Combing through his public statements since news of the merger's pending approval was first publicized, it may be possible to refine and improve the firm's future adaptations to such shifting market conditions.
In order to anticipate the multitude to probable threats posed by a merger between its two main competitors, Sargent and the executive management of Staples must engage in a proactive process of risk management. The likelihood of a combined Office Depot/OfficeMax entity slashing prices to force Staples into counterproductive economic strategies should be considered of paramount importance. Adjusting to the market conditions of an oligopoly, as imposed by the planned merger, will require a comprehensive risk management appraisal that includes the formulation of multiple contingencies. Accurately assessing the range of risks associated with an oligopoly will allow Staples to weather the proverbial storm, holding its fairly earned market share while weathering the inevitable storm of sales, promotions, and advertising blitzes aimed at dethroning the firm.
References
Baye, M.R. (2010). Managerial economics and business strategy. 7th ed. New York:
McGraw-Hill/Irwin.
Detar, J. (2013, March 06). Staples profit beats estimates, shares dip on outlook read more at investor's business daily: http://news.investors.com/business/030613-646944-staples-...
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