Grainger Case Analysis

Good Essays
In a letter from the chief operating officer to the company’s shareholders, James Ryan articulates Grainger’s long-term objectives are: growth, productivity, foundation, and shareholder returns. (Grainger Website, Shareholder Meeting and Proxy Information, 2015) James Ryan relates these objectives to their mission and vision by stating, “We have and will continue to anticipate their needs, manage this business for the long term and have the best team in the industry to serve them.” The mission and vision of Grainger is ensuring they have the most talented employees to get the job done, just as Ryan references.
To accomplish the company’s long-term objectives the follow strategies have been put into place: forward/backward/horizontal integration,
…show more content…
In order for W. W. Grainger to diminish their weakness and threats, they must prove their competitive advantage against their hefty competition. When you analysis Grainger’s competition, they all sell the same products. An example would be an HVAC (heating/cooling system) or a drill, the competition has the same products and specially the same brand. Therefore, they need to rely on their employees, diversity, and acquisitions to beat the competitors.
W. W. Grainger should use the Position Strategy that is presented by Bingham. Grainger meets the criteria to be successful in the position strategy category. The maintenance/repair product industry is stable and more specifically as discussed earlier Grainger is financially stable. The company has multiple resources such as their talented employees, their partnerships through acquisitions, and their partnerships with strategic organizations such as National Sales and Pi Sigma
…show more content…
My recommendation is to create a product development strategy with power tools as the company’s new product focus. According to an online article, “A new study from The Freedonia Group is forecasting global demand for power tools to reach $32.9 billion by 2018, indicating a growth rate of 4.8% per year.” (Hardware & Building Supply Dealer, 2015) The article further states that the demand for power tools will nearly double over the next three years. “The country is a significant market for power tools because it is home to substantial tool using industries such as construction, general manufacturing, and motor vehicle production and repair," said analyst Kyle Peters. "In addition, there is widespread interest in do-it-yourself activities, resulting in a sizable consumer market.” (Hardware & Builders Supply, Analyst Kyle Peters,