Aaa Office World Case Essay

1661 Words Apr 24th, 2015 7 Pages
When a certain point is reached regarding a company’s success, a set of different opportunities arise and partnerships may unfold. However, with every possible strategy available, risks and benefits also come into play; without discarding any of them beforehand, every option is a strong candidate until a final decision is made. In this case study we will analyze the current business strategy pertaining to AAA and the offer from Business Center Inc.
In order to define what AAA should do in this kind of a situation we must first look at the background of the company. The company has been in business for 28 years and their sales volume is about $40 million which speaks volume about the company’s experience and
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In light of this, if Walmart were to ask Johnson & Johnson for a private label brand of diapers to sell next to Huggies, a true dilemma would be in place. On one hand, acknowledging to their request could seriously affect Johnson & Johnson’s current pricing strategy by lowering it tremendously, and on the other, a decline to acquiesce to their requests could mean the loss of thirty percent of their total sales from one day to the next.
Target Market
AAA Office World sells directly to three main buyers, these are: regional stationery suppliers, local stationery suppliers, and Business Center Inc. There are ten regional stationery suppliers, each have about six branches and sell directly to large corporations and some retailers. Local stationary suppliers, on the other hand, have one wholesale and about three or four retail locations. Lastly, BCI has one hundred and fifty stores, with most of their sales coming from local businesses and walk-in customers.
As it stands, AAA holds a well-established position within its niche target market. With a strong customer base due to its high quality and mature products, a strong connection to its customers has been made throughout the many years of service. Separated from others, AAA tends to have differentiated product lines regarding some physical feature and aspect of the product itself. This company

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