Table of Content

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Executive Summary............................................................................................ Background ● ● Development and Growth....................................................................... Current Information.................................................................................

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4 7 11 15 17 19 24 30 31

SWOT Analysis.................................................................................................... PEST Analysis..................................................................................................... Corporate Level Strategy.................................................................................... Business Level
Tom Stemberg hired a former teaching assistant from Harvard to do basic market research on the industry and validate the market at a cost of $20,000.The research revealed that not only was he entering a $100 billion market but the market was expanding at 15% per year. Formulating the idea was next on Stemberg agenda, he sought information on manufacturers and wholesalers and ways he could capitalize on genuine discounts. Next he assembled a team of people he knew who was experienced in various areas of management and whom he convinced to give up secure jobs, high salaries and annual bonuses for a 2% share in the company. Refining the concept, the team secured a $4.5 million from Bain Venture Capital and other investors, the team also convinced manufacturers to buy into the idea to supply them and circumvent distributors to they agreed.

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The quest for suitable location was challenging due high price and location size, however Staples settled for a location within a site of a housing project where past retailers had failed.

Development and Growth Business started slow and the $42 million three year target seemed like a myth, Todd Krasnow who was in charge of marketing tried desperately to bribe customers to get them in the store even sending $25 to thirty five office managers inviting them shop and give feedback, business increased and by 1987 Staples stores increased to 3 with a projection of twenty by the end of 1988, mid