Grand and Toy Case

Case Analysis: Grand and Toy: Staples’ Competitive Threat

Instructions:

1. Use this page as the cover page.

2. Each question must begin on a new page.

3. There is no minimum length, remembering quality over quantity.

4. The analysis must be typed-double spaced.

5. Due date is April 15th, electronically

Questions:

1. What is Grand and Toy’s strategy? Has it been successful so far?

2. What threats do traditional competitors pose?

3. What threats do non-traditional competitors pose?

4. Does Grand and Toy have a sustainable competitive advantage?

5. How should Grand and Toy respond?

What is Grand and Toy’s strategy? Has it been successful so far?

Founded in 1882, Grand & Toy (G&T) has evolved into Canada’s leading supplier of commercial and retail office products. With over 2,200 employees working in over 90 locations across Canada, they considered themselves an innovator and a market leader in the office products industry. In order to sustain a competitive advantage, they operated under the strategy of providing the best cost by pursuing cost leadership and differentiation simultaneously.

According to their historical data, their strategy of offering the best cost for office products has been successful, so far. Their overall sales had grown nearly 35% from 1998 to 2000, while their overall profit rose at an even greater rate. G&T divides their operations into three business units to produce revenue: Commercial, Retail and the Stockroom. In 2000, their commercial division accounted for 82% of revenues, of which 20% is attributable to E-commerce , and retail operations accounted for 18%. They have been able to successfully leverage the buying power of their parent company, Boise Cascade Office Products, to source products at the best price. G&T’s logistics and distribution was considered state of the art.

Their vision and objective for 2001 was to achieve sales of one billion Canadian...