Bluebird

Bluebird is an office supply retailer which competes against national and local office supply companies. It has targeted small and medium sized businesses, and currently operates two stores as well as a highvolume catalog section which takes orders by phone, fax and e-mail.

At this point, the company has little oustanding debt and a reputation in the market for providing a high level of customer service. In addition, Bluebird has established e-mail, fax and phone service for ordering; it should add a Web site with its catalog to this array to increase its ability to gain customers.

Bluebird has successfully defended itself against the intrusion of Office Depot and Staples, and has demonstrated that a company can compete in this market on factors other than price. To maintain its market share and increase its reach, the company must continue its aggressive in-house marketing program as well as extend its reach through the World Wide Web.

Bluebird should also close the location which has been losing money in order to maintain its financial strength and allow the company to concentrate on its core business of catalog sales. Reducing the number of locations will also permit the organization to better promote the remaining two stores. In addition, Bluebird has the opportunity to expand its current operations beyond its local geographic area; it should take advantage of this and form a strategic alliance with Federal Express or a similar organization in

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which the larger chains provide to these organizations. If Bluebird can successfully differentiate itself from the competition, it should be able to continue to be successful over the long-term. Bluebird can also take advantage of advances in transportation services and serve small companies outside its immediate geographic area; this is particularly true if the company promotes itself on the World Wide Web. While the company would not use its own delivery personnel to accomplish these deliveries, it could form a strategic alliance with FedEx (or a similar company) in order to provide the fast turnaround time which the company considers its hallmark. The most significant threat that Bluebird faces is competition from the nationwide chains such as Staples and Office Depot. These companies can bring considerable pressure to the market since they can offer lower prices in the short-term in order to gain market share and force smaller companies such as Bluebird to operate within very narrow profit parameters. Another threat facing Bluebird are the remaining small office supply stores in the area. Bluebird is not the only company which offers a catalog of its products to its customers, and it is not the only company which seeks

Category: Business - B