This website uses cookies to ensure you have the best experience. Learn more

Staples Essay

1538 words - 7 pages

Key nonmarket issues - Whether to allow Staples and Office Depot to merge on the basis of antitrust concerns.
Interests - The three office supply superstores, Consumers, Competitors like other Superstores (e.g. Walmart, etc.), Manufactures, Suppliers, Labor organizations.
Institutions - Courts, FTC, DOJ, Congress.
Information - Asymmetric (FTC has done a lot of research and know quiet a lot to support the antitrust case but Staples and Office depot will know more about the relevant product market, Pricing etc.),
Incomplete (e.g. Whether it was possible to pass through the improvements in efficiencies to the consumers and if yes how much), Contested (Whether the definition of the ...view middle of the document...

Also the internal documents obtained from the companies in which the companies referred to the competition as the office superstore industry and the distinctive features like appearance variety of items etc. offered at a store helped define the market as office superstore. With the relevant market now constrained to office supply stores only, FTC was able to prove that the concentration figures were very high and the barriers to entry were high making it impossible to reduce the anticompetitive nature of the industry in future. So the courts concluded that the FTC had shown that they had a strong case and were likely to succeed on its merit. Also, post merger the companies decided to consolidate the warehouses, close 40-70 stores, renegotiating contracts with the manufactures and consolidate management, which will ultimately result in substantial layoffs. The private equity at stake here was the loss to the Office Depot shareholders but the court thought the loss of this private equity does not justify the denial of the preliminary injunction as the public equity clearly supported it.

2) Was the courts analysis of the pricing data appropriate for determining the likely effects of the merger?
The courts analysis to find the effects of the merger had some serious flaws.
Firstly, these studies did not take in to consideration other factors affecting prices, like the size and nature of the regional market, its population or the presence of other discount retailers that sell office supplies. It would have been more effective to see what happened to prices when a second office supply superstore chain entered a one office supply superstore area, thus turning the one office supply superstore area into a two office supply superstore area. Because in this case the other economic factors affecting pricing would generally be similar before and after the entry of the second chain, this approach holds those other factors constant. Secondly, the price comparisons were a snapshot of price differences at one point in time and again they pooled all Staples stores together into a single model instead of having separate models for different parts of the country.
Lastly, the FTC changed the definition of the relevant market from the total market for office supplies to the market served only by the office-supply superstores. Staples and Office Depot together sell only about 5.5 percent of total office supplies. The FTC’s restricted definition of the relevant market ignores reality by assuming that the office-supply superstores face no effective competition from the many other types of stores and online retailers selling office supplies. As the first paragraph in the case mentions that Staples and Office Depot grew and prospered offering low prices to its price-sensitive customers. And they will prefer to go to the store that gives better prices.

3) Could Staples and Office Depot be reasonably expected to pass two-third of any cost efficiencies through to...

Other Papers Like Staples

How Has Life Changed Since The 1800's

250 words - 1 page . In comparison to todays day and age, this has changed immensely due to the frequent growth of fruit and vegetables and the consumption rate of starchy staples have decreased. During this time, tea and coffee was considered a luxury and therefor allowing beer to becomes the common drink that was served to all ages and with most meals. Blainey states that “In England, home brewed beer, drunk at nearly every meal, was almost as essential as bread in the daily diet. Children drank it each day. (Blainey, 2000 p. 411).

Define Difference And Provide Two Examples Of This On City Road Cardiff

472 words - 2 pages diversity of the community is catered for by the street and as time passes, the street changes (Blakely, Staples 2014). (238 words) References: Blakely G Staples M. (2014) Understanding social lives chapter 1,Milton Keynes, Open University. The Open University (October 4 2015)'The life and times of the street' Part 1 [video],DD102

Wrting

262 words - 2 pages Staples, supplement) For Wednesday (2/26): * *Write a thesis statement and opening paragraph for a textual analysis of one of the above eight works, in preparation for your first analysis paper. (Extra credit for e-mailing before Tuesday, 8:00 PM.) For Monday (3/3): * *Textual analysis: two "body" paragraph(s) due. (Extra credit for e-mailing before Sunday, 8:00 PM.) For Wednesday (3/5): * *Completed draft of your essay (Textual

Dell Environmental Scan

319 words - 2 pages . Promotion plays a valid role towards Dell because Dell promotes its products through other companies such as Best Buy, Wal-Mart, Staples, Carrefour, and GOME. For Example, Dell is known for its fame and it is a worldwide information technology company. Dell

Equal Treatment

1490 words - 6 pages opportunity to even be considered for the job. In his article, A fair shot at a job, Brent Staples states, “The United States Equal Employment Opportunity Commission ruled twenty-five years ago that it was illegal under the Civil Rights Act for companies to exclude people from employment based on arrest or conviction records—unless there was a compelling business reason”(10)(L). According to a startling 2011 report from the National Employment Law

Wireless Technology

532 words - 3 pages Wireless Technology Ripton Powell BIS/221 08/17/15 Martin Mueller Wireless Technology in the Workplace Wireless technology has become one of the fastest rising staples used in the workplace today. It has impacted the way we all function in the workplace in many different aspects, some positive and some negative. Online, there are articles by Aaron Charles of Demand Media, covering a few different aspects of the effects that wireless

Food Sanitation

737 words - 3 pages basic staples, and outbreaks have been traced to restaurants, roadside food stands and many other locations where food is sold or served. Even institutions such as churches and community bake sales are not exempt from food safety issues, making it important for people to remember to use handling precautions every time they come into contact with food. Information about food safety is available from many government agencies and health organizations

Sports Marketing

758 words - 4 pages . The Staples Center is strategically located in downtown Los Angeles, across from the Convention Center and the University of Southern California. This location allows consumers to travel from the surrounding areas to participate in a Lakers game. The amount of money that is being spent to promote the Lakers never seems to end. Every where you turn in Southern California you will see advertising for the Lakers; billboards, busses and bus stops

1920's

864 words - 4 pages Kyle Carey 1920s Research paper Mrs. Staples March 17, 2015 The 1920s was a time of prosperity and economic growth. It was a time right after the end of WW1 which was a factor in the immigration controversy during this time period. There was a large amount of controversy on immigration in the 1920s, many of it because of WW1 the thought of our enemies living in our own country scared us. Although there were some negative things that

Peest Analysis

801 words - 4 pages Tesco will need to implement. iv) Technological forces Technological forces can be seen to likely impact Tesco through the development of remote shopping and online retailing. In South Korea Tesco launched virtual stores across a range of areas such as subway stations (Business2Community, 2014). Interactive walls display photos of common grocery staples. Using smartphones, shoppers can buy products by photographing QR codes printed on the

Generic Products Vs Brand Name

1103 words - 5 pages away for something you use every day. And since the brand-name versions are rarely on sale or have manufacturer's coupons, generic is the best way to go. Gasoline.Just like pantry staples and other generics, buying "off-brand" gas gets your car essentially the same gas as name-brand stations. The price difference can be about 20 cents a gallon. Some off-brand stations often get their gas from the same tank trucks that deliver to the brand-name

Related Essays

Test Essay

1254 words - 6 pages The conference room at the Staples headquarters in Framingham had 33 associates, two coffee jars and three white boards anticipation of a developing strategic ideas around corporate messaging and desktop engineering. To the left was a poster of the chronological history of how Staples evolved from Tom Stemburg in 1986 to Ron Sargent. The other end of the conference room had a poster with the words “Together Everyone Achieves More” and

Idk What To Call It Essay

359 words - 2 pages QUESTIONS ON “BLACK MEN AND PUBLIC SPACE” THE FACTS 1. What does Staples mean in paragraph 2 by “the ability to alter public space?” 2. What does he learn from his encounter with a white woman as recalled in paragraphs 1 and 2? 3. What other anecdotes does Staples use to illustrate the problem of “black men and public space?” 4. What is the essay’s thesis? 5. What “truths” does the author describe in

Corporate Fraud A Spacer Evaluation Essay

2223 words - 9 pages Midterm Exam Option #2 – A SPACER General Evaluation Corporate Fraud most likely Scenario The vision of STAPLES Office Solutions, Inc., a Business company, is to be the leader in providing innovative products and services that enable our customers to manage document workflow and increase efficiency. To facilitate this goal management is responsible for establishing and maintaining an adequate system of internal controls to provide reasonable

A Brothers Murder Essay

403 words - 2 pages Yesica Velez Eng A -3.31.11- In “A Brother’s Murder”, written by Brent Staples, the author narrates about how the life around her, growing up in Chicago, was centered around people committing murders. The author tells us about several cases where men in her childhood took extreme action and decided to shoot somebody for insignificant reasons. The author felt there was no life living around a life like this, and went to college