Describe The Relationship Between Office Max And Staples
Office Supply Industry
Within the $45.5 Billion office supply sector, three major players, Staples, Office Depot and Office Max make up nearly $41 Billion of that total and Staples claiming one third of the market share. Thus, barriers to entry are high as these few firms dominate market share. Establishing new relationships with both buyers and suppliers to rival the existing competition is next to impossible. In fact, with Office Max as the sector's most recent addition in 2003, it is clear that gaining market share is difficult for new entrants as the company's revenues lag behind competitors by $3 Billion.
The office supply sector has customers including corporate, government, small business, and individual households. While individual
Within the $45.5 Billion office supply sector, three major players, Staples, Office Depot and Office Max make up nearly $41 Billion of that total and Staples claiming one third of the market share. Thus, barriers to entry are high as these few firms dominate market share. Establishing new relationships with both buyers and suppliers to rival the existing competition is next to impossible. In fact, with Office Max as the sector's most recent addition in 2003, it is clear that gaining market share is difficult for new entrants as the company's revenues lag behind competitors by $3 Billion.
The office supply sector has customers including corporate, government, small business, and individual households. While individual