Staples has been able to create a largely successful chain of office supplies stores globally. The main problem for Staples now is to maintain the lead that they have over their competitors. The rivalry that exists in the office supplies industry has increased since Staples first opened, and while they have managed to maintain their lead thus far, they will have to make some changes in order to remain the office supplies retailing leader. Porter’s 5 Forces Rivalry among established firms in industry
Page 1 of 4 Case #8: Outsourcing at Office Supply Inc. Through the initial integration of information technology into its core business, Office Supply Incorporated (OSI) attained a large cost advantage over its competitors and reaped rewards in both profits and stock prices. Unfortunately, as Nicholas Carr outlines, IT is becoming more of a commodity for companies and less of a source for strategic differentiation. Moreover, lack of IT expertise within OSI has begun to inhibit the growth of business
OFFICE SUPPLY, INC OUTSOURCING IT INFRASTRUCTURE TO MAXIMIZE BUSINESS VALUE S544 - 12235 - DECEMBER 7, 2009 Aditi Parekh | Brian Honaker | Johann Fischer | Matt Blair Recommendations for Outsourcing at OSI 2 Business Strategy Costs/Benefits Implementation Change Management Risks • Decrease infrastructure costs by utilizing a more specialized, third-party staff. • Experience cost-savings during the 2nd year, but face increased expenditures during 1st year. • Maintain availability and
substitutes of coffee, such as tea or hot chocolate. In the office supply industry, the threat of substitutes is very high because the threat does not only come from substitute products but it also comes from the threat of online retailers and the general merchandisers, such as Wal-Mart, Target, and Costco. These types of sellers are substitutes due to the fact that they are not in the office supply industry, yet they offer office supplies at a cheaper price. Now days, consumers rely more on digital
Financial Appraisal of Office Depot Part 1 Background introduction for Office Depot Office Depot is a supplier of office products and services. The company's selection of brand name office supplies includes business machines, computers, computer software and office furniture, while its business services encompass copying, printing, document reproduction, shipping, and computer setup and repair. An S&P 500 company, Office Depot generates revenues of over US $14 billion annually and has 42,000
Staples and Office Depot Inc. are both office supply chains. Today both companies are doing great considering where they came from and their competitive market. It is safe to say Staples has more than 2000 stores while Office Depot has above 1600 stores throughout the world. According to the case they were both originated in 1986 and while being founded early on over the next decade they and additional office supply chains have contended belligerently in order to provide a suitable, unfailing and
China, war and terrorism issues in the Middle East, and the growing unemployment rate in Australia, all have a way of affecting either the supply chain, the sales and revenues, or the increase in the cost of products (Christodoulou, 2010). Demographics forces. Demographic forces will not have much of an impact in either which direction as the office supplies industry has over and over again facilitated all age groups, taking into account small and large businesses, school goers, young children,
were ready to start a new business adventure in the office supply industry. Both men had worked in the retail industry, and was open to building a company with a design twist of “Toys R Us”, which would be a business model structure into an office chain supply company that would service smaller business owner. According to Alan (2009) the business idea was created by Tom Stemberg from the concept being able to supply consumer with office supply at the best price. Due to financial situations Mr. Stemberg
presented was to determine if Staples could successfully revise its strategy to increase its profitability and profit growth. It is hypothesized that if Staples is able to incorporate combining methods of revising strategies, increasing demand for office supplies, and embracing technology, then it will position them to be profitable once again. The literature review revealed several weaknesses within Staples, indicating that it is in a vulnerable position with all of the surrounding threats in its industry
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