Businessmodel of Staples

Customer Segments

Staples has a segmented market business model, with customer groups that have slightly different needs. The company targets its offerings at consumers, home offices, and small businesses.

Value Proposition

Staples offers four primary value propositions: accessibility, innovation, cost reduction, and brand/status.

The company creates accessibility by providing a wide variety of options. It has acquired numerous other firms since its founding, including Quill Corporation, Office World, Thrive Networks, American Identity, Corporate Press, and PNI Digital Media. This strategy has enabled it to greatly diversify its portfolio and expand its offerings and capabilities.

The company offers convenience by making life simpler for customers. It enables customers to buy products online and then pick them up in-store within less than an hour. Also, its website allows users to find what they need quickly using the “Order by Item” feature and restock their favorite products using the “Easy Reorder” feature.

The company embraces innovation as part of its culture. Its creative efforts include:

• Giving customers the ability to speak with sales and customer service employees for shopping help and post-sales support through Facebook Messenger. Customers can also receive tailored updates such as order confirmation notifications.
• Starting a partnership with WorkBar through which it provides co-working facilities for customers within select Staples locations. Users can collaborate and network with other members.
• Offering the latest in 3D printing technology, tools and services, enabling customers to print their own designs at work, at home, or in stores.
• Starting a contest with Fundable enabling consumers to pitch their crowdfunded products to Staples, with the winners’ products obtaining a place in Staples stores and online channels.
• Powering the app Makr, which enables customers to design their own marketing collateral (logos, etc.) and have it printed and delivered to their doors. The company reduces costs through a variety of options. Its website offers “Daily Deals”, a “Weekly Ad” with discounts, and online coupons. It also maintains the Staples Rewards program through which customers can get 5% back in rewards and free shipping on orders costing over $14.99. Moreover, it has a Price Match Guarantee through which it matches the prices of any competitor.

The company has established a powerful brand due to its success. It is the largest supplier of office products and services in the world, with operations in North and South America, Europe, Asia, Australia, and New Zealand. It maintains over 1,907 stores and provides over 45,000 office-related products as of January 2016.

Channels

Staples’ main channel is its website. It also sells its products through its retail stores and through a contract workforce. The company promotes its offerings through its social media pages and TV/radio/newspaper/online advertising.

Customer Relationships

Staples’ customer relationship is primarily of a self-service nature. Customers utilize its products and services while having limited interaction with employees. The company’s website provides answers to frequently asked questions. That said, there is a personal assistance component in the form of phone and e-mail support and customer support from in-store personnel.

Key Activities

Staples’ business model entails distributing products and delivering related services to customers.

Key Partners

Staples’ key partners are the third parties that provide it with the merchandise it sells through a distribution network. It also maintains an affiliate program through which it invites others to promote it through their platforms (websites, mobile apps, etc.) in exchange for a commission.

Key Resources

Staples’ main resources are its physical resources. These include its network of over 1,907 retail stores in 46 U.S. states and other countries worldwide, and its set of 104 distribution and fulfillment centers in 28 states in the United States and other countries worldwide. It also relies heavily on human resources in the form of store associates, sales personnel, and customer service staff.

Cost Structure

Staples has a cost-driven structure, aiming to minimize expenses through significant automation and low-price value propositions. Its biggest cost driver is cost of goods sold, a variable expense. Other major drivers are in the areas of sales/marketing and administration, both fixed costs.

Revenue Streams

Staples has two revenue streams: revenues it generates from the sale of products and revenues it generates from the sale of services to its customers.