Questions Favorites Office Depot
All of us will go over the Staples-Office Depot case. How will you characterize the industry framework? Oligopoly
Small number of big companies, with distinctive entry limitations, high competition and rising demand, competitive prices, present on nationwide scale, useful cost composition.
1 ) Are there limitations to admittance that maintain this framework? The wide-ranging present of actual industry competitors, the cross price elasticity. Financial systems of level, advertising, programs of distribution, purchasing
2 . What is the FTC looking at to evaluate whether or not the merger is ant-competitive? If the merger with meddle with the competitiveness of the market, if it is likely to make it more difficult for new business to arise, in case the prices can rise improperly, the market attentiveness changes,
3. What is the relevant industry? Which elasticity measure is critical to specify this market? The kind of market in such a case are the forty two metro areas in which there may be presence of Staples and Home Website, the cross price elasticity is critical to define this kind of marketвЂ¦. In markets where they are both present prices are more competitive and lower in assessment with markets in which not really. Defined by the product market and the geographical market
Superstores in metropolitan areas is a relevant marketвЂ¦
4. Just how is the HHI affected by the merger? What makes there various HHI's in this instance whereas in last school we brought up вЂthe HHI'? The HHI will suffer a fantastic rising impact with the merger, in some cases the merger will determine in a completely share to get Staples, you will find different HHI because we are talking about several geographical areas, in some there exists presence of only to competition, in other there is certainly 3
5. What are Staples and Workplace defense quarrels?
Which the merger gives field intended for other competition to improve their very own market that they will share best purchasing procedures, that they will power suppliers to supply better discounts.