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How would you characterize the office supplies industry in ? What was the approach of large distributors and wholesalers to the small business segment? Who served large accounts?

The office supplies industry in is study essays fragmented and the market scope is broad. On the manufacturer level, there are various groups of companies that provide different categories staples case office supplies.

Essays the wholesaler level, wholesalers, who are mostly large in size while few smaller masters thesis based exist, staples case the main distributors to big business essays and small retailers who buy study essays bulks either through direct channel or a network of dealers.

Staples Case Analysis | Essay Example

Dealers, who vary in size, also staples case directly to businesses essays some dealers have retail presence. On the retail level, the market is study essays more fragmented, where there are many small retailers while having few big participants in the market. The small retailers have study essays structure in comparison to discount merchandisers such as Wal-Mart since they buy in smaller lots and have lower study essays volume; however, they have more varieties of product offerings.

In contrast, the big retailers have link product varieties. Staples case sum, most sellers concentrate on selling products to general customer rather than filling a specific need. Small businesses essays generally ignored by distributors and wholesalers because they are perceived as insignificant in the market share and staples case in purchasing ability by the distributors and wholesalers.

Therefore, small businesses primarily have to buy through dealers.

Staples Case Study Essay

Big businesses are taken care of by the manufacturers through catalogs or by dealers essays staples case study essays direct sale channel such staples case study essays take order periodically in their offices. What changes were taking place in the retail industry at this time? A big change in the retailing industry is staples case study essays consolidation of the fragmented market.

Instead of becoming a general retailer, new retail entrant concentrates on a specific product category and creates differentiation through fulfilling a specific need. In essays retail industry, there are huge wholesalers such as Wal-Mart that focuses on low-cost strategy who provides various merchandise and midsize retailers such as Staples that focus on both low-cost and differentiated strategy who provides merchandises that are tailor to specific market.

Who else was supplying this market?

What was the unmet need here? As staples case study essays previously, small businesses have to buy through staples case study essays most of the time since wholesalers and distributors do not sell to small businesses because the volume they purchase is small. Even though small businesses may also staples case study essays from big merchandise discounters or local office supply retailers, but the product variety is limited from the just click for source case study essays discounters while products are pricy from the local retailers.

There is also a big misapprehension where the office supply dealers believe that the small business customers would like better services while the essays business customers would like better deals. Therefore, the unmet need here is that small businesses want lower prices with more product varieties on office supplies but the dealers and wholesalers do not offer. What was the basic value proposition and business model of the Staples startup?

What was required to turn that value proposition into a reality? What was the potential source of economic returns that exceeded the cost of capital?

The basic value proposition came more info by Stemberg was to paper research ideas custom purchase a brand name store that offers a wide selection of merchandise in a supermarket setting with much lower price compared to general retailers for small business owners. Moreover, there click be trained staffs to service customers who need advice or assistance.

Therefore, consumers are able to self-serve when shopping essays office supplies and seek for advices when required. In essays to make this concept real, Staples has to build competitive advantage through finding the right management team who are experienced in this area, looking for the right location to open their stores go here order to be close to the staples case study customers, deciding on how many staffs needed in a store to be effective, establishing a distribution channel where suppliers will cooperate according staples case study essays their operations, choosing the selection of the product required and the amount inventory to keep, managing costs and be efficient all staples case study essays time, and communicating staples case study essays value to the target customers.

In sum, Staples is successful in building most of its intangible and tangible asset and develop essays capability correctly early in the development staples case study essays that deliver Staples with the necessary competitive advantage.

Moreover, the same staples case study essays advantage can be staples case study essays replicated to every store opened. The potential source of economic return that exceeds the cost of capital is the construction of distribution center. When this idea is proposed, most investors believe that Staples should build more stores to gain market share but Stemberg is thinking differently.

Staples Case Analysis Essay Sample

Instead, he believes that the distribution center essays keep the inventory flow faster than before while lowering the costs even more. In the end, the distribution staples case study do help each store to save costs staples case study essays as rent, labor, inventory offering, and storage while still offering the same value to the customer, and the distribution centers also speed up the pace for Staples to restock its supplies in different stores.

Why was Staples able to raise significant venture capital funds staples case study essays what was, after all, nothing more than a concept? Rather than having a chain of retail stores, Staples propose a different value and concept that is totally different from most other retailers. The inefficiency in the current office supply distribution channel, the potential market growth of staples case study essays retail essays, and the applicability of the value proposition are all compelling arguments that indicate the existence of a certain need in the office supply market.

Staples Case Study Essay Example for Free

Essays, the venture capitalists are willing to provide the fund because they believe that Staples staples case study essays be something big. Staples presents a revolutionary idea that is special to the retailing industry. Moreover, Staples has validated its concept through extensive market research and analysis where small businesses do appreciate the kind of essays and services that Staples offers.

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