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Aaa Office World Case

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Introduction
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.
Background
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 market share in the industry for office and stationery products which is specialized in the production and sale of file folders, file markers and labels and a variety of indexing systems. AAA has a big name in the industry due to its diverse use which is due to the variety offered by the company which includes files for oversized blueprint and engineer drawings, see-through files for medical markets and grease proof and water proof files for marine, oil field and other hazardous environmental markets. However, the raw material for the FILEX line of file folders are easily available and even though the competitors are small, they are always ready to cut prices in order to have more market share. The amount of sales with respect to Business Center is worth 30 percent of the total sales which makes the company the biggest client for AAA. Considering that the 150 retail stores where Business Center sells its products, there are discussions within said stores about possibly forming potential buying groups, in order to purchase large quantities at discounts.

Problem
Stasia Acosta is the marketing manager of AAA Office World, who now has

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