Merger of Office Depot and Office Max Introduction This paper will discuss the merger of Office Depot and Office Max. The paper will also talk about the advantages of combining the two companies amongst other things. Specifically discussed will be the following: Description of firms, incentives to consolidate, competitive environment within the industry, effect on consumers, market concentration, benefit to firms and benefit to society. This paper will conclude with a summary. Description of firms Office Depot was the number two office supply company in the united states prior to their mergers with office max. It gained its reputation by being a global supplier of office products and services. Office depot began operations out of Boca Raton, Florida, United States of America. In 2014 the company had a combined annual sales of approximately $11.2 …show more content…
Another incentive is the right sizing of the organization which reduces expenditures on salary and the number of employees needed to function at an optimal level. It reduces the number of competitors in the industry. Competitive Environment within the Industry The 4 major competitors of office depot/office max are: Walmart, Staples, Amazon and Essendant incorporated. Walmart has a share of the market, but Staples and Amazon are Office depot/Office max biggest competitors. Staples tried to buy office depot, but it didn’t work out. Amazon has become a new threat by making more than 1 billion dollars in sales, in the first year of business in year 2015. Effect on Consumers The merger of Office max and Office depot has had a positive impact on consumers. Due to economies of scale, prices have declined which has increased the purchasing power of consumers. Office depot/Office max, have a wider presence as a combined company making it more convenient for consumers to purchase products Market
Home Depot company offer a wide range of merchandise and services, and serve three primary customer groups: do-it-yourself customers, do-it-for-me customers and professional customers. A classic Home Depot store stocks approximately 40,000 to 50,000 product items, including variations in color and size. Major product groups include building materials, lumber plumbing, electrical and kitchen; hardware and seasonal, and paint, flooring and wall coverings. To balance the national brand name products it offers, the Company has formed strategic associations with vendor partners to market products under brand names that are only offered through The Home Depot. “As of fiscal year-end 2001, the Company offered products under more than 30 proprietary and other exclusive brands, including Thomasville kitchen and bathroom cabinets; RIDGID power tools; Behr Premium Plus paint; Mill's Pride cabinets; GE SmartWater water heaters, and Vigoro fertilizer.” ("The Home Depot", 2004)
Home Depot is currently the largest home improvement retailer in the world. Co-Founded by Bernie Marcus and Arthur blank in 1978 and later went public in 1981. (Exibit* - Stock Performance). Home Depot currently sells products in more than 2,200 stores in North America reaching out to customers both through brick and motor stores as well as its online stores.
I will start with the history of Staples. Myra Hart, Leo Kahn and Thomas G. Stemberg founded Staples in the late 1980s. The company opened its first store in Brighton, Massachusetts on May 1, 1986. Staples, Inc. is the country's largest operator of office supplies superstores, offering a vast selection of products at low prices, primarily to small business owners. Staples pioneered this concept in 1986 and grew rapidly after opening its first store in the Boston area. The company subsequently expanded to areas outside the Northeast; by the early 2000s, there were about 1,300 Staples outlets located both in major metropolitan areas and smaller markets in 45 states, the District of Columbia, and 10 Canadian provinces. In addition to the retail oper...
In the year of 2005, the companies eventually found a way to make it easier for the companies to combine without having any major issues or problems. Unfortunately, around the year of 20010 the merging com...
Home Depot operates in the home improvement retail industry that comprises of retailer that sell appliances, lumber, building material, kitten fittings and other home improvement products aimed at improving existing structures. Companies functioning in the home improvement industry buy products from retailer and manufacturer based all over the world, and then put those products for sale on the market to three types of buyers, generally characterized as: do-it-for-me, do-it-yourself, and professional customers. The home improvement retail industry is well established industry and is highly attractive and there is high level of price competition among the key players of the industry as the products lines are all the same.
Large players can offer competitive prices if they buy in bulk. Smaller players can differentiate themselves by offering niche products and superior customer delight at a premium price.
The purpose of this paper is to attempt to recompile information about the merger of two corporations; one of many taking places i...
Since the home improvement market is highly competitive, Lowe’s needs to apply the best strategies to deal with Home Depot’s rivalry. This rivalry is as a result of the identical nature of the products handles by the two companies. The company should structure its distribution framework to pull down costs as the firm adjusts to changes in demand. The company should set a 6-month budget for research and development projects. To outperform Home Depot, Lowe’s should seek to expand its in-store services as well as the international operations.
Albertson's main competitor is Wal-Mart. The biggest component in this rivalry is product cost and price. Because of their superior supply chain and extreme buying power, Wal-mart is able to sell at lower prices and obtain higher profit margins. Another area of competition between the companies is the location and services available. Due to the extended services Albertson's offers such as a butcher, baker, and gourmet coffee bars, they are able to outperform Wal-mart in urban areas. Other than the current contenders in this market, I don't feel that Albertson's has any major worries such as new entrants or other substitutes.
Content 1.Preface 2.Introduction 3.Problem definition 4.Summary 5.Conclusion 6. Chapter 1: External analysis of Home Depot Inc. 7. Chapter 2: Internal analysis of Home Depot Inc. 8. Chapter 3: Strategic forces. 9.
WALMART store inclusive is the largest retailer and the largest company in terms of revenue.
Wal -Marts' major competitors are the Kroger co. #2 in annual sales, Albertsons' Inc. #3, Safeway,Inc. #4, and Costco Wholesale Group #5. Now even though Wal- Mart is leading the way in total sales the #2 and #3 businesses lead in way with total # of stores. The Kroger Co. has 3,302 with Albertsons at 2,476 stores nationwide. Wal-Marts total sales for that year alone was beating its 2nd place competition alone by more than 80 billion dolla...
In the warehouse segment, Wal-Mart’s Sam’s Club competes harshly with Costco. Costco has fewer warehouses but greater sales and revenues. Costco customers also shop at Costco more frequently than Sam’s Club customers and, on average, spend more each visit as well. Costco’s dominance may be the result of better innovation. Costco offers luxury items and was the first to sell fresh meat and produce, and gasoline. This is important because innovation is a key factor in assessing competitors in an industry.
Home Depot has grown at a phenomenal rate over the last 36 years to become the largest do it yourself retailer in the United States. It’s solid business performance has allowed the company to post double digit growth rates over the last 36 years, and has never had a negative year of growth, even during the financial crisis of 2008-2009.
Home Depot was founded in 1978 by Bernie Marcus and Arthur Blank in Atlanta, Georgia. With their store, Marcus and Blank revolutionized the do-it-yourself home improvement market in the United States. Home Depot began as a very basic store, operated in a large, no-frills warehouse. Home Depot carries over 35,000 products, with national brand names along with the Home Depot brand. At the start, Home Depot was able to offer exceptional customer service with knowledgeable employees who could guide customers through home renovation projects. Since its opening, Home Depot has experienced incredible growth, and today is North America's second largest retailer, and the largest home improvement retailer. Internationally, Home Depot has expanded into Canada, Mexico, and is beginning to operate stores in China. Home Depot's competition includes Sears, Ace Hardware and Lowes (the main competitor).