How would you classify the market structure of the office superstore industry in 2015? Who are the competitors?

Read the Staples and Office Depot 2015 Case , then answer the questions below.

1. How would you classify the market structure of the office superstore industry in 2015? Who are the competitors? What are the characteristics of this industry that lead to this conclusion? Based on the textbook chapter that discusses this market structure, what is the “type” of the market structure?

2. What barriers to entry help maintain the industry structure? (refer to the chapter describing the market structure).

3. According to the FTC, what is the relevant market for this case? Who are the customers? Should retailers that sell, but do not specialize in office products, be considered as part of the market? What evidence supports this conclusion?

4. Explain what the Herfindahl-Hirschman Index (HHI) is calculated. What are the HHI guidelines with respect to mergers? How will the HHI be affected by the merger? What shoulb be the decision based on the guidelines?

5. What arguments could Staples and Office Depot make in defense of their merger?

6. Use a search to find out how the 2015 case was resolved.

Requirements: long