Study Guide for Strategic Management

Analyze the business-level strategy: Staples original strategy was to “Establish superstores that were smaller than most, save in rent and operating costs, cluster them in densely populated areas to justify paying for expensive advertising and stock the stores from a distribution center”. Staples see the office products market as a ‘large, diversified market for office supplies and services, business machines and related products, computer, technology and office furniture’. They attempt to reach each sector and are of the market via sales channels, which are set up and designed to be convenient to their customers – not just to contractors, but also in-store and online also. Staples stores attract different types of customer groups, each with unique purchases. Typically, contract business targets medium sized organizations, usually between 50-500 office workers. Catalog and on-line customers are usually much smaller organizations and businesses, with around 20 workers. Staples retail stores target home offices, consumers and small businesses, and they have the ability to adapt to different people’s needs, and furthermore are able to expand on market opportunities. Staples are able to benefit from a number of different economies of scale – such as an enhanced efficiency on purchasing, distributing and also advertising. Staples aims to provide excellent value to their customers, due to a combination of low prices, a wide selection of products, a high quality of products and brands with convenient store locations, easy to use website, reliable and fast delivery, and excellent customer service. Their main strategy is to maintain their leading role in the office products industry by sticking by and delivering their brand promise, which is “we make buying office products easy”

Structure and control systems: Staples focuses on increasing profitability by reducing overhead expenses, and furthermore improving the performance on their supply chain. They have