Staples, which is a chain store in the United States, focuses on providing office supplies, furniture, print and copy services, technology, ink for printers, snacks and coffee etc. the major environmental forces that have created an opportunity for Staples are ease in the market, consumers, and change of technology. Ease in the market can be described with the help of a fact that there were not many competitors at the time staples made an entry into the market, market conditions were favorable, which presented an ease for the company to conduct its operations in an effectual manner. The company made consumers by providing the products in which latest technology is used, and try its best to educate those who were not familiar with the products in order to make them capable of completing their work in a timely and effectual manner. Further, change in technology has also paved the way to creation of an opportunity for Staples in a way that it becomes capable of ensuring innovation in order to facilitate customers in the best possible manner. Innovation, however, leads to creation of new type of chaos, and provide many opportunities to companies for ensuring growth (Quinn, 1985).
In recent years, the purchasing power of Staple’s target market has changed. This is because the company is facilitating customers in the best possible manner. Consumers started considering service as an important element of purchase. The return rate of products of the company, however, decreased. The company has provided convenience service by ensuring expansion of its presence in other places. However, customers like to select that service that is easy to access. Staples has focused on providing an easy access to customers. it also provided value to customers by targeting their particular needs. Further, the purchasing power of company’s target market also changed because of ensuring good customer relationship. The company is, however, ensuring customer satisfaction by provision of trustworthy, friendly, and efficient service. The company is focusing on customer-need oriented service, which is allowing the company to ensure loyalty of customers, as a result of which purchasing power of company has changed.
Consumers give more importance to friendliness, guidance in simple words, and punctuality from service providers instead of reading the manuals that are provided with the products (Prasad, 2009). Most of the times, consumers like to buy new products, but they are not familiar with the product, and do not know how to operate the product. The environmental forces that exert their influence on Staples in future are as follows.
Social forces
Economic Factors
Staples is a leading and a fastest growing retailer, so it can ensure provision of jobs, which is beneficial for reducing the level of unemployment in the country. However, recession exerts negative influence on the performance of company by decreasing its profit margins. Recession can, however, decrease purchasing power of consumers. (Pride, Hughes & Kapoor, 2009). But, as a matter of fact, offices still continue to buy equipments because of necessity of use. Further, increase in taxes such as rise in Value Added Tax also affects profits of the company, which exerts negative influence on its operations.
Technological factors
The advancement in technology paves the way to creation of many critical problems for businesses. In order to cope with the problems, and for provision of best services to the customers, Staples has introduced self checkout machines. Because of these machines, customers do not have to make queue, and they can save their time. The company is, however, also employing Radio Frequency Identification Device or RFID so that it can ensure efficient supply chain, and this technology has benefitted supply chain of the company. The company is, however, also using advance machines in order to produce its brands for providing quality products to its customers.
Competitive Factors
Trends are indicative of the fact that competition encourages good ideas, and also allow bringing improvements in products and services in order to allow the company to distinguish itself from the competitors. The company is having dominating position in the market because it is providing and manufacturing variety of accessories associated with office. These accessories are not provided and manufactured by competitors. Furthermore, the switching cost for the company is very high as a result of which company is maintaining strong position in the marketplace.
Regulatory Forces
The company is complying with rules and regulations, and is supplying the equipments by keeping rules, laws and regulations into consideration. The company also strictly follows all the regulations linked with environment, and is ensuring promotion of environmental education. The company is , however, also strictly following police rules and regulations about selling of scissors, knives, and glues that should not be sold to children having minor age or age below 21 years.
The differentiation strategy that encourages target market of Staples to choose the company over its competitors is to ensure social networking such as via Facebook, Linkedin, and Twitter. The company should engage with the online consumers in order to determine and respond to the needs of consumers in a timely manner. It can ensure growth of business by online marketing campaign such as on YouTube, and should ensure charitable marketing in order to bring change in behaviors of consumers. Further, the company should secure customer trust and loyalty in order to meet future challenges. It should adopt the methods that satisfy customers, and should employee trained personnel in order to assist customers in the best possible manner.
References
Quinn, J.B. (1985). Managing Innovation: Controlled Chaos. Harvard Business Review, 63(3), 73-84
Prasad, V. (2009). Consumer Behaviour. Gyan Publishing House, New Delhi
Pride, W., Hughes, R., & Kapoor, J. (2009). Business. Nelson Education Limited, Canada
