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Staples Sets Its Sights on Winning Back Market Share from Amazon

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Tom Conophy announces IT restructuring plans

Staples (SPLS), a company that dominated the office supply business for decades, has lost its sheen over the last couple of years. The company’s CIO (chief information officer), Tom Conophy, now plans to revamp the company and up its game against its all-time biggest competitor, Amazon (AMZN).

According to a recent report from the Wall Street Journal, Mr. Conophy announced the company’s plans to make some serious changes and introduce technological initiatives to ensure it survives today’s evolving retail environment.

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The power of data

Conophy understands the importance of data and how data manipulation can help reinvent business strategy, yielding better results. The company will aggressively embrace data analytics and hire new IT talent to explore big data opportunities. The intention is to shelve old traditional IT functions and adopt a more innovative, aggressive IT approach.

eBay working toward structuring its data

A similar approach was adopted by eBay (EBAY) when it suffered a revenue growth slowdown due to Google’s search engine optimization, or SEO, change. As the chart above shows, the number of active buyers on eBay’s site leveled out during the last few quarters.

Alibaba (BABA), too, is investing in technology to overcome its ongoing counterfeiting issue. Both of these e-commerce players have realized that technology must play a key role in better business strategies that will improve results.

To gain diversified exposure to Amazon, you can invest in the PowerShares QQQ Trust, Series 1 (QQQ). QQQ invests 3.8% of its holdings in Amazon.

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