Staples Competition
Now Viewing Staples's competition in: Office Supply and Paper Distribution (primary)
Call Preparation Questions
Customers, Marketing, Pricing, Competition
How large a territory does the company serve? - Warehouses can usually distribute efficiently within a 400-mile radius.
How many superstores (Office Depot, Staples, etc.) are in the area? - Small retailers are increasingly being squeezed by superstore chains, which undercut their prices.
How many customers does the company have? - United Stationers has 20,000.
What types of companies are its customers? - Many wholesalers service different market segments, such as resellers, contract customers, big non-contract customers, and small companies.
Does the company have annual contracts with customers? -
What are typical contract terms? -
How does the company find new customers? - New customers are generally solicited by an internal sales force.
How do customers place orders? - Most companies rely heavily on catalogs and take orders either via telephone or electronically.
How many catalogs does the company mail in a typical year? - Large suppliers may send hundreds of millions.
How is the distributor promoting school products? - Trendy-looking school products are helping retailers build a school products' business.
Competitive Landscape
Demand is closely tied to the level of business activity. The profitability of individual companies depends on merchandising and an efficient delivery system. Big companies have economies of scale in distribution because they can supply a wide range of products to the same customer. Small companies can compete successfully by distributing specialty products or providing superior customer service.
Full Industry Overview For Office Supply and Paper Distribution
Business Challenges
CRITICAL ISSUES
Demand Linked to Cyclical Business Activity - Demand for office and paper supplies depends strongly on the level of business activity. Demand may grow sharply as businesses stock new offices, but drops when economic activity slows. During the early 2000s recession, wholesale trade in paper and paper products fell 7 percent.
Low Profit Margins - With industry gross margins typically around 20 percent of sales, paper distributors must operate highly efficient distribution systems. Price competition is very strong. Despite attempts to differentiate themselves by providing faster service, most distributors have no special advantage over competitors, leaving price the main source of competition.
Industries Where Staples Competes
- Retail
- Office Products Retail & Distribution(primary)
- Computer & Software Retail
- Business Services
- Advertising & Marketing
- Commercial Printing
