoring small business

Sources used in this document:
The International Operations sector of Staples' business throughout 2006 and into the first months of 2007 shows the greatest revenue growth, yet North American Retail has recently been dragged down by slower-than-usual technology and furniture sales, and according to Staples' latest financial results, only a 3% gain in supply sales. Staples also invested heavily in the launch of their newest store in Miami, Florida and the offering of their services programs EZ Tech and a series of in-store copy centers focused both on driving up same-store sales and also increasing high-margin revenue. Throughout 2006 and into 2007, Staples has faced significant challenges against competitor superstores including Wal-mart which has taken on an increasingly competitive role in supplies for small business. North American Delivery, the fulfillment center area of Staples, posted a 24% gain in revenue and is on its growth plan that management defined for investment analysts in 2006.

While the North American sectors of the business are mixed in results, the growth of International Operations has been significant during 2006 and into 2007. With an 11% increase in sales in 4Q06 alone which had been factors for exchange rate fluctuations, Staples continues to successfully expand into the UK and German office supplies, furniture and computer retailing sectors.

The market and environmental factors that are influencing Staples are the broader globalization of competitors' supply chains which are in turn driving down the costs of competitors' products. Wal-mart's aggressive use of vertical integration of supply chains is a case in point. A second major factor is the use of predatory pricing on the part of both national and regional competitors throughout North America, a practice Staples has fortunately not embraced. A third factor is the commoditization of furniture and computers through the use of accelerated supply chains and pricing strategies at market penetration over profitability. Staples finds itself globally in an environment that is populated with competitors that are convinced there is price elasticity in commoditized products, yet has adverted price wars on their path to profitability. Additional market factors are the under-served UK and German retailing markets oriented to the small businesses in these countries and the economic policies of these nations favoring small business
Cite this Document:
Copy Bibliography Citation

Related Documents

Staples, Inc. Who Are the
Words: 1509 Length: 5 Document Type: Term Paper

To expand market share, Staples began opening smaller stores in 2003 that are designed to facilitate entry into smaller markets (2004 Annual Report). In 2005, Staples has plans to add ten stores in smaller markets, expanding its total count of small stores to seventeen. This adds risk and uncertainty to operations. Staples will soon attack the Chicago market in 2005, where competitors OfficeMax and Office Depot are already well

Office Depot Financial and Strategic Analysis
Words: 2936 Length: 10 Document Type: Essay

Strategic and Financial Analysis of Office Depot Company Overview Office Depot Strategic Analysis Porter 5 Analysis Office Depot Strategies Office Depot Profitability Annotated Bibliography In a contemporary business environment, a strategic planning is one of the effective tools that an organization employs to achieve competitive market advantages. This paper carries out a strategic analysis of Office Depot, and identifies Office Depot as one of the Fortune 500. While Office Depot has recorded a consistent increase in total

Analysis of Shop Lifting and Retail Security
Words: 1480 Length: 4 Document Type: Essay

Shoplifting is currently one among the most prevalent of non-violent offenses in the U.S.A. Shoplifting refers to stealing property put forward for sale. It is a costly issue - U.S. businesses and consumers lose billions every year to shoplifting. The former have to bear the burden of security-related costs and that of lost merchandise, while the latter have to pay a larger amount as retail prices as sellers pass on

Smuckers SWOT Smuckers Has a
Words: 1182 Length: 4 Document Type: Case Study

Smuckers has a number of strengths from which to gain competitive advantage. The company has a roster of leading brands that are household names (2009 Annual Report). It has saturation-level distribution around the nation. The company is consistently profitable and has a healthy balance sheet (MSN Moneycentral, 2010). It is liquid, has a low debt ratio and the company is growing faster than the industry average -- impressive since its

Whole Foods Case Study Michael
Words: 1214 Length: 4 Document Type: Case Study

Threat of New Entry: Beginning a food business of any kind is difficult. This is one possible plus for Whole Foods. There is a great deal of red tape about sanitation and hygiene, when dealing with food preparation and sales. The requirements and regulations regarding organic products are even more onerous. SWOT Strengths Whole Foods is a long-standing and trusted brand name in organic produce. Consumers who believe in the organic movement have long

Dean Foods Company Dean Foods
Words: 562 Length: 2 Document Type: Case Study

However, as coffee creamer and margarine have demonstrated, there is risk of substitution even with long-established consumer staples. The intensity of rivalry is becoming greater. Firms in both dairy and soy are fighting for market share, one because of market contraction and the other because of market expansion. Firms compete for shelf space at major retailers and because the products lack differentiation, firms in the industry tend to compete strictly

Sign Up for Unlimited Study Help

Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.

Get Started Now