Staples and Office Depot Again Propose a Merger

How would you classify the office superstore industry? Who are the competitors? What are the characteristics of this industry that lead to this conclusion? How has the office superstore market changed in the 18 years since Staples and Office Depot originally attempted to merge?What barriers to entry help maintain the industry structure? If the merger were to be allowed, how would you characterize the merged firm's own price elasticity in a geographic market that contained only that firm? How would this change over time? 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? How is the Herfindahl-Hirschman Index (HHI) affected by the merger? Are the HHI levels in the case indicative of high industry concentration? How might the merger lead to cost reductions for Staples? Could this be beneficial for Staples' customers? What arguments could Staples and Office Depot make in defense of their merger?