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Office supply store: Use Porter's competitive forces model; consider e-commerce

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You are the owner of an independent office supply store in a large town that is quite isolated. Describe the various forces facing your business and how you might combat them.

You may want to use Porter's competitive forces model to help organize your answer. How do you see the Internet impacting your business? Is it likely, on the whole, to be more beneficial or harmful? Explain. Should you consider developing your own website and engaging in e-commerce?

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I am the owner of an independent office supply store in the large town that is quite isolated. Our company is following Porter's Competitive Strategies of Cost Leadership and Product Differentiation. Product differentiation is necessary to attract maximum number of customers and low costs we need to make customers buy our office supplies.

I chose Porter's five-force model to evaluate the market for my store.

1. Threat of intense segment rivalry:
The office supply market is not new. The competition on this market is much more intensive than in, for example, car dealers market. There are 2 main competitors on this market that have branched all over United States: Office Depot, Office Max and Staples. At ...

Solution Summary

The 467 word solution uses the Porter model to effectively analyze the independent office supply store issues.

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The solution addresses:

1) Explain the nature of competitiveness according to Porter and his five forces model. Explain each component in detail.
2) What are the major different between US and Multinational operation with regard to their affect on strategic management?
3) Define and explain value chain analysis (VCA). What role does benchmarking play in VCA analysis?
4) E-commerce and globalization are external changes that are transforming business and society. Explain these concepts and provide 2 examples which support this statement.
5) Explain the advantages and disadvantages of outsourcing and provide example of companies that use outsourcing as a strategic tool.

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