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Staples Case Critique

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Staples Case Analysis Critique
1. What is Staple’s competitive advantage in the online marketplace? The critique team agrees that Staples.com’s competitive advantage in the online marketplace is Staples’ brand name. The analysis team correctly points out that 75% of the market is being served by generic retailers, so that Staples.com can use Staples’ brand name to better reach into that portion of the market. Staples has an established customer network under its brand name from which Staples.com can gain wallet share. Staples.com also has Staples’ customer demand information and consumer feedback databases. The critique team would add that the “click and mortar” can use Staples’ established distribution and customer service systems that purely online competitors will be unable to replicate. In this way, Staples straddles the “internet showroom” problem by showing products in-store and selling online, or vice-versa.
2. Do you agree with Staples.com’s growth strategy and timing? Why? Are they following a “Get Big Fast” strategy? Would you pursue wallet share or market share as your first priority? Or like Staples.com, would you pursue both with vigor? The analysis team is correct that Staples.com is striking while the iron is hot. The market is already significant at $1.3 billion, and is expect to be approximately sixty times as much in four years. Service providers for small businesses are not big-name enterprises, so adding service capabilities will allow expansion under Staples’ brand name. The critique team would also add that the timing is favorable for capital inputs to Staples.com. Investors are clamoring to spend money on internet stocks, so the capital costs of expansion should remain relatively low. Further, projections show that this new business unit should have an operating margin comparable to Staples in five years.
The analysis team is

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