Since there is already an actual Home Depot SWOT analysis (SWOT) online, my task includes the examination of the many differences along with compiling what has been found online on many different sources such as the Home Depot Facebook page, Google Reviews. Looking at the previous SWOT analyses from the company and the outlook of the company that consumers post in online reviews are important. Instead of rewriting what has already been written I will look at all these and provide a new list of what the consensus is on the strengths, weaknesses, opportunities and threats to Home Depot.
Home Depot SWOT: Strengths
Whilst looking for information on Home Depot, the Home Depot SWOT analysis came up, with that the company saw as their own issues. In the Home Depot SWOT analysis they state that their strengths are: patents, strong brand name or reputation among customers, high quality products and services, new unique products and services, location of company, marketing and advertising strategies, cost advantage (low costs), good customer service, and well-trained staff. However, looking at the reviews and comments on the Home Depot Facebook page it can be noted that the customer service all around the country lacks. Consumers complain of not being able to return items, even when an associate messed the item up. The companies locations are easy to reach with there being multiple stores within a location compared to one Lowes store however the stores are rather bland and associates can be hard to find. Also associates tend to not know much about the products they sell. Many of the products Home Depot sells are of a high quality, and they carry the same warranties as Lowes – if the item breaks return it to the store.
Home Depot SWOT: W...
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...er friendly so they have people who want to work there, that are happy working there and ultimately happy customer. Home Depot has many weakness, many strengths, many opportunities and threats, however under their new leadership they are changing for the better bringing in new consumers who where loyal to Lowes or Ace with cheaper products, more knowledgeable and friendlier staff and even kid’s classes in a bid to reach out to younger consumers.
Works Cited
Wikipedia.org. Home Depot Retrieved from: http://en.wikipedia.org/wiki/Home_depot#The_Home_Depot_today
Home Depot SWOT. Retrieved from: www.homedepot.com/hdus/en_US/DTCCOM/HomePage/PRO/Pro_Business/Docs/SWOT-Analysis.pdf
Home Depot Facebook Page: Consumer comments. Retrieved from: https://www.facebook.com/homedepot
Measured up: Consumer complaints Retrieved from: http://home-depot-reviews.measuredup.com/15
Home Depot is the brainchild of Bernard Marcus and Arthur Blank and came about after both men lost their job in the home improvement industry in 1978 (Parnell, 2014). Home Depot has acquired several smaller home improvement stores in both the U.S. and abroad through the years which enabled it to position itself as the world’s largest home improvement chain (Parnell, 2014). Home Depot focuses on the do-it-yourself segment of the market and sells sells tools, construction products and services. Marketing is a strong point for the company. They are able to maintain a competitive advantage by keeping themselves available to their customers at all times. Home Depot has been using both online and offline marketing efforts. The internet has become a very useful tool for the company and part of the reason that they are leading the market in DIY stores. Home Depot currently provides DIY videos on YouTube and Vine that cover current topics that consumers are likely to be interested in. They also have social media pages on Facebook and Twitter, where they have a huge following. They provide online communities where actual employees answer consumer’s questions and provide assistance on
In the early 2000’s Lowe’s was rapidly intensifying its presence nationwide. The company carried a varied assortment of home improvement products and catered to the needs of retail as well as commercial business customers. Lowe’s expanded their reach by acquiring a 41-store chain, Eagle Hardware and Garden, and engaging in a strategic alliance with HGTV to obtain a more profound existence in their market (Rouse, 2005). By 2004, Lowe’s operated almost 1,000 stores with plans to continue expansion across the nation (Rouse, 2005). The company has a core competency in helping customers meet their home improvement needs at a low price. In order to use this core competency to gain a competitive advantage, the company has focused on key functional strategies. To continue their success, Lowe’s must specifically focus on marketing, logistics, and human resource management strategies.
Rivalry. Home Depot, Ace Hardware and Menards are the biggest competition that Lowe’s faces. With Home Depot being the large...
The Home Depot is recognized as being the leader in the home improvement retail industry by combining the economies of scale inherent in a warehouse format with a level of customer service unparalleled among warehouse-style retailers. ("Home Depot to", 1999)
Home Depot’s slogan, “More saving. More Doing.”, promotes Home Depot’s marketing strategy with more appeal for customers with less money to spend. Home Depot carries major brands but also carries Home Depot exclusives and proprietary brands which save customers money. Home Depot carries major brands like Dewalt, Hampton Bay, Homelite, and Martha Stewart Living. They also carry proprietary brands such as Ryobi, Rigid, Behr, LG and Toro.
The constant renewal and the work to sustain culture that produces good products, employees, and customers has helped Home Depot maintain its competitive advantage and lead the retail building industry.
Home Depot was founded in 1978 by Bernie Marcus and Arthur Blank in Atlanta, Georgia. With their store, Marcus and Blank revolutionized the do-it-yourself home improvement market in the United States. Home Depot began as a very basic store, operated in a large, no-frills warehouse. Home Depot carries over 35,000 products, with national brand names along with the Home Depot brand. At the start, Home Depot was able to offer exceptional customer service with knowledgeable employees who could guide customers through home renovation projects. Since its opening, Home Depot has experienced incredible growth, and today is North America's second largest retailer, and the largest home improvement retailer. Internationally, Home Depot has expanded into Canada, Mexico, and is beginning to operate stores in China. Home Depot's competition includes Sears, Ace Hardware and Lowes (the main competitor).
Lowe’s Companies, Inc. is the fourteenth largest retailer in America, and overall the world’s second largest home improvement retailer. They are the 108th ranked corporation on the Fortune 500 top corporations list. With an impressive in store stock of 40,000 home improvement items on hand, ranging from lumber to Home décor items, plus an additional 400,000 home improvement items available through a special order program. Lowe’s provides a onetime stop for all home improvement needs, for both the Do-It-Yourselfer, and the ever-expanding market of the Commercial Business Customer.
Home Depot is built on the principle of creating value for our stockholders while never forgetting our values. We seek to be profitable, responsible and balance the needs of our communities. Throughout our company, our associates are challenged with finding ways in which we can provide the best products for our customers, provide the best possible work environment for our associates, have a positive impact on the communities in which we operate, and provide excellent returns for our stockholders.
Since the home improvement market is highly competitive, Lowe’s needs to apply the best strategies to deal with Home Depot’s rivalry. This rivalry is as a result of the identical nature of the products handles by the two companies. The company should structure its distribution framework to pull down costs as the firm adjusts to changes in demand. The company should set a 6-month budget for research and development projects. To outperform Home Depot, Lowe’s should seek to expand its in-store services as well as the international operations.
Established as the older company of the two, Lowe’s ranks forty-second as a Fortune 500 company. Established in 1946 as a small hardware business, Lowe’s has grown into a 40,000 product, global market enterprise that consist of 1,710 stores nationwide expanding into the countries of Canada, Mexico and Australia (Lowe's Internal, 2010) Home Depot, founded in 1978, is the fastest growing retailer in the United States. Ranked twenty-ninth as a Fortune 500 company, Home Depot continues to remain the number one do-it-yourself retail store in America. These two companies may sell products of the same nature, but comparing their Code of Ethics is their way of setting themselves apart. (Home Depot Internal, 2009)
Conclusion: Given the current economic status the home improvement industry is in a low spot with sales. With the decrease in building new homes we have to focus mainly on home improvements. The three strong points we have against existing rivalries are our great locations, quantity of quality products, and convenient customer service. With these great qualities we can move ahead and stay ahead of our competitors during these times.
Second, the rapid development of the Home centers such as The Home Depot, with prices 30% less than the traditional hardware store made Black & Decker to lose market share to Makita. As per Exhibit 2 we could notice that in the home center channel that represent 25%of the trades...
As a comparison in the industry, Lowe's culture is much more low-profile, collaborative, and collegial. However, many investment reports show that historically, Home Depot often is in front of Lowe’s (Grow 2006).
customer service while Wal Mart is the almost the opposite. Wal Mart has a negative atmosphere