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SWOT Analysis of Staples Inc

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SWOT Analysis of Staples Inc: The Company brief

A SWOT analysis of Staples Inc. presents vital insights into this company, including what has enabled this company to reach its current success level. SWOT analysis can be defined as a tool for strategic planning that is used in evaluating the Strengths, Weaknesses, Opportunities and Threats that a business venture or project involves. Performing this analysis entails specifying the project’s or business venture’s objective as well as identifying the external and internal factors that are unfavorable and favorable to the achievement of the specified objective. Before any venture, it is necessary that the management of Staples Inc. performs a SWOT analysis.

Staples Inc was established in 1985 and it was at first a small store, but now it has about 2281 retail stores globally. It offers services and products that meet business customers as well as consumer needs. Its products include office machines, furniture, promotional products, as well as business and technology services among others. The company has experienced a tremendous growth over the years.

SWOT analysis of Staples Inc: Strengths

Popularity

This company has a strong foundation globally. It is famous worldwide and this is its major strength. Its commodities are recognized by customers as superior quality products and they rely on them comfortably. The popularity and confidence that people have in its products has enabled Staples to control a large market share globally.

Well-established infrastructure

The stores of this company are located in densely populated and preferable locations. This gives the firm location benefit. It has about 125 warehouses where it stores its products.

Quality

Staples Inc is very careful in checking the raw materials that are used in manufacturing its products. This has enabled the company to ensure customers’ satisfaction. With its large size, the company enjoys economies of scale in terms of distribution, risk bearing, financial economies and marketing economies among others.

SWOT analysis of Staples Inc: Weaknesses

High payment expenses

Staples Inc. has over 9000 employees globally. This leads to high cost of paying employee turnover. As such, the earnings and profits per share are minimized. Due to this high cost of paying employees, the company is left with little amount of money to reinvest. This has led to restricted growth of this company over the years.

Breakdown in the distribution chain

There is a virtual breakdown in the distribution chain of this company. This shows that Staples Inc does not have a strong supply chain as it ought to have. As such, the company loses potential profits due to improper organization and mid-way losses.

SWOT analysis of Staples Inc: Opportunities

Expansion into emerging markets

Currently, Staples Inc has coverage of 26 Western countries only. This implies that it can venture into the emerging markets like China and India.

International expansion

By expanding its operations to the international markets, Staples Inc will maximize its profits.

Enhance customer services

This company can establish a proper customer service department. This will ensure customer satisfaction and convince them to purchase more products from it.

Diversification

Staples Inc can diversify its operations to cater for the needs of more customers.

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SWOT analysis of Staples Inc: Threats

Competition

This company is facing stiff competition from other suppliers of office supplies. Competitors like the Office Max will affect the current status of this company.

Internet

The current world is increasingly becoming internet dominated. This is likely to decrease manual work leading to a decline in the demand for office supplies which Staples deals on.

Why SWOT analysis of Staples Inc is important

Staples SWOT analysis is an important part of its process of corporate planning. It is after this analysis that the company can set operational and financial goals and formulate strategies that will lead to their accomplishment. By performing this analysis, the company will be able to utilize resources more efficiently, improve operations, discover new opportunities, deal with risks and occupy a competitive position in the market.

SWOT analysis of Staples Inc: References Used

http://www.bloomberg.com/apps/news?pid=conewsstory&tkr=STP:GR&sid=aI1A0Shu0r1k

http://www.google.com/finance?cid=538642

http://www.managementparadise.com/forums/principles-management-p-o-m/208592-swot-analysis-staples-inc.html

http://smallbusiness.chron.com/perform-swot-analysis-5050.html

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