Strategic Plan for Staples, Inc.

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Table of Contents

Brief History of Staples
Mission and Vision Statements
Organizational Analysis
Environmental Analysis
Strategic Issues and Recommendations
Conclusion
References

Staples is one of the largest companies in the world in the field of operators of office supplies. The main Staples office is in Framingham, Massachusetts (“Our Story,” n.d.). The Staples company sells furniture, office products, and related technology to aid businesses in achieving their objectives. Office furniture, supplies, copy, print, cleaning products, IT equipment, promotional items, and other office products are among the company’s products. It also provides marketing services, design, installation services, facilities management, and space planning for its clients, allowing them to manage space in the most practical ways and become more productive, connected, and inspired.

Brief History of Staples

The founding of Staples has an exciting and unusual history connected with the name of Tom Stemberg. In 1985, the entrepreneur had to finish his business proposal for the Fourth of July but needed help with the typewriter. The man tried to find tape for his apparatus in various stationery stores but could not find anything in the neighborhood. This event triggered the opening of a stationery store, and ten months later, Tom opened the first office supermarket, now known as Staples (“Our Story,” n.d.). Office supplies were affordable for the general population, so they were affordable for all those in need, and it became a company thing.

Mission and Vision Statements

The company’s current business plan focuses on visionary management thinking, innovation, and scaled growth. However, this plan should be re-developed due to the possibilities of expanding the product range and digital sales and bringing a stronger Omni channel focus. The firm helps customers make more happen every day by enhancing their product selection and making buying and saving simpler than before. Through its initiatives, policies, and beliefs, Staples seeks to improve the lives of their employees, the communities in which they operate, and even the environment (“Staples mission, vision & values | comparably,” n.d.). Staples emphasizes ethical sourcing by requiring suppliers to adhere to the set labor and environmental rules. It aims to provide customers with value by combining environmentally friendly items with affordable prices, top-notch and cutting-edge brands, and outstanding customer service. Additionally, it has a particular program called Staple Soul that reflects its dedication to preserving the environment, moral principles, society, and diversity.

Organizational Analysis

The exhibition of omni- channel offerings is that Staples has shops in more than 3,865 locations around the world where it offers a wide range of products (office, chairs, etc.) Besides physical shops, the business also offers services on the website and in the app to provide users with the highest level of convenience. An indicator of sustainable development is the company’s control of a significant part of the market and buyers’ positive attitude toward the goods offered. The brand provides environmentally friendly products to customers through a program called “EcoEasy.”

The development of new fields exhibits the company strategy, which is to enter new markets and achieve success in this way. By expanding to new markets, the company has created new revenue streams and reduced exposure to business cycle risks in many regions (“Staples Inc., Swot & PESTLE ANALYSIS: SWOT & PESTLE,” 2023). The exhibition of customer loyalty initiatives focuses on customer satisfaction. The brand is a significant player in the commercial strategy of the Omnithe channel, allowing it to provide fast delivery. In addition to the speed of delivery, the business also regularly offers discounts to its customers and incentive schemes that retain loyalty.

The exhibition strengths of the company are the provision of additional printing, marketing, technological, financial, logistics, and office services. For example, after-sales brand service includes a simple and user-friendly shipping policy (“Staples Inc., Swot & PESTLE ANALYSIS: SWOT & PESTLE,” 2023). Staples also invests time and resources in upgrading the skills of its employees, thus creating a staff that is always ready to strive for more in their careers. The suppliers of raw materials for the brand are reliable, so it greatly facilitates the task of getting around any supply chain bottlenecks.

Staples faces stiff competition from large companies like Walmart and Office Max, demonstrating one of its weaknesses. Despite the excellent operational capabilities, due to the merger of OfficeMax and Office Depot and Amazon’s threat to its delivery operations, the company’s competitive advantage is reduced (“Staples SWOT Analysis – business marketing strategy,” 2022). In this case, Staples may try to capitalize on its reputation for producing higher-quality goods. However, the company has management problems, and the exhibition of it is lack of trained personnel to manage numerous branches. The company also strives to develop innovative technologies at work, but at the current pace does not have time to implement all the novelties, such as updating the website and application interface.

Continuing the theme of innovation, another weakness exhibition is backwardness in research and development, despite significant investments. Both Amazon and Walmart are constructing their incubators and developing their skills. Walmart, for example, has its research agency called Walmart Labs which makes investments in startups and small businesses. Thus, despite providing high-quality products, Staples needs to catch up in modern developments. Also, the bureaucracy of different governments in different countries may sometimes hinder establishing of new branches in these countries (Amason & Ward, 2020). This fact is the exhibition of the company’s weakness before the state policies of some foreign countries, where the business has to pay significant taxes.

Environmental Analysis

Any brand is seriously in danger from counterfeiting, a huge problem that exists in the market. Staples’ products are seriously threatened by imitating inferior, counterfeit goods, especially in developing and low-income countries (“Staples SWOT analysis – business marketing strategy,” 2022). It is among the most significant threats on the internet. Office supplies that aren’t authentic are becoming more prevalent and are presently on the market. With illegitimate vendors charging more for adverts and reducing genuine SEO efforts, marketing expenses are also increasing. This affects both the lifetime value of consumers and customer loyalty. Although Staples has developed a counterfeit detection pen that can spot fake office supplies, the threat of counterfeiting still exists.

Due to its international operations, Staples is vulnerable to currency fluctuations. It must deal with the unstable political environment in many markets. It might be challenging to predict the future profitability of a company like Staples. Depending on the exchange rate, a corporation that anticipates making a specific amount per year might see a significant decrease or rise. In many facets of foreign corporate operations, exchange rate fluctuations can directly influence the relative worth of expenditure or revenue (Amason & Ward, 2020).

Staples began selling software, office, and computer equipment in the early 1990s, attracting public interest. Then the buyers believed that the company was unique and could offer them hard-to-reach products at an affordable price. However, Staples quickly conquered competitors like Amazon, Walmart, Office Max, and Office Depot. All these companies also experienced rapid improvements and began to offer similar products to Staples but offered more favorable terms of delivery, which was an advantage for customers. These distinctive characteristics serve as inducements for customers to pick the business over competitors (EMBA pro, 2019). Therefore, Staples has to develop a more substantial point of differentiation since it is always vital for a company to update its customer experience.

Staples has a strong brand reputation, so it may take advantage of it to enter the service sector and grow into other product categories like furniture and home products. The company could provide services focused on maintaining and fixing the products they sell (“Staples SWOT analysis – business marketing strategy,” 2022). If the business follows through, it will be better positioned to control a more significant portion of the market, guaranteeing increased profits and client loyalty. Staples might broaden its appeal to more people and boost sales by diversifying into new product and service areas. Offering furniture and home items, for instance, may draw visitors looking for a one-stop shop for all of their household requirements.

Expanding into e-commerce and online sales might give Staples a new source of growth and income, given the rising trend of online shopping. The business can attract more customers and generate more revenue by doing this. As a result, the company can retain its loyal customers by providing value-driven products. Thanks to technological advancements, organizations may now automate and digitize various operations, such as record keeping (Hitt et al., 2019). Many businesses are gradually phasing out paper usage. Staples can invest in technology to improve document sharing and record keeping.

Staple’s growth will allow it to create new revenue streams, leading to outstanding performance in the more recent markets. With such a vast network of locations, Staples is well-versed in the market and can thus easily break into untapped niches. Another option for the company is to franchise the name “Staples” to other up-and-coming businesses, allowing them to receive a cut of their profits. The firm may accelerate its growth and boost efficiency by combining its retail and online offerings, raising investments, starting a multi-cost-saving strategy, and reorganizing its internal processes (Serova et al., 2019). If effectively applied, these strategies will provide Staples more room for expansion.

Strategic Issues and Recommendations

Based on the weaknesses, we can distinguish the company’s main problem, which is backwardness from modern market requirements in terms of innovation and personnel qualification. The provision of high-quality products can no longer be the main advantage of business, as the world aims to digitalize society. Staff should also be acquainted with trends in the world of technology, focusing on creating convenient applications for buyers, which will be updated regularly. Staples company is badly impacted by digitalization in two ways. The company’s primary office supply items are first slowly vanishing. The ongoing fall in paper use as workplaces convert to digital workflows is at the root of the downturn. Sales of other things like highlighters, pencils, staplers, and notepads also decrease as companies increasingly become paperless. Second, digitization has significantly boosted competition since it allows rivals like Amazon.com to sell more products for less money (Serova et al., 2019). People and storefronts are the main expenses for traditional retailers like Staples, but online competitors have fewer of both. As a result, Amazon may market comparable items for less money while maintaining its profit margin.

Market competition for office supplies is fierce for Staples. Market competitors like Office Depot, Amazon Business, and Walmart are all striving for market share in the fiercely competitive office supply market. It is challenging for Staples to stand out from the competition and hold onto its market position in light of the fierce competition (Mahoney, 2021). Amazon and other internet competitors pose a severe threat to traditional brick-and-mortar stores like Staples. Amazon is a well-liked alternative for customers due to its broad product range, competitive pricing, and flexible shipping choices. This makes it difficult for Staples to maintain its level of competitiveness and draw customers to its physical shops.

The demand for conventional office supplies like paper, pencils, and folders has significantly decreased with technological advancements. This development poses a dilemma for Staples, which has typically relied on selling these items to generate income. Paper file cabinets are gradually being replaced by digital storage. Today, physical letters are only utilized when a signature is necessary, with electronic communication accounting for most correspondence. The corporation may need to concentrate on entering new product categories that are more pertinent to today’s consumers if it wants to stay competitive (Mahoney, 2021). Thus, the main task of companies is to provide relevant and necessary products to their buyers.

To implement new technologies into the company’s operations, Staples created a new service that allows you to buy goods and receive delivery on the day of order. This application is called Staples Rush and is a breakthrough in business, facilitating its work and allowing it to focus on Omni channel in its commerce strategy (Hitt et al., 2019). These actions are made to compete with other giants, such as the leader in multi-channel purchases of Amazon, which can carry out rapid delivery of goods to its customers almost worldwide. Thus, Staples tries to develop mobile applications and websites to offer its customers the most convenient service.

Because the company controls a large market sector, it may take advantage of this opportunity to provide new product categories and services, increasing its revenue streams and helping it penetrate new markets. Staples might also reduce the danger of relying entirely on the office supplies sector, which can decline, by expanding into other retail areas. As a result, the firm may have new prospects for revenue expansion, and it will be less susceptible to changes in the market (Hitt et al., 2019). Staples might broaden its appeal to more people and boost sales by diversifying into new product and service sectors. To attract clients searching for a one-stop shop for all their household requirements, the firm may, for instance, sell furniture and home items.

Operations in international retail can be reorganized to reduce complexity and improve performance. The European market has seen underperformance from several retailers and shipping companies. This firm ought to think about closing them. To streamline service delivery, it is essential to create strategic collaborations with nearby foreign suppliers of office supplies (Mahoney, 2021). One significant issue impeding the performance of its international locations is a lack of experience in other markets. By making it accessible to a more extensive client base, strategic alliances between Staples and overseas businesses will address this issue. However, it should make an effort to consistently provide high-quality goods and services in all overseas outlets if it wants to win the loyalty of both new and existing customers. Rebranding its retail locations will go a long way toward assisting this business in realizing its goal of becoming a recognized global brand.

Conclusion

For many years, Staples Inc. has been in the office supplies industry. It offers technology solutions in addition to selling a variety of office supplies. To increase its competitiveness, this company’s management has launched a push to expand its product ranges. However, work must be done before it can genuinely assert its impact. To ensure the timely delivery of goods, the supply chain should be improved. The data examined supports the necessity for this company to focus more on international markets to improve performance. To expand its impact, Staples should search for overseas areas with less competition. This company will increase its market share by forming strategic connections with local businesses in foreign countries. Additionally, it will lower operating expenses because Staples will only need to pay personnel or do in-depth market research.

References

Amason, A. C., & Ward, A. (2020). Organizational strengths and weaknesses. Strategic Management, 118–147. Web.

Berman, B., & Thelen, S. (2018). Planning and implementing an effective omnichannel marketing program. International Journal of Retail & Distribution Management, 46(7), 598–614. Web.

EMBA Pro. (2019). MBA SWOT : Management levels at Staples (A): Company and organization SWOT Analysis & matrix – Strengths, weaknesses, opportunities & threats. EMBA Pro for Executive MBA Professionals. Web.

Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2019). Strategic Management Concepts and cases competitiveness and globalization. Cengage.

Mahoney, J. (2021). Identifying, analysing, and managing organisational issues. The Strategic Communication Imperative, 83–113. Web.

Our story. Our Story | About Staples.com®. (n.d.). Web.

Serova, E. G., Vorobyev, P. F., & Fainstein, E. M. (2019). Quantitative SWOT analysis and its application to strategic management: The case of chain restaurant business. Vestnik of Saint Petersburg University. Management, 18(4), 531–562. Web.

Staples Inc.. Swot & PESTLE ANALYSIS: SWOT & PESTLE. SWOT & PESTLE.com. (2023). Web.

Staples mission, vision & values | comparably. (n.d.). Web.

Staples SWOT analysis – business marketing strategy. Business Marketing Strategy – Brand Marketing Strategy And Analysis. (2022). Web.

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