Staples Inc. eport on Internationa Marketing St ategy Module: International M rketing Strategy Deborah Pearson-Jones , Karl Sinott The report attempts t asses Staple’s inc. international strategy and formulate future strategic direction. A context analysis to study the micro and macro e vironment is carried out. An evaluation of t he global challenges and international markets’ characteristics leads to recommendations for future choices regarding new markets, branding, product portfolio and potential b rriers to entry. Stelios Christodoulou 5/19/2010
Contents Executive Summary........................................................ ...................................................................................................................... ......................................................................... ........... 4 Key Issues .................................................................................................................... ................................................................................................................................................ ............................ 5 Current Position .......................................................................................................................... ...................................................................................................................................... ............ 6 Overview ........................................................... .......................................................................................................................... .................................................................................. ................... 6 Strategic Audit............................ Audit...................................................................................... ............................................................................................................. ................................................... 6 Task-Micro Environment .............................................................. ..................................................................................................................... ....................................................... 8 Key Competitors...................................................... ..................................................................................................................... ........................................................................ ......... 8 Macro Environment ........................................................................................................................... ............................................................................................................................. 9 Political............................................................................................................................................ ............................................................................................................................................ 9 Economic......................................................................................................................................... ......................................................................................................................................... 9 Social ............................................................. ............................................................................................................................ ................................................................................ .................10 Ethical............................................................................................................................................ ............................................................................................................................................ 10 Environmental............................................................................................................................... ............................................................................................................................... 10 Legal ......................................... ..................................................................................................................... ..................................................................................................... .........................10 Technological .......................................................... ........................................................................................................................ ...................................................................... ........ 10 International Internal Marketing Audit .................................................... ................................................................................................ ............................................ 11 International Strategy Audit ...................................................................................................... ............................................................................................................. ....... 11 Mission Statement-Values-Beliefs Statement-Values-Beliefs (7S’s Value) ............................................................................ ............................................................................ 11 Corporate Objectives and Goals – Strategy (7S’s Value) .............................................................. .............................................................. 12 12 Marketing Objectives and Goals ....................................................................................... ................................................................................................... ............ 12 International Organisations Organisations Audit......................................... Audit..................................................................................................... ............................................................ 12 Structure (7S’s value) ..................................................................................................... .................................................................................................................... ............... 12 Functional Efficiency- Systems (7S’s value) .................................................................................. 12 Productivity Audit ............................................................................................................................. ............................................................................................................................. 13 Profitability Analysis........................................................ ...................................................................................................................... .............................................................. 13 Assessment of Existing Operations ........................................................ ................................................................................................... ........................................... 14 Products and Services ............................................................................................................. ................................................................................................................... ...... 14 Pricing Strategy ............................................................................................................................. ............................................................................................................................. 15 Distribution ............................................................ ........................................................................................................................... ....................................................................... ........ 15 Promotion Mix ........................................................ ....................................................................................................................... ...................................................................... ....... 16 Sales Force – Staff (7S’s Value) ..................................................................................................... ..................................................................................................... 16 Critical Success Factors ........................................................................................................................ .......................................................................................................................... 17 Key Considerations Considerations - Summary Summary ............................................................................................................. ............................................................................................................. 17 International Strategic Direction .................................................... .......................................................................................................... ...................................................... 18 Strategic Style Review ................................................................. ....................................................................................................................... ...................................................... 18 Cultural Dimensions ................................................................................................... .......................................................................................................................... ....................... 19
Contents Executive Summary........................................................ ...................................................................................................................... ......................................................................... ........... 4 Key Issues .................................................................................................................... ................................................................................................................................................ ............................ 5 Current Position .......................................................................................................................... ...................................................................................................................................... ............ 6 Overview ........................................................... .......................................................................................................................... .................................................................................. ................... 6 Strategic Audit............................ Audit...................................................................................... ............................................................................................................. ................................................... 6 Task-Micro Environment .............................................................. ..................................................................................................................... ....................................................... 8 Key Competitors...................................................... ..................................................................................................................... ........................................................................ ......... 8 Macro Environment ........................................................................................................................... ............................................................................................................................. 9 Political............................................................................................................................................ ............................................................................................................................................ 9 Economic......................................................................................................................................... ......................................................................................................................................... 9 Social ............................................................. ............................................................................................................................ ................................................................................ .................10 Ethical............................................................................................................................................ ............................................................................................................................................ 10 Environmental............................................................................................................................... ............................................................................................................................... 10 Legal ......................................... ..................................................................................................................... ..................................................................................................... .........................10 Technological .......................................................... ........................................................................................................................ ...................................................................... ........ 10 International Internal Marketing Audit .................................................... ................................................................................................ ............................................ 11 International Strategy Audit ...................................................................................................... ............................................................................................................. ....... 11 Mission Statement-Values-Beliefs Statement-Values-Beliefs (7S’s Value) ............................................................................ ............................................................................ 11 Corporate Objectives and Goals – Strategy (7S’s Value) .............................................................. .............................................................. 12 12 Marketing Objectives and Goals ....................................................................................... ................................................................................................... ............ 12 International Organisations Organisations Audit......................................... Audit..................................................................................................... ............................................................ 12 Structure (7S’s value) ..................................................................................................... .................................................................................................................... ............... 12 Functional Efficiency- Systems (7S’s value) .................................................................................. 12 Productivity Audit ............................................................................................................................. ............................................................................................................................. 13 Profitability Analysis........................................................ ...................................................................................................................... .............................................................. 13 Assessment of Existing Operations ........................................................ ................................................................................................... ........................................... 14 Products and Services ............................................................................................................. ................................................................................................................... ...... 14 Pricing Strategy ............................................................................................................................. ............................................................................................................................. 15 Distribution ............................................................ ........................................................................................................................... ....................................................................... ........ 15 Promotion Mix ........................................................ ....................................................................................................................... ...................................................................... ....... 16 Sales Force – Staff (7S’s Value) ..................................................................................................... ..................................................................................................... 16 Critical Success Factors ........................................................................................................................ .......................................................................................................................... 17 Key Considerations Considerations - Summary Summary ............................................................................................................. ............................................................................................................. 17 International Strategic Direction .................................................... .......................................................................................................... ...................................................... 18 Strategic Style Review ................................................................. ....................................................................................................................... ...................................................... 18 Cultural Dimensions ................................................................................................... .......................................................................................................................... ....................... 19
Markets Overview .................................................................................... ......................................................................................................................... ..................................... 19 Future Strategic Market Choices (Enter-Exit-Reposition)......................................... ................................................................. ........................ 20 Existing International Markets .................................................................. ...................................................................................................... .................................... 20 New International Market s Proposals ......................................................................................... ......................................................................................... 21 Modes of entry........................................................ ....................................................................................................................... ...................................................................... ....... 22 Internal Processes ..................................................................................................... ............................................................................................................................. ........................ 22 Branding Strategy.......................................................................... Strategy.................................................................................................................................. ........................................................ 23 Product Portfolio Strategy .................................................................................................................... .................................................................................................................... 23 Current Offerings & NPD...................................................... ................................................................................................................... ............................................................. 23 Barriers to Implementation Implementation & Suggestions................................................ ........................................................................................... ........................................... 24 Conclusion.......................................................................................................................................... ............................................................................................................................................. ... 26 List of & Tables Figures ......................................................................................................................... ......................................................................................................................... 27 27 References ................................................... .................................................................................................................. ......................................................................................... .......................... 44
Table of Figures Figure 1 RETAIL STORE MARGINAL CONTRIBUTION ............................................................................................. 13 Figure 2 BCG MATRIX - STAPLES' SBU's............................................................................ .................................... 14 Figure 3 VERNON'S INTERNATIONAL INDUSTRY LIFECYCLE ....................................................................... ........... 19 Figure 4 COUNTRY ATTRACTIVENESS VS COMPANY'S STRENGTHS ...................................................................... 42 Figure 5 ENTRY MODE STRATEGY ......................................................................... ................................................ 43
Table 1 CAGR 2003-2012 B Y SECTOR ..................................................................... ................................................. 7 Table 2 KEY COMPETITORS ..................................................................................................................................... 8 Table 3 PORTERS' 5 FORCES ............................................................................ ...................................................... 27 Table 4 STEEPLE ANALYSIS ............................................................................. ....................................................... 28 Table 5 STEEPLE ANALYSIS - Continued ................................................................................................................ 29 Table 6 STEEPLE & STRATEGIC CHOICES .................................................................. ............................................. 30 Table 7 PRODUCT CATEGORIES GROWTH ............................................................... ............................................. 32 Table 8 STORES BY DIVISION & MARGINAL CONTRIBUTION ................................................................................ 33 Table 9 FINANCIAL DERIVATIVES & RATIOS ............................................................... ........................................... 33 Table 10 FINANCIAL DERIVATIVES & RATIONS ............................................................................................... ...... 34 Table 11 SWOT ANALYSIS ..................................................................................................................................... 35 Table 12 TOWS ANALYSIS - STRATEGIC CHOICES ........................................................... ....................................... 36 Table 13 McKinsey 7S's - NEW STRATEGY FORMATION ....................................................................................... 37 Table 14 12C's FRAMEWORK ................................................................................................................................ 38 Table 15 CAGR GLOBAL MARKET COMPARISON .................................................................................................. 39 Table 16 GROWTH OF REGIONS 2003-2012 .................................................................................. ....................... 40 Table 17 INTERNATIONAL COUNTRY ATTRACTIVENESS MATRIX........................................................... ............... 41
Executive Summary
This report seeks to analyze the Staples Inc Corporation by carrying out an internal and external audit to reveal its prominent issues, these being in-house strengths or weaknesses and propose how opportunities and threats of the office supplies industry can be utilised to propose future strategic choices. Micro environment internal factors assessment such as management structure, marketing strategy, distribution channels and a brand audit is presented to inform the company’s performance performance appraisal. The domestic and international operations of the company are reviewed and in accordance accordance with an industry specific environmental scan, short and long-term threats are indentified as well as possibilities for future international expansion. Suggestions are made on market entry methods for specific regions and countries. Furthermore a revised product portfolio is proposed signifying products that need to be either digested or empowered hand in hand with NPD planning. Lastly, barriers to implementing the above international strategic choices are highlighted and suggestions are made on how to overcome those.
Models Utilised: STEEPLE, Porters 5 Forces, SWOT –TOWS Analysis, 12 Cs, Mc Kinsey’s 7S’s, GE Matrix, Opportunity-Risk Matrix, BCG Matrix, International Country/Region Attractiveness Matrix
Key Issues
∂
Ability to remain competitive within the domestic and international markets considering the economic climate uncertainty which affects consumer demand accordingly
∂
Strategic expansion to new markets and allocation of resources to manage profitability ∂
Review of existing business model when entering new markets to avoid cultural clash and adopt to buying characteristics considering differences in national economic climates
∂
Compliance with national legislation and regulation to avoid legal contravention and damaging of corporate reputation
∂
Internal management mechanism enhancement to inform and educate managers on issues arising from international expansion to avoid wasteful resources allocation and management inefficiencies
∂
Ability to attract competent associates (employees) and in-house knowledge to balance labour costs with their increased needs
∂
Manage relations with third party vendors to minimize negative possible effects of dependency and scenarios of them failing to deliver on quality, time and contract terms agreed.
∂
Balancing product mix and brand portfolio between proprietary branded products and third party vendors products to avoid interest conflict, cannibalization of brands, poor financial performance and intellectual property issues that arise
∂
Ability to secure external funding considering the hesitant attitude of financial institutions towards lending large amount of money
∂
Strategic choices for international expansion that result from extensive environmental scanning, resource availability and efficiency within the new marketplace as well as the alignment of corporate goals and vision for these to reflect the extended strategy.
Current Position Overview Staples Inc is an American origin provider of office products and services. The company was founded in Boston Massachusetts, back in 1986. Since then, the small corporation has grown to become the world’s industry specific leading provider. Its first superstores were set up to offer an easy to shop store environment, with quality in-stock products and knowledgeable personnel. As of 2007 the corporation is divided into 3 distinct divisions, North American Retail, North American Delivery and International Operations. Staples, markets its products under 3 different brand names which are ‘Contract’, ‘Staples Business Delivery’ and ‘Quill’. Its product mix has developed to encompass both products and services which are provided via retail stores, catalogue sales and online. From office stationery to printing and mailing services, Staples is dedicated to deliver in every ‘moment of truth’ to its brand promise which is ‘making buying office products easy’. Its corporate strategy as provided by the Staple’s 2007 Annual Report calls upon three areas of focus. These are: for employees to become neighbours of choice, the Staple’s brand to be differentiated and responsible growth. Staple today employs 76,000 associates (employees) on a full and part-time basis. For the fiscal year ended January 2008, Staples reported a 6.7% YOY growth on turnover to reach 19.4 million, while its profits recorded an increase of 5.8% YOY. Staple’s International Operations represent however only 14% of its annual turnover.
Strategic Audit Staples Inc. operates in the global market of office services and suppliers which had a turnover of USD $177 billion in 2007. The market has grown steadily at a YOY increase of 2.6% and is forecasted that sector worth will reach $200 billion by 2012 with a compound rate of 2.52% from 2007 to 2012 (See Table 1, page 7) . This suggests that while total market valuation increases this happens at a slower rate which is affected by external uncontrollable factors such as economic instability; rising inflation levels, legislative constraints and consumers’ lowered disposable income(Marketing, 2009). Market operations are concentrated to 3 major geographical regions which are Americas, Asia Pacific and Europe. As of 2007, the Americas amount for the56.4% of the global market with the US being the most important market within the region. Europe has a total share of 24% and Asia Pacific the remaining 19.4%. The declining growth rate of the North American division is largely attributed to the high number of big general suppliers like Costco and Wal-Mart that offer customers the ability to purchase their office supplies together with their regular shopping thus avoid buying from specialist retailers like Staples. Having a wider choice, causes customers to become more price sensitive and weakens the bargaining power of suppliers.
For the years 2007-2012 analysts predict growth rates of 2.76%, 3.07% and 1.43 for Americas, Europe and Asia pacific respectively. For a more detail look on industry growth rate analysis (See Table 1 below). Table 1 CAGR 2003-2012 BY SECTOR
The paper-based products segment was the markets’ most lucrative in 2007, generating total revenues of $78.4 billion, and equivalent to 44.4% of the market's overall value. The office services segment contributed revenues of $34.9 billion in 2007, equating to 19.8% of the market's aggregate revenues (See Table 7, page 32)
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Task-Micro Environment The report utilises the Porters’ 5 Forces framework(Porter, 1980) to audit the operating environment of Staples from an outside-inside view. For a detailed break-down of the framework please see Table 3 (page 27)
Key Competitors
Table 2 KEY COMPETITORS
Staples competes both internationally and
Nationwide chains
International chains
United Stationers
Best Buy Office Max Office Depot Avery Dennison Corporation Pitney Bows
domestically with a number of corporations. These range from multinational to much smaller domestic specialised retailers. A
RadioShack
summary of them, classified by span of their
Rymans Inc.
operations can be found in Table 2
Computer World
•
Power of Buyers
Buyers’ power is related directly to their annual spend and the size of the company.
Local providers Numerous independent companies serving local needs
There is low customer loyalty, low switching
Leading global retailers Costco Wholesale Walmart Stores inc.
costs and high sensitivity to prices. Increased competition results in increased advertising which in turn creates price-awareness. This increased buyer power led to price discounts which empowers buyers bargaining power. Overall, buyer’s bargaining power is moderate. •
Substitutes
The threat of substitutes within this industry is moderate. Environmental practices created a differentiated offering of eco-friendly products. Switching costs are moderate due to already developed ICT systems by market players. •
Industry Competitiveness
We define the ‘industry’ as all retail-online-direct mail and superstore companies. The industry is highly fragmented and penetration varies according to geographic region. US and Western Europe are the major regions of operations. Furthermore Internet has made price-comparison easier. The original case study suggests that the global market is moderately competitive. However, according to data analysed this report found the degree of rivalry being very strong. •
New Entrants
Nature of products being commoditized offers loyalty incentive. This combined with low end-user switching costs and easy access to suppliers and distribution channels attracts potential new
entrants. Environmental concerns among consumers led to increasing demand for eco-friendly products and the creation of a new niche market.
Economies of scale are high especially in
fragmented markets encouraging prospective entrants. However Mergers and Acquisitions are common within the industry as smaller companies find it difficult to stay competitive. Furthermore, the global market develops at a fairly stable rate, something which discourages new entrants. The threat from new entrants can be characterised as moderate. •
Power of Suppliers
Numerous suppliers especially from low cost Asia region decrease suppliers’ power. Big players integrate by branding proprietary products thus diminishing the power of third party suppliers. Overall, supplier power is moderate.
Macro Environment The external environment‘s forces affecting the company, have been analysed using an alteration of the original PESTEL framework (Brennan, 2008). The new model, ‘STEEPLE’ was customised to reflect not only the cause of the external force but also the risk/opportunity that Staples faces. Furthermore the model includes an ‘action’ parameter where possible measures and actions are proposed for the Company to exploit opportunities and risks that arise. In order to determine which of the external forces identified are the most important for Staples’ to consider, the modified model weighs them according to immediacy parameters: potential impact, time, type, trend and relative importance as suggested by Morrison (2009)
This section summarises the most prominent factors affecting Staple’s external environment. You are highly encouraged to take a look at Table 4 (pages 28-29) where a detailed STEEPLE analysis is presented. Political •
Increase in U.S minimum wage = decreasing revenue per employee
•
Deregulation of international trade barriers and the ease of doing business abroad = Creates new opportunities for expansion to nations that used to have high trade costs, high import tariffs and legal barriers.
•
Attempts for mergers or acquisition may be blocked due to competition policies.
Economic •
Credit crunch, economic fluctuations and instability affected negatively consumer spending, especially in Portugal, UK, Germany, Ireland and the Unites States
•
End-user disposable income has decreased
•
Consumer confidence is low
•
Banks hesitant to lend
Social •
Widespread adoption of internet broadband and increase in size of price comparison websites = consumers price sensitive and non-responsive to loyalty schemes.
•
Greater need for social housing and single living people
Ethical •
Ethical concerns among customers that have to do with corruption, fraud, and child labour as well as issues of ethnical minorities, diversity and inclusion.
Environmental •
Alert of customers for Global pollution
•
regulatory bodies monitoring urge companies to use more biodegradable fuel and lessen impacts on environment
Legal •
Increased Health and Safety Legislation
•
Changing National Legislation and Regulatory Obligations in different countries
Technological •
Consumers are becoming more and more sophisticated posing the risk for Staple’s products to become outdated and non-attractive to its target market.
•
Technology is ever changing
•
Sophisticated database marketing techniques now possible
•
Rise and rise of internet sales
The report suggests that you study Table 6 (pages 30-31) where findings of the STEEPLE analysis are linked and transformed to future strategic choices. This detailed analysis will inform the SWOT and strategic direction proposed at a later stage in the document.
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International Internal Marketing Audit The internal audit process incorporates the audit components as suggested by Kotler and Keller (2006).Furthermore, some of McKinsey’s 7S’s (Pascale & Athos, 1981) variables are selectively used to assess the internal environment from a an inside-outside view.
International Strategy Audit Mission Statement-Values-Beliefs (7S’s Value)
Staples Mission statements is ‘’to be the total office products and solutions provider for small business, home offices and consumers by providing a broad mix of merchandise and services at everyday low prices in an atmosphere of enthusiastic and knowledgeable sales force. The company’s vision is ‘’to be the best provider of Office Solutions in every market we operate’’.
Brands
StaplesEasy and EasyTech are used to reinforce the above message.
In its 2007 Annual Report, Staples stresses 4 particular values- using the acronym CARE -which summarise its beliefs. These values are: C ustomer care, Associates support, communicate the Real thing and finally E xecute the corporate goals as defined. In addition, Staples embraces the idea of the good corporate citizen having defined through its StaplesSoul and Code of Ethics the company’s philosophy. This philosophy comprises a holistic approach(Lewis, Frank, & Alexander) to doing business -both internally and externally- with integrity and fairness avoiding fraud and corruption. Its foundation principles include issues of: ethical dilemmas, environment protection, diversity and giving back to the community.
To support the above commitments Staples introduced Staples EcoEasy challenge, a recycling program for electronics. Other evident actions that prove its commitment include switching from its paper vendor APP (Asia Pulp and Paper) previously accused for non-environmental practices and donating money for foundations, social projects and community programmes(Marketing, 2009). These environmental actions and community obligations call upon the positive impact Staples has on the community making associates to embrace the process and invite customers to join efforts. Ultimate goal of the focus on CSR is of course profitability which i s hard to achieve because of the disproportionate amount between money being spent to develop such ‘green’ mechanisms and the return from charging small price-premiums on products and t he intangible nature of “increased” goodwill value. Despite its focus on diversity Staples seems to be doing badly on addressing minority issues and female employment. Number of women associates increased only 2% from last year reaching 22% against a 42% industry average whereas the number of minority associates employed increased 7% to reach 12% again 15% industry average.
Corporate Objectives and Goals – Strategy (7S’s Value)
Staples highlights in its 2007 Annual Report three strategic principles that inform the goals of its strategy. The Corporate Objectives as identified in 2007 are: ∂
firm financial performance and stability
∂
ethical behaviour & environmental awareness
∂
respect of communities both domestically and internationally
∂
develop European division to same profitability levels as its North American Delivery
The Corporate Goals that result from the above objectives are: ∂
Differentiating the Staples brand by making the purchase of office products easy
∂
Achieve industry-best execution and expand responsibly its market share in every region Staples operates in
∂
Increase own-brand sales from 22% to 30% (next 5 years).
Marketing Objectives and Goals
Similarly with its corporate goals, the company sets specific marketing goals. For the year 2007 main areas of focus are: ∂
steps forward for offering excellent customer service
∂
enhancement and development of next day delivery service
∂
development of regional and domestic websites to improve customer experience
Positioning: Leaders in office and related products, innovators in terms of ethical sourcing,
environmentally concerned and health and safety, associates and partners training.
International Organisations Audit Structure (7S’s value)
Staples organisational structure is divided into functional divisions as well as regional. This matrix kind of structure(Doole & Lowe, 2004) allows for flexibility and co-ordination of international and domestic operations. Management style can be described as professional bureaucracy (Mintzberg, 1989)and of authoritative style with some degrees of freedom. As of 2007 the corporation is divided into 3 distinct divisions, North American Retail, North American Delivery and International Operations. Functional Efficiency- Systems (7S’s value)
Staples owns 1738 retail stores in North America and 300 stores overseas. A complete list of stores and countries can be found in Table 8 (pages 33).Analysing data extracted from the case study, becomes apparent the disproportionate number of stores in some countries compared to their share in the global industry market. For example the North America Retail division includes 1440
stores. This number does not correspond to the divisions’ contribution in the global industry value which is 46.8%. From further analysis carried out in Table 8 it is proven that the marginal contribution of every added new store in the North American Division, Staples earns a smaller profit margin compared to a store opening internationally see Figure 1 below. Except from the UK all other current international markets of operation can afford more stores with Germany and China having the greatest potential for growth. Figure 1 RETAIL STORE MARGINAL CONTRIBUTION
Productivity Audit Profitability Analysis Analysing the given consolidated financial data we can draw some basic conclusions regarding
Staples financial position. Gross Profit Margin for the company increased from 28.56% in 2007 to 28.61% reflecting a healthy financial organic growth. Compared to major competitors Staples comes second behind Pitney Bows Inc. having a 5.15% net profit margin ratio. This proves the ability of the company to remain competitive within its sector. A 1.95 Working Capital or Current Ratio illustrates that Staple’s short-term assets can be used immediately to pay off its short-term liabilities. Staples uses its own measure for monitoring financial performance, the RONA (Return on Net Assets). For the year 2007 RONA was 13.8%, an increase of 1.2% from 2005 and decrease of 0.5% from 2006. Despite the small fluctuation the metric suggests that management is able to make significant profits on assets managed. North American Retail has been historically the most profitable and grown division generating 52% of total sales. North American Delivery contributed with a 34% share and International Operations accounted only for the 14% of income. it is evident that income from external operations comprises only a small proportion of sales. This translates as $2.74 billion from operations abroad and $16.63 from North American operations, see Table 10 (page 34)
Assessment of Existing Operations Products and Services
Staples offers an array of products from office supplies to various office related services. Its products are marketed under 3 different brand names which are ‘Contract’, ‘Staples Business Delivery’ and ‘Quill’. Target markets are identified as the casual customers, home offices, small and medium sized businesses as well as Fortune 1000 companies. A BCG matrix - see Figure 2 ,below - is constructed to determine the priorities which have to be given on the product portfolio .From 2006 to 2008 the company’s growing SBUs of office supplies & services and business machine related products contributed positively to Staples increased sales with a 32.98% and 3.88% increase respectively. In contrast, the SBU’s of computers & related products and office furniture contributed less by decreasing 27.16% and 9.7% respectively. For the same years Staples turnover increased 17% to reach $19.4 billion. Figure 2 BCG MATRIX - STAPLES' SBU's
It becomes apparent that Staples will need to focus on its growing SBUs and digest some others e.g. office furniture, if it is to increase overall efficiency and profitability. Investing in other diverse segments it is a level-headed choice in the long-term. The BCG Matrix above turns into a Directional policy matrix(Butterworth-Heinemann, 2001) pointing out the future direction for the companies SBUS’s. The Office Supplies and Services SBU has to be given extra focus to remain a star. Business Machines and Related Products need to move from being a question mark to become a star and computer related products have to be milked by becoming a cash cow. Lastly the furniture SBU needs to be digested or restructured.
The company aims to gain competitive advantage from having a number of items always in-stock ink, toner and cartridges - and promotes this ability dynamically. Own brand products account for 22% of turnover and this will eventually cause perplexity between Staples and third-party suppliers. Staples has to make sure that keeps a balance between the amount of proprietary brands and third party brands offered through its product mix to prevent heated discussions.
Pricing Strategy
The products and services of Staples are targeted to both the B2B and B2C segments. Staples, aligned with its differentiation strategy seems to follow a pricing scheme that is mostly found in mature industries(Mills, 2002). This suggests that the company should strive to achieve the highest product/service quality differentiated position relative to competition coupled with an acceptable delivered cost structure and pricing policy to gain margins sufficient to fund re-investment in the differentiation. To add on the above Staples offers its own-branded products with a typical 10-15% price reduction compared to substitute brands. Profitability for Staples will come from a combination of pricing strategies these being premium pricing for differentiated products, geographical and penetration pricing when expanding internationally
and
finally
product
bundle
and
promotional
pricing
strategies
for
promotions(Bradley, 2002). If orchestrated appropriately, these strategies will offer flexibility to the company to price accordingly product lines and brands to achieve different regional and domestic profitability targets. A single pricing strategy harms the business and can have devastating results.
Distribution
Distribution of products happens via a combined network of wholly owned retail outlets, catalogue sales and online depending on country of operation. The considerable amount of 75% of North American Retail sales division was processed online. Staples prides itself for its Stock Keeping Units (SKUs), allowing for efficient and effective stock management which in turn maximizes customer satisfaction. This exceptional distribution instrument offers Staples an economic advantage through utilising the distribution learning curve(Ebbinghaus, 1964) and gains from economies of scale which result from time-efficient delivery. The company saved USD300 million in inventory costs since 2005 using effectively the SKU’s . Staples will need to transfer the know-how of this process when expanding its operations in international markets and apply its successful online order-processing system to other national website. SKU’s success has to be also replicated in especially heavily saturated markets.
Promotion Mix
Staples communicates with customers through a combination of internet marketing, telesales, direct mail, TV, radio, newspapers and circulars. It makes sure every emanated message is consistent and addresses to consumers’ needs as well as reflects the character of the company. Communicated messages intend to empower brand awareness and increase stores traffic. Staples Reward –the company’s only loyalty scheme- has not delivered the expected results and has to be reviewed the soonest possible with new exciting incentives. Benchmarking the promotional efforts of other competitors is a ‘safe’ scenario that has been at least tried before.
Sales Force – Staff (7S’s Value)
The Sales Force of Staples has grown to around 76’000, so its revenue per employee has fallen significantly to $25,486 with companies like United Stationer Inc. reaching the incredible amount of $762,295. Staples associates, undergo special training and learn to comply with the company’s ethics and appreciate the values that Staples stands for. This however is not reflected to their performance. This is probably because of the bureaucratic leadership style of Staples which does not provide the appropriate degree of freedom and doesn’t encourage bottom-up communication. The company needs to identify which are these groups of associates underperforming and where do they operate. By isolating those, Staples can expose the problem and try to bring on the appropriate mechanisms that will eventually improve performance of stores.
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Critical Success Factors According to Treacy & Wiersema (1995) a global brand needs to excel in one of the following 3 value disciplines: 1) Operational excellence
2) Customer intimacy
3) Product leadership
Staples chooses to focus on customer intimacy by giving great attention to customer service and focuses on the delivery of product and services on time and above consumer’s expectations. Porter’s Generic strategies describe this strategy as differentiation.
USP (Unique Selling Point): socially concerned and proactive, environmental sensitivity, ethical
sourcin and sellin attitude
ualit service and customer intimac
Some of the competencies that comprise the USP of Staples such as environmental focus and social responsibility where found from the analysis carried out not really offering a differential advantage to the firm thus making the USP not so unique. This matter will be addressed in the recommendation section. This report suggests that Staple’s critical success factors are the following: •
Creation of a sustainable brand image and clear positioning amongst competitors
•
Management & Leadership Style Review
•
Internal marketing both with associates and stakeholders
•
Funding
•
4 Constraints: Overstretching, Competitive landscape, Changes within the office supplies industry and Cultural clash
Key Considerations - Summary This part of the report will summarise the findings of both the external and internal audits carried out previously. The SWOT –TOWS frameworks are utilised to tease out the most prominent considerations for Staples. Refer to Table 11 (page 35) where the main strengths and weaknesses of the organisation are identified along with external opportunities and threats. Using the TOWS framework, see Table 12 (page 36) we combine the findings to formulate possible strategic choices. Through this analysis, the report suggests for the following strategic choices to be made by Staples: ∂
Adoption of existing successful Supply Chain mechanism in international markets
∂
Development of new innovative products (especially office hardware and IT services) to benefit from economies of scale and gain competitive advantage from patent protection.
∂
Balance product portfolio with proprietary branded products and third party supplier brands.
∂
Avoid introducing new premium priced products and focus on own-brand “value pricing” strategy
∂
Manage relationships with manufacturing outsourcing suppliers to develop strategic alliances and long term mutual trust
∂
Closely monitor financial performance and concentrate on repayment of long-term debt to avoid defaults.
∂
Inform and train managers and associates to prevent inefficiencies and legislative disputes that arise from cultural clashes and lack of knowledge of foreign environments
∂
Expand strategically to avoid stretching of resources
A more detailed presentation of the strategic routes proposed, can be viewed in Table 13 (page 37) where using McKinsey’s 7S’s the report proposes how Staples can holistically and effectively
move forward.
International Strategic Direction For Staples to operate successfully in international markets it needs to aim for the following: ∂
High brand equity at least in the markets it already operates
∂
Economies of scale in manufacturing and distribution
∂
Technological advantage through break-throughs and international patents
∂
Efficient market research carryout to understand host country needs and characteristics
∂
Strong international management and knowledgeable associates
Strategic Style Review According to the analysis carried out this report suggests that Staple’s Strategic planning style must be transformed without delay to become a Strategic Control Leadership Style which will support a new focus differentiation strategy as suggested by Porter(1980). Staples will need to consider adopting in line with its organic international expansion a ‘blue ocean strategy(Kim & Mauborgne, 2005)’ to develop uncontested market space that makes the competition irrelevant. According to Figure 3 (see page 19) , countries like Africa and the Americas ( (South America) comprise territories
where little has been done to introduce office products. Now that barriers are lifted and these countries’ economies stabilize, it is recommended that Staples attempts to penetrate them methodically.
Cultural Dimensions Kotabe & Helsen (2009) suggest that before a corporation enters a new market needs to evaluate the cultural elements that affect its business environment.
Furthermore Gladwin & Hofstede
identify 5 cultural dimensions that affect a national marketplace (1981). Considering the above academia findings this report applies selectively 10 out of 12 variables as suggested by Doole & Lowe (1999) to the 12C’s framework evaluating their influence on Staples’ regions of existing and potential operations. These are presented in Table 14 (page 38) Markets Overview
The global market is currently at a moderately competitive stage with a huge potential for expansion in
operations
especially
from
international
players
in
the
industry.
Using
Vernon’s
(1966)international industry lifecycle to plot industry’s geographic regions the below figure suggests that the markets of Asia, Europe-especially Eastern- the Americas and Africa have not been exploited to their full potential from industry leader firms and can all be considered as future expansions areas, see Figure 3 below.
Figure 3 VERNON'S INTERNATIONAL INDUSTRY LIFECYCLE
Future Strategic Market Choices (Enter-Exit-Reposition) Existing International Markets
As in 2007 Staples operates in 22 countries via retails stores, catalogue sales and e-commerce. The division that houses all these countries it is the International Operations division. According to the case study this division will change to be named Staple’s International after the Corporate Express merger. It is the degree of management devolution(Vermillion & Common Property, 1998) and the ability to change/adapt incrementally which will determine whether the company can cope with the global markets’ changing dynamics and sustain its competitive advantage by leveraging its core competencies(Prahalad & Hamel, 1990).
To evaluate the performance of these markets we look at market worth and continual annual growth rates (CAGR). As of 2007 the biggest market share carry the US with however a stagnant CAGR of 2.4% for the next 5 years. Europe comes second with total activities of 42.3 billion and an increasing CAGR of 1.2%. Last is Asia Pacific worth $34.60 and an impressive though CAGR of 2.7% see Table 15 & Table 16 (pages 39 & 40). ∂
Europe (current operations)
Sales from Europe did not perform according to predictions mainly because of the transitional period of international expansion and the inability of Staples to enter the market with tailored product offerings that meet host country specific needs. Also Staples chooses since today to enter many of Europe’s markets via its product catalogue and online sales channel something which will only yield limited profits for the company.
As the market is already fragmented there is need for extensive advertising to create brand awareness and form favourable brand image (Hollensen, 2006). For Staples to improve performance in this region it needs to consider launching some of its superstores in the fragmented European countries to steal market share from small businesses. The recent acquisition of Corporate Express will help the company in serving Europe’s big corporate clients. Staples should also transfer previous knowledge from Corporate Express but at the same time train staff and managers to carry the ethos of Staples and the brand’s values.
Asia Pacific (current operations)
The presence of the company in the Asia Pacific Region can be characterised as ‘just ok’. Staples did not put the appropriate emphasis into this market and failed to realise that the potential is higher than expected. The Asia Pacific Region is becoming more educated and new job opportunities are created because of the low manufacturing costs of the countries that comprise the region, which in turn increases the demand for office supplies and products.
As a result, Staples has to follow now a ‘second-mover’ advantage tactic in this region. Through detailed research and benchmarking of competitors the brand needs to develop the appropriate mechanisms to compete effectively in the most diverse region that currently operates in. The scenario of adding to its distribution channel its own stores and not retailing only through its direct mail service and online ordering has been identified from the external environment as a good choice.
New International Market s Proposals
Before attempting to asses any new market opportunities Staples need to cross-check the following: a) What are the short- term company objectives and do they fit with the new markets? b) Do we have available resources (5M’S Chaffey) to enter and sustain operations effectively and efficiently? c) What is our know-how from existing outside the country operations? d) How competitive is the environment? e) Do we posses relative advantage when compared to other marketplace sellers? f)
What are the macro-environment factors that affect the company?
The author of this report felt that segmenting the market as in traditional terms would not inform the strategy correctly thus followed an alternative r oot. For assessing the attractiveness of new markets and identify appropriate ways of entry, this report proposes a new model bringing together the Opportunity-Risk Matrix (Liabotis, June 2009) the Country Attractiveness Matrix and the McKinsey/GE Matrix(Harvard, 1999). The new ‘international markets assessment matrix’, see Table 17 (page 41) assigns to every potential region/country a total attractiveness score that is extracted from comparing 9 industry attractiveness specific variables. Then according to the overall results goes on to plot these weightings along the relative company’s’ strengths on a new matrix as suggested by Hashizume (2001) see Figure 4( page 42)
The results revealed that the most promising new markets for entry at the current stage are South American and Africa. These two regions scored high in industry attractiveness suggesting that there is a huge potential for Staples to enter these markets by investing directly in them as it also poses the strength to directly export to wholly owned branches and retail stores and not through partnerships. China and Western & South Asia are the next two most attractive markets. The analysis suggests that Staples should enter these markets through joint ventures because of their distinct characteristics and risks inherent such as differences in buying criteria and cultural distance. Additionally Staples has to take the opportunity and penetrate unexploited European countries that recently joined the E.U. to benefit from low transportation costs and cheap workforce in Eastern European Countries. Lastly the option of entering France and Italy with wholly owned retails stores seems logical as these countries haven’t been affected by the economic crisis. Strategic vision has to be in place for every new expansion attempt. Even if the company enters new markets, its sales or profit levels may not be successful enough to recoup its investments in them and may reduce overall profitability. Modes of entry
Depending on the 12C’s analysis and the country attractiveness matrix a decision has to be made on how to enter the above selected new markets. Following a method proposed by Root (1994) the selected countries are plot on a Control Vs Risk Matrix. The outcome proves that entering Africa and South America via own subsidiaries and sourcing products directly is the most preferred root see Figure 5 (page 43).
Internal Processes For Staples expansion strategy to yield the expected results it needs to be communicated both internally and externally. Staples needs to become a learning organisation(Argyris & Schön, 1978) that shares its vision and values among all operational levels thus involving everyone in the decision making process. A feedback loop mechanism has to developed by adopting a deutero-learning procedure as suggested by Dodgson (1991). This will mean that Staples learns to identify its mistakes and errors, while at the same time questions and modifies its existing norms, procedures and policies. Drawing on Miles and Snow(1978) findings for international strategic options, Staples will need to adopt the strategy of the Prospector in the new and unexploited markets such as South Africa and South America. This strategy seeks to create new products, exploit new opportunities and shape the marketplace. In mature markets such as the ones of US and Western Europe, Staples need to take the role of the Defender. This will allow it to protect its market position through efficient production and strong control mechanism of continuity and reliability. Lastly in markets that still allow for growth such as the countries of India, Canada and Eastern Asia the company needs to take the role
of the Analyser. By doing that Staples will avoid excessive risk and focus on the development and delivery of new products by careful assessing alternatives within these markets.
Branding Strategy Global brands have more visibility than other brands, they can benefit from economies for scale, capitalize from extensive media coverage and overlap according to Aaker(2000). Fair enough, but sometimes the attempt to exit domestic borders can result to a disaster if not planned strategically. Because of Staple’s operating sector complexity - the office & supplies products – and the homogeneity of products, it is basically unattainable the idea of becoming a global brand in terms of a brand like Coca Cola. However, Staples can create a holistic brand image that carries its values and beliefs; As highlighted above this brand essence cannot be based on its product characteristics and attributes as those need to be modified to adapt to each region’s special cultural characteristics. Staples needs to follow the example of the financial services company HSBC. HSBC has identified the need for being differentiated in a sector that allows for very limited differentiation chances due to its product nature. The bank created an integrated marketing communications campaign to deliver the message that: it is the ‘world’s local bank’, meaning that the bank cares for the individuality of its customers and respects its local differences by altering its product offering to suit those needs. According to Wellman’s (1999) theory, Staples should aim to become a Glocalised brand that has a unified and consistent positioning across geographic borders without necessarily having the same name or marketing program but with tailored region specific practices and product/ service offerings.
Product Portfolio Strategy Current Offerings & NPD The report has identified in previous sections - while making its BCG Matrix- that it is of vital importance that Staples digests or fully restructures its furniture products SBU. Staples currently pursues a ‘Product and Communications Extension Strategy’ also called ‘Dual Extension Strategy’(Mike Kotabe, 2004). This strategy enabled the company to save significantly on R&D expenditure and use these spare financial resources for expansion specific purposes such as employing the right associates abroad, letting premises and carrying out market specific research. Now that this transitional period has ended, Staples is in the process of growing organically in foreign markets having set as an objective to increase profitability similar with that in its domestic market. For this international expansion to deliver the expected results Staples needs to review its product range and turn to a ‘Product and Communication Adaptation Strategy’ also called ‘Dual Adaptation’(Carpenter & Nakamoto, 1989). This strategy will allow for products to be customised
according to region specific requirement and communication messages to be tailored accordingly. Threats such as cultural differences, product usage purposes, purchase decision criteria have already been identified in this report as possible failure variables to the expansion process. Furthermore innovation has to be in the centre of the NPD process for Staples. Finding new suppliers that will offer competitive advantage either via complementing the current product mix with breakthrough products or by supplying products cheaper, it is a major criterion for success. This report suggests that the way forward for Staples is to focus on IT services and Hardware office equipment such as copy and printing machinery. As identified above these two niche markets are growing significantly and Staples by taking advantage of its core competencies and mechanisms that has already in place such as supply chain and e-commerce- can gain a significant amount of market share. New innovative products need to be launched using a Sprinkler Strategy to increase awarness and create buzz, whereas products that meet basic consumer needs such as simple pens and booklets need to follow an organic Waterfall model strategy (Riesenbeck & Perrey, 2009)
Barriers to Implementation & Suggestions When Staples decides to initiate the proposed new strategic plan as proposed by this report it will face some important barriers. Some of them have been identified in the STEEPLE and SWOT models. In this section the report outlines the most prominent barriers and proposes ways to avoid those. The main barriers that surround Staples current and future operations are the following:
#
BARRIERS
RECOMMENDATIONS
One of the most important constrains is
1
∂
Receivables
forecasting
and
financial
control
funding. Staples has issued commercial
mechanism to avoid stretching and wasting
paper for managing short-term debt which
valuable resources
is due for repayment in 2012.
∂
Option to borrow today with favourable terms from private financial institutions
INTERNAL
The ability to change and adapt to new
NON TARRIF
2
RELATED
national
environments
with
∂
Raise funding internally ( investors contribution)
∂
Benchmark processes and product features from
different
culture, buying patterns and purchase
existing market’s successful companies ∂
criteria. The extent to which Staples can develop
3
4
Merge or Join with existing market players to avoid failure and benefit from economies of scale
∂
Develop strategic alliances with companies from
the appropriate distribution networks, find
diverse industries e.g. Procter & Gamble to share
the right partners abroad and collect
information and expertise
market related information.
∂
Duplicate successful SKU’s abroad
Management mechanism enhancement to
∂
Feedback-loop mechanism to obtain and transmit
attract competent employees as well as inform and educate managers on issues
valuable information to managers ∂
arising from international expansion to avoid management inefficiencies
Develop SERVQUAL standards and process specific Blueprints to inform associates.
∂
CRM system to encourage repeat purchase, increase customer satisfaction which will result to loyalty
Complying with national legislation and
∂
regulation will be a key determinant for
5 success if it is for Staples to avoid legal
Advise solicitors specialising in international cases and expansion
∂
Create a monitoring and update method to obtain
contravention and damaging of corporate
up to date information on current and changing
reputation.
legislations
6 Dealing with tariffs and quotas from
∂
existing and future international operations
Get hold on information on country specific cases prior to entering will result to efficiency and prevent sudden costs
7 Debtors in different countries will demand EXTERNAL
∂
Devise an efficient debt collection unit in every
different credit terms as well as the
country of operation which will report in tactical
possibly of some of them failing to repay
periods to its corresponding financial department
resulting in bad debts written off.
8 Exchange Rate volatility and fluctuations in
∂
Forecast subjectively to avoid surprises
∂
Monitor currency exchange rates – considering also
national market economies.
liquidity
- to benefit from favourable exchange
rates ∂
Report Balance sheets and Income Statements in common currency to avoid causing confusion among investors
This space is intentionally left blank
Conclusion Staples is currently considered as an international corporation trying to establish a sturdy presence in the global market. The key issues outlined above need to be addressed via a thorough strategic plan injected with a strategic intent that signals clear direction, a desire for growth and destine to succeed(Hamel & Prahalad, 2010). This will consequently add considerable value to the brand’s equity (Aaker & Joachimsthaler, 2000) in the long-term. If implemented correctly Its points of difference(Carpenter & Nakamoto, 1989) will become USP’s (Unique Selling Points) that eventually increase sales and profitability. Staples core competencies need to be sustainable and replicable so they can be transferred to new markets(Deiser & Ebooks, 2009). These, supported by the management’s ability to raise capital domestically as well as internationally will determine whether it can remain competitive within its sector. The report suggests for an aggressive expansion in embryonic stage industries to exploit Kim’s ‘blue ocean’ opportunities(Kim & Mauborgne, 2005) and benefit from the first-mover advantage(Kerin, Varadarajan, & Peterson, 1992). Furthermore, a cautious entry in the already fragmented international markets is proposed. Most promising regions identified are Eastern and less Western Europe, South America, South Africa and China. Domestically Staples needs to review its store efficiency by reducing number of stores in some areas and introduce new in other regions. It will also need to cope with employee efficiency and forming favourable relations with stakeholders that will eventually ask for more dividends in the near future because of the increasing sales. Its product portfolio has to be updated with the introduction of new and innovative products with focus given on IT services and hardware equipment. Branding of the company should be adaptive to tackle the cultural and economic differences of its diverse markets. However, same brand offerings need to exist especially in western culture countries were usage and buying patterns are similar in order to emanate a rigid and crystal-clear brand proposition that will form favourable brand perceptions. The barriers towards this plan will be the Staple’s ability to understand the degree of difference in every other market it operates; the capability to finance the expansion, ability to cope with taxation, tariffs and quotas and the aptitude of being able to make brave decisions - such as digesting its current furniture SBU - that dilute cumulative performance
List of & Tables Figures
S E C R O F 5 ' S R E T R O P 3 e l b a T
S I S Y L A N A E L P E E T S 4 e l b a T
d e u n i t n o C S I S Y L A N A E L P E E T S 5 e l b a T
Table 6 STEEPLE & STRATEGIC CHOICES Further Recommendations – Linking External Audit with Strategy Social Audit
•
Results
Creation of an integrated monitoring and development internal mechanism, which will constantly update information and inform customers on promotions and worth-knowing news. The absence of loyalty in the office
supplies sector springs from the nature of products which are most commonly identical. This is a sign for Staples and its differentiation strategy to focus on pricing and quality –augmented product - as the core product cannot be
differentiated significantly in terms of usage. T R E V N O C
• Staple’s
business model has to be reviewed when the company decides to
penetrate new markets with non-western culture. For example Staples’ green products will probably add little value to less environmentally concerned countries. Furthermore buying characteristics vary significantly from one culture to another as well as usage purposes of products, purchase-decision makers and product expectations. Adapted product offerings, customised communication messages and practices can minimize the negative cultural
Integrated
effect
Marketing Communications Political
• Reallocation
Environment Audit Results
of some of its current associates to new stores for improving
efficiency, as well as focus on the training and development of those to T improve their performance and revenue per employee. R E V N • Strategically expand and take advantage of economies O C
of scale that a first
mover advantage suggests from unexploited countries.
Internal Processes & Strategic Options Economic
•
Consumers expect huge discounts and significant price cuts. To avoid the
Environment
economic bubble Staples adopted a Differentiation strategy as proposed by
Audit Results
Porter which has paid out well initially. However, this strategy may become T R E V N O C
obsolete through time and new innovative products along with a coherent revised strategy need to be implemented . Staples will also find it difficult to
secure external funding from banks and financial institutions as these show sign of hesitance in lending money. If however Staples, succeeds to secure an
Strategic options
amount this will be under extremely favourable credit terms that are in place
&Pricing
today.
Strategy
Social
• For Staples to overcome any ethical ‘fence ins’ that may cause brand
Environment
infringement and devaluation, the company will need to review its policy
Audit Results
statements and Code of Ethics to update it with clear and consistent
Internal
T R E V N O C
messages as well as continue its rigorous program of training associates and managers on ethical issues.
Regulations & TQM Legal Environment Audit Results
• Due
to Legislative changes Staples runs the risk of being legally prosecuted for
an array of proceedings. Whether this is the US market or abroad, Staples
T R E V N O C
needs to customize its employment terms and conditions and ensure that all its workers are working under a safe environment
Structure & Internal Environ. Environmental
•
Increasing concerns for environmental pollution caused demand for eco-
Environment
friendly products to increase and exposed companies that practised non-
Audit Results
environmentally
friendly
practices.
Staples
commitment
to
behave
responsibly against the environment and the community has paid out well as the receipt of several awards and prizes has empowered the brand name and gained recognition among consumers and organisations that praised Staples efforts. This corporate citizenship approach however, will not deliver the same results in the near future . Staples worked hard to comply with
regulations and co-operates closely with activist groups that protect the environment like the FSC and WWF. This soft demand for eco-friendly T R E V N O C
products happened under a steady economic climate where all other variables in the economy were held constant. Nowadays economies around the world are experiencing difficulties and buyers’ disposable income for spending was reduced. This added-value that Staples Eco-Easy range and environmentally friendly products offered to customers is not valued the same as before. Consumers, affected by the crisis, turned to non-complicated
products that are simple and straightforward with no extra hidden costs and Review ‘points of
carry no premium pricing e.g. a set of pencils that is made from recycled
difference’
paper and costs double the price of a regular one.
Technological Environment Audit Results
T R E V N O C
•
The company will need to find appropriate suppliers of breakthrough products and ideas that will give Staples a competitive advantage . An
example can be a pen that is also a voice–recorder which can be of extreme importance to students
Product Portfolio
H T W O R G S E I R O G E T A C T C U D O R P 7 e l b a T
N O I T U B I R T N O C L A N I G R A M & N O I S I V I D Y B S E R O T S 8 e l b a T
S N O I T A R & S E V I T A V I R E D L A I C N A N I F 0 1 e l b a T
S I S Y L A N A T O W S 1 1 e l b a T
S E C I O H C C I G E T A R T S S I S Y L A N A S W O T 2 1 e l b a T
N O I T A M R O F Y G E T A R T S W E N s ' S 7 y e s n i K c M 3 1 e l b a T
K R O W E M A R F s ' C 2 1 4 1 e l b a T
N O S I R A P M O C T E K R A M L A B O L G R G A C 5 1 e l b a T
2 1 0 2 3 0 0 2 S N O I G E R F O H T W O R G 6 1 e l b a T
2 1 0 2 1 1 0 2 0 1 0 2 9 0 0 2 8 0 0 2 7 0 0 2 6 0 0 2 5 0 0 2 4 0 0 2 3 0 0 2
X I R T A M S S E N E V I T C A R T T A Y R T N U O C L A N O I T A N R E T N I 7 1 e l b a T
S H T G N E R T S S ' Y N A P M O C S V S S E N E V I T C A R T T A Y R T N U O C 4 e r u g i F
Y G E T A R T S E D O M Y R T N E 5 e r u g i F
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