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Hasan Saeed KhanHasan Saeed Khan
Arif SheikhArif Sheikh
Ahsan ul HaqAhsan ul Haq
MaazMaaz
AminaAmina
RaheelRaheel
StaplesS...
OverviewOverview
 Staples invented the office superstore concept in 1986 and today is theStaples invented the office supe...
Staples GrowthStaples Growth
 Staples has not only grown but has evolved to meet the needs ofStaples has not only grown b...
IFE AnalysisIFE Analysis
 StrengthsStrengths
 Over 2,000 stores worldwide in 26 countries.Over 2,000 stores worldwide in...
IFE AnalysisIFE Analysis
 Weakness:Weakness:
 Still hasn’t made penetration into the emerging economiesStill hasn’t made...
EFE AnalysisEFE Analysis
 OpportunitiesOpportunities
 Global penetration into emerging economiesGlobal penetration into ...
EFE AnalysisEFE Analysis
 Threats:Threats:
 Expansion planning in offerings by Staples may dilute focus onExpansion plan...
CPMCPM
Competitive Profile Matrix (CPM)
  Staples Office Depot Office Max
Critical Success Factors Weight Rating Score Rat...
EFEEFE
  External Factor Evaluation Matrix (EFE)      
  Opportunities Weight Rating Weighted Score
1. Global penetration ...
IFEIFE
  Internal Factor Evaluation Matrix (IFE)      
 
Strengths Weight Rating Weighted Score
1. Over 2,000 stores world...
• Market for office supplies was blooming.
• Small and larger businesses were looking
for easier access to stationary and ...
• Major Competitors - Office Depot and
Office Max.
• Local drug stores
• Supermarkets and stationary stores
• Major discou...
Advertising/PromotionsAdvertising/Promotions
 ““That Was Easy” CampaignThat Was Easy” Campaign
– Illustrates Staples long...
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Staples

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Staples

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Staples

  1. 1. Hasan Saeed KhanHasan Saeed Khan Arif SheikhArif Sheikh Ahsan ul HaqAhsan ul Haq MaazMaaz AminaAmina RaheelRaheel StaplesStaples
  2. 2. OverviewOverview  Staples invented the office superstore concept in 1986 and today is theStaples invented the office superstore concept in 1986 and today is the worlds largest office products company.worlds largest office products company.  With around 74,000 employees, the company is committed to making itWith around 74,000 employees, the company is committed to making it easy to buy a wide range of office products, including supplies, technology,easy to buy a wide range of office products, including supplies, technology, furniture, and business services.furniture, and business services.  Fast Facts:Fast Facts: – Number of stores: 2200Number of stores: 2200 – Founder: Tom StembergFounder: Tom Stemberg – First store: Opened May 1, 1986 in Boston MassachusettsFirst store: Opened May 1, 1986 in Boston Massachusetts
  3. 3. Staples GrowthStaples Growth  Staples has not only grown but has evolved to meet the needs ofStaples has not only grown but has evolved to meet the needs of the customer.the customer.  The associates are trained to help people get in, get what they needThe associates are trained to help people get in, get what they need and get back to business of running their businessand get back to business of running their business  Staples promises to help make it easy for people to buy their officeStaples promises to help make it easy for people to buy their office products:products: – Making the stores easy to shopMaking the stores easy to shop – High demand items like paper and ink are located up front so customersHigh demand items like paper and ink are located up front so customers can easily find themcan easily find them – Guarantee to have the ink or toner cartridge in stockGuarantee to have the ink or toner cartridge in stock
  4. 4. IFE AnalysisIFE Analysis  StrengthsStrengths  Over 2,000 stores worldwide in 26 countries.Over 2,000 stores worldwide in 26 countries.  Sells office machines, promotional products, furniture,Sells office machines, promotional products, furniture, technology and business services both in stores and online.technology and business services both in stores and online.  Staples do business exclusively with enterprises in multipleStaples do business exclusively with enterprises in multiple European countries as Staples Advantage.European countries as Staples Advantage.  More than 1,00,000 employee worldwide.More than 1,00,000 employee worldwide.  Creative advertising and branding has enhanced its brandCreative advertising and branding has enhanced its brand visibilityvisibility  diversitydiversity  Innovative Culture Helps StaplesInnovative Culture Helps Staples  Size Advantages Strengthens StaplesSize Advantages Strengthens Staples  Economies of Scale Reduce Staples CostsEconomies of Scale Reduce Staples Costs  Cost Advantages at StaplesCost Advantages at Staples
  5. 5. IFE AnalysisIFE Analysis  Weakness:Weakness:  Still hasn’t made penetration into the emerging economiesStill hasn’t made penetration into the emerging economies  Strong competition means market share is less comparedStrong competition means market share is less compared to global leadersto global leaders  Company debt has remained relatively high.Company debt has remained relatively high.  Company stock dramatically under perform.Company stock dramatically under perform.  Uniqueness is missingUniqueness is missing  Distribution chain is virtually breakdown or abnormality.Distribution chain is virtually breakdown or abnormality.  High staff turnover increase staples costHigh staff turnover increase staples cost  Weak Supply Chain Weakens Staples Potential ProfitsWeak Supply Chain Weakens Staples Potential Profits  Low MargineLow Margine  Poor performance in international marketsPoor performance in international markets
  6. 6. EFE AnalysisEFE Analysis  OpportunitiesOpportunities  Global penetration into emerging economiesGlobal penetration into emerging economies  Online marketOnline market  moneymoney  Office MaxOffice Max  International Expansion Could Increase Staples' ProfitsInternational Expansion Could Increase Staples' Profits  Extended Producer Responsibility EPRExtended Producer Responsibility EPR  High Margin Paper ProductsHigh Margin Paper Products  Incorporation of recycled content gives an edge over andIncorporation of recycled content gives an edge over and above its competitor in a society.above its competitor in a society.  Better customer relationship will help to achieve more marketBetter customer relationship will help to achieve more market share.share.  Expansion in business in Middle eastExpansion in business in Middle east
  7. 7. EFE AnalysisEFE Analysis  Threats:Threats:  Expansion planning in offerings by Staples may dilute focus onExpansion planning in offerings by Staples may dilute focus on core competencycore competency  Intense competitionIntense competition  Changing govt policies and regulations on FDIsChanging govt policies and regulations on FDIs  Great fall in US Stock MarketGreat fall in US Stock Market  Consistently decreasing growth in US GDPConsistently decreasing growth in US GDP  Increasing rate of unemploymentIncreasing rate of unemployment  Increase in TaxesIncrease in Taxes  Intense competition in MarketIntense competition in Market  Office product companies are late cycle playsOffice product companies are late cycle plays  Competitors website is more user friendlyCompetitors website is more user friendly
  8. 8. CPMCPM Competitive Profile Matrix (CPM)   Staples Office Depot Office Max Critical Success Factors Weight Rating Score Rating Score Rating Score Advertising 0.11 3 0.33 2 0.22 3 0.33 Market Penetration 0.09 3 0.27 1 0.09 2 0.18 Customer Service 0.08 4 0.32 2 0.16 3 0.24 Store Locations 0.08 3 0.24 2 0.16 3 0.24 R&D 0.08 3 0.24 1 0.08 2 0.16 Employee Dedication 0.07 2 0.14 1 0.07 2 0.14 Financial Profit 0.10 3 0.30 1 0.10 2 0.20 Customer Loyalty 0.09 2 0.17 1 0.09 1 0.09 Market Share 0.06 2 0.12 2 0.12 2 0.12 Product Quality 0.09 4 0.36 1 0.09 3 0.27 Top Management 0.08 3 0.23 2 0.16 2 0.16 Price Competitiveness 0.08 1 0.08 2 0.16 1 0.08 Totals 1.00   2.80   1.49   2.20
  9. 9. EFEEFE   External Factor Evaluation Matrix (EFE)         Opportunities Weight Rating Weighted Score 1. Global penetration into emerging economies 0.05 3 0.15 2. Online market 0.05 4 0.20 3. money 0.07 4 0.28 4. Office Max 0.05 3 0.15 5. International Expansion Could Increase Staples' Profits 0.06 4 0.24 6. Extended Producer Responsibility EPR 0.03 2 0.06 7. High Margin Paper Products 0.06 2 0.12 8. Incorporation of recycled content gives an edge over and above its competitor in a society. 0.08 3 0.24 9. Better customer relationship will help to achieve more market share. 0.04 4 0.16 10. Expansion in business in Middle east 0.04 1 0.04   Threats Weight Rating Weighted Score 1. 1. Expansion planning in offerings by Staples may dilute focus on core competency 0.04 2 0.08 2. Rising Oil Price and commodities 0.04 3 0.12 3. 3. Changing govt policies and regulations on FDIs 0.08 1 0.08 4. Great fall in US Stock Market 0.04 2 0.08 5. Consistently decreasing growth in US GDP 0.04 4 0.16 6. Increasing rate of unemployment 0.05 4 0.20 7. Increase in Taxes 0.05 4 0.20 8. Intense competition in Market 0.04 3 0.12 9. Office product companies are late cycle plays 0.06 3 0.18 10. Competitors website is more user friendly 0.03 2 0.06   TOTALS 1.00   2.92
  10. 10. IFEIFE   Internal Factor Evaluation Matrix (IFE)         Strengths Weight Rating Weighted Score 1. Over 2,000 stores worldwide in 26 countries. 0.02 2 0.04 2. Sells office machines, promotional products, furniture, technology and business services both in stores and online. 0.03 2 0.06 3. Staples do business exclusively with enterprises in multiple European countries as Staples Advantage. 0.07 3 0.21 4. More than 1,00,000 employee worldwide. 0.05 4 0.20 5. Creative advertising and branding has enhanced its brand visibility 0.06 4 0.24 6. diversity 0.04 4 0.16 7. Innovative Culture Helps Staples 0.05 4 0.20 8. Size Advantages Strengthens Staples 0.07 2 0.14 9. Economies of Scale Reduce Staples Costs 0.07 1 0.07 10. Cost Advantages at Staples 0.09 3 0.27   Weakness Rating Weighted Score 1. Still hasn’t made penetration into the emerging economies 0.04 3 0.12 2. Strong competition means market share is less compared to global leaders 0.03 4 0.12 3. Company debt has remained relatively high. 0.06 2 0.12 4. Company stock dramatically under perform. 0.07 3 0.21 5. Uniqueness is missing 0.06 4 0.24 6. Distribution chain is virtually breakdown or abnormality. 0.04 4 0.16 7. High staff turnover increase staples cost 0.05 3 0.15 8. Weak Supply Chain Weakens Staples Potential Profits 0.01 2 0.02 9. 0.02 3 0.06 10. 0.07 2 0.14   TOTALS 1.00   2.93
  11. 11. • Market for office supplies was blooming. • Small and larger businesses were looking for easier access to stationary and other office products. • Rate of small business creation was increasing. • Not many major players other than office Depot and office Max. Industry and environment
  12. 12. • Major Competitors - Office Depot and Office Max. • Local drug stores • Supermarkets and stationary stores • Major discount chain such as Wal-Mart Competition
  13. 13. Advertising/PromotionsAdvertising/Promotions  ““That Was Easy” CampaignThat Was Easy” Campaign – Illustrates Staples long termIllustrates Staples long term strategy to truly buying officestrategy to truly buying office products easy.products easy.  Staples new Mail Mate shedder was cast in aStaples new Mail Mate shedder was cast in a supporting role in the Nov. 16supporting role in the Nov. 16thth episode of theepisode of the NBC sitcom “The Office.”NBC sitcom “The Office.”  More than a product placementMore than a product placement  Has been integrated into the showHas been integrated into the show  "This TiVo-proofs our advertising," said Staples"This TiVo-proofs our advertising," said Staples vice president Todd Peters.vice president Todd Peters.  Since people with video recorders areSince people with video recorders are becoming adept at skipping commercialsbecoming adept at skipping commercials

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