Staples Case Study Essay

Restatement of research question and hypothesis. This paper researched the possibility of Staples returning back to being an industry leader after changes are made. The research question presented was to determine if Staples could successfully revise its strategy to increase its profitability and profit growth. Through this, it was hypothesized that if Staples is able to incorporate combining methods and position the demand for office supplies once again, then its outlook will be positive. 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. Thesis statement. Based on this information, the analysis of the research question and
literature review concluded to be significant in the development of the following thesis statement. While Staples may have relished in success for many years, it is apparent that its weaknesses are due to the ultimate demise in not having resilient strategic plans in place, as a result has opened it up to significant threats and is drastically driving sales and profits down. Therefore, without any major improvements to prevent such threats, Staples will not be able to achieve a competitive advantage over its competitors. Summary of major points of research. The qualitative research of the literature review revealed how badly Staples is in need of completely restructuring its organization. Its marketing methods, technological familiarity, and diversification issues show areas in which once improved upon, it could all be turned into strengths.
Staples has of recent became familiarized with social media and YouTube marketing.
Usually it tends to go with traditional methods of advertising such as television, print and online. Then it grasped that most people get their news from social media and spends a lot of time being entertained by it. In efforts of capitalizing on this new era, Staples can benefit from implementing social media strategies used by Officeworks’, an Australian company. For a company to keep up with or stay relevant, it has to maintain a strong social media presence and use it accordingly to their advantage (“Trends in the Office Supplies Industry,”
2016).
Most of Staples inventory consists of traditional office supplies, with the few electronics in stock, it is not sufficient to compete with competitors as well as it is not promoted enough. Also, Staples has not diversified much, only through adding business services and it has not been adequate to draw in more customers to the stores as again it is not advertised well. Additionally, the research revealed that strategies, leadership, and macro-environment forces are weaknesses that are threatening Staples. Strategies need to be upgraded and better implemented, new leadership needs to get a grasp of things to better serve the company, and forces such as global and technological needs to be addressed more seriously in order for Staples to be successful.
Section II: Recommendations
Recommendations for going primarily e-commerce. Customer foot traffic into the stores is a major problem for Staples. Customers are not going into stores much and its online website is not being promoted well. Its biggest competitor is currently Amazon and they are completely online. Companies that have physical stores have the disadvantage of incurring additional costs and upkeeps to run and maintain locations.
In order to weaken its threats and turn a profit, Staples should continue to close underperforming and large stores within the next year; and place all focus into getting customers to make purchases online. This results in saving money on all the associated costs such as rent, utilities, and licenses for the stores that are hardly bringing in any sales as opposed to one location that will house all products for its online business.
In addition to closing underperforming stores, Staples should check all active stores to prune out items that are not selling often or that are not necessary. Initially when Staples first started, it was as a result of the founder needing a replacement ribbon for his typewriter. Today, seeing as though not that many people may own a typewriter, it is not necessary to carry such items. If there are products within stores that are not being sold regularly, it is suggested that those products be pulled from the stores and be offered online (“Trends in the Office Supplies Industry,” 2016).
Recommendations for improving diversification methods.
There is no current method in place for improving upon Staples’ diversification methods. One of the best ways to capitalize on improving this would be to look into the needs beyond office supplies and business services. A recommendation could be to introduce a coffee station or bar and also to provide customers with free Wi-Fi, both of which should be implemented within the next six months. It could be placed in the surrounding areas close to the business services location within the stores.
While customers are waiting for items to be finished, they have the benefits of purchasing a cup of coffee and utilizing the free Wi-Fi for work or personal needs. This can help the customers to relax, not be in such a hurry, and it may even invite them to walk around, resulting in the possibility of purchasing additional supplies. The Wi-Fi and coffee addition can improve foot traffic in stores and increase sales, as well as giving Staples an edge over its
competitors. Funding for recommended changes. There should not be any costs incurred with closing stores, Staples will be saving money and the amount saved will be dependent on how many stores are closed. Money saved should be used for funding a bigger warehouse if needed for its online inventory, and for adding customer Wi-Fi access into the few stores that will be left open. Implementing this includes purchasing a basic business class internet service from a provider such as Comcast, amounting to approximately $840.00 annually which includes installation at no additional cost (“Business internet offers,” n.d.). Also, current hardware can be used to save money, but is recommended to have it separate in order to protect the security of the organization (Ciarlone, 2014). Staples has all additional items needed in its inventory, which includes wireless routers and supplies to make the coffee; these can be marked off as intended use for business purposes.
Section III: Conclusions Conclusions. Analysis was performed using qualitative research methods, it disclosed that Staples is at an unfair disadvantage as its threats drastically outweighs its opportunities and its weaknesses are by far greater than its strengths. The research pinpoints several roadblocks for Staples and demonstrates that it would be difficult for them to increase profitability and profit growth with the given strategies in place. It will not be likely to achieve being an industry leader or having a competitive advantage over its competitors unless radical measures are taken. Additionally, Staples will have a better chance of survival if it moves away from its international businesses. Online purchasing is available to customers globally and if properly advertised and marketed to get the word out, customer online sales activity should increase. Also given that the funding for recommendations are cost effective, Staples can do well in implementing either. Opinion. In order for Staples to reinvent itself, it will need to become more innovative in finding new ways to grow beyond its current core business, whether that be through new channels of product lines or services. Therefore, it has to use its resources effectively to be able to compete with competitors to be successful in overcoming threats and turning them into opportunities. Staples is a strong company and it has been around for 31 years; it has successfully overcome hard times before, and would be great to see it overcome this as well.