Executive SummaryIn this formal report I will compare two large companies, Staples and Circuit City. Both are sold computer accessories and electronics such as televisions, computers, printers and inks etc. This report will provide in-depth details on why Circuit City went out of business and Staples is still in business. This formal report will show the history of Staples and City Circuit. Why is Staples still in business today and why did Circuit City go out of business? What was the business model or strategy used by Staples and the strategy used by Circuit City? This report will analyze the history, business strategy and financial history of the companies. The case also highlights the importance of sound strategic business decisions, target marketing and customer input. Furthermore, the case highlights the need for a retailer in such a competitive market, with both physical and online competitors, to find its competitive advantage and stick to it. BackgroundHistory of Staples I will start with the history of Staples. Myra Hart, Leo Kahn and Thomas G. Stemberg founded Staples in the late 1980s. The company opened its first store in Brighton, Massachusetts on May 1, 1986. Staples, Inc. is the largest operator of office supply superstores in the country and offers a large selection of products at low prices, primarily to owners of small businesses. Staples pioneered this concept in 1986 and grew rapidly after opening its first store in the Boston area. Subsequently the company also expanded outside the Northeast; in the early 2000s, there were approximately 1,300 Staples stores located in both major metropolitan areas and smaller markets in 45 states, the District of Columbia, and 10 Canadian provinces. In addition to retail business......paper center......superstore implementation. These companies, however, were able to better see the advantages and disadvantages of the hypermarket and leverage that knowledge into a rapid growth rate and higher return on equity than Circuit City. On November 3, 2008, Circuit City announced that it would close 155 stores and lay off 17 percent of its workforce by the end of the year due to its continued struggle for profitability. Days later, 700 corporate employees were laid off from the Circuit City headquarters and the remaining 1,000 corporate employees were merged into one building in an effort to further reduce costs. On November 10, 2008, Circuit City filed for bankruptcy. Circuit City had lost more than $5 billion in stock market value over the past two years. The company's goal was to exit bankruptcy protection in mid-2009. Fig 2. Circuit City Financial Statement