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Free Term
Paper - Office Supply Industry Analysis
Office supply Industry shares the
major proportion in over all in the global economy. It contains
each and every product use in the office directly and for its
assistance. Writing paper, pen, glues, printer paper, ink
cartridges, office furniture, all types of pins, stationary and
other products related to office use.
Industry's Dominant Economic Features
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This industry has so many dominant area which are given below:
Size
100s of countries, 1000s of cities, billions of shops/offices
shows the size of this Industry in a single line.
The size of the industry is unbelievably large and immense,
there are 1000s of opportunities exists in it, its up to us how
we can take benefit from it. Though there is immense competition
but every one has chance and the market is open for every one,
but depends upon your skills, abilities and analysis, if right
card played at right time then you will certainly reach the
desired result. Office supplies are used in every area of
business and in all continents of the world, though paper work
is reduced by computer machines at large scale in developed
countries like United States of America, England, Canada,
France, Germany etc.
Third world countries like Pakistan, India, Bangladesh, Srilanka
etc. are still used the great amount of paper work. Office
supply industry is not all about paper work but its large
portion deals with it. If you move towards Africa,
majority of the African countries are also lies in third world
countries and are bound to use paper immensely. If we talk about
use of paper in western countries is still quite immense, now
they use more paper not for manual writing that much but
enormously for print outs of computer, here they use ink
cartridges at large scale. After shifting manual work in
to computer, we cannot eliminate paper work from the office and
nobody can deny that fact. When some one goes to any shop or in
office and purchase or passes the order from there, they might
be using PC for there own record but they should give you the
receipt of it either computerized or manual. I give the example
of paper work use in offices / shops, you can easily imagine how
many opportunities lie only in paper and its related products
and how big the market size.
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If we look towards office furniture area you can observe that
this area has also remarkably large as well. Office furniture is
also very essential part of office and without it, office is
incomplete and even it’s a need. One of the main consumption
area furniture is schools, colleges and universities. The other
important thing in office supplies is stationary item like
different types of pins, glues, pens, ink even ink cartridges
etc. are mostly and more commonly use everywhere in the world.
India and Pakistan are one of the big market related to paper
work because they are not developed and doing lot of work like
record keeping done over paper they record these things manually
where as developed countries use databases and other software
for this purpose.
Direct or Indirectly linked Industries with Office Supply
Industries
There are so many other Industries are linked with this, either
directly or indirectly, few of those are limestone industry,
this is use in chalks, carbon is use for carbon papers, other
chemicals use in markers and in colors, wood is also use in
pencil making and its inner portion is made of carbon, plastic
is use in tapes, paper is also use in some tapes, use of plastic
in pen, chairs can be made by wood, steel, iron, plastic foam
can be use in it, it can be fixed by using nails and screws,
paint is also use on it usually, if wooden then glue is used to
fix them, cloth Industry can use for cushion covers of the
furniture and for curtains, calculator manufacturer are also
contributing in it, transportation Industry can also play very
vital role in it etc. These facts can also tells us that how
many opportunities available in this Industry when dealing with
furniture and fixture.
Competitors
No business in this world exists where competitor does not
exist. As much the market or Industry is large as much the
competition is there. The countries like Pakistan and India
though they belong to third world countries, but they have lot
of competition. The reason of giving this example is that it
does not matter the country is developed or developing the
competition is cutthroat in both type countries. The main
difference between them is that developed countries are using
latest technologies, equipment, ideas in designing, at the time
placing orders, in distribution etc. of office supplies where as
developing countries are mostly using the old system for this
similarly like in other Industries.
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One thing which should have to be improve especially and that is
the care of nature means in wild and cutthroat competition we
forget the existence of nature particularly they forget this and
start cutting trees at large scale using authorize and
unauthorized sources and do not give attention towards the
growth of trees. They cut down these trees for the manufacturing
of furniture, paper, and for other fixtures and other products.
Southeastern countries facing major problem regarding competitor
there major competing country is China. China are almost
captured all the market especially in all types of pins
using in offices and some of other products as well.
In United States of America and other Western Countries there
are 1000s of competitor in the office supplies industry. They
are striving to get the best result and dominate in the industry
by inventing new ideas and using latest technology with
providing supreme services. Few of the company are trend setter
there same as in other industry few companies are known as
trend setters. Some company are made niche in office supply
industry.
Competitive Edge
The biggest difference in .Group offering a value-added dealer
model, more to the table than simply aggregating purchasing
volume. They bring technology, catalogs and merchandising,
dealer development and training, and a whole lot more and also
bring what is probably the most professional staff of any dealer
group to the equation.
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Group has been studying distribution for the last 10 years.
Years ago the organization was in the distribution business with
a couple of key vendors. The Industry got the best management
talent which are running. group and that’s a big plus.
Cutthroat Competition
In This cutthroat environment, everybody was offering next-day
delivery. They were going to market using a price model, trying
to undercut the other guy on prices for the most highly visible
office supply items and hope to make it up on the mix. They were
also broadening their product offerings, trying to be all things
to all people and getting into new areas like printing,
furniture, and coffee. The key was, of course, they were all
selling service more than anything else.
Trends
In this Industry service still matters and that relationships
are still key. If you set the bar higher, customers will hold
you to a higher standard. If you miss a one- or two-hour
delivery today, customers will be madder than if you missed a
next-day delivery. The companies like Hewlett Packard, Epson,
Canon, Xerox are the leading companies providing cartridges for
printers.
Growth Rate
The growth rate in this Industry is quite high, Industry is
continuously increasing, so that its growth rate. This is the
Industry of Billions of dollar and billions of dollars are also
ready to come in the market on behalf of it.
Population is also playing a vital role in its growth, 6 Billion
people mark we already crossed and still the population of world
is increasing with an immense speed particularly in the third
world region. The literacy rate is also improving so that it can
also need the office stuff. In very rear regions its growth is
decreasing because of poor economy, low literacy and the country
facing some king of external problem like war, these are the
regions where growth stops or start declining and that sort of
countries are very rear and even you can count on your
fingers.The growth leading countries are China, India, Pakistan,
Indonesia, Bangladesh, United States of America etc are those
countries where almost half of the world’s population lives. The
cartridges, furniture and paper manufacturers are growing in
this Industry quite well, the only problem is the cutthroat
competition. Office supply area
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Competition Environment
Before going to examine Porter’s Model of Competitive forces, we
have to know what is exactly competition and its types. All the
organizations that could satisfy the needs and desires of their
target market are know as competitive environment.
Types:
Pure Competition
The type of competition that occurs when similar products are
offered and buyers and sellers are familiar with and can easily
enter market.
Monopolistic Competition
The type of competition that occurs when there are many sellers
of a products and each has a relatively small market share.
Oligopoly Competition
The type of competition that occurs when products are similar
and few sellers control most of the market.
Monopoly
A market in which only one organization sells a good or service.
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