Swot Analysis Of Home Depot

Home Depot has clearly set itself up to be successful in the recent upswing in the housing markets. Their technology upgrade has proven to be successful in keeping stores stocked and employees more engaged with helping the customers.

The Home Depot mission statement reads as follows: “The Home Depot is in the home improvement business and our goal is to provide the highest level of service, the broadest selection of products and the most competitive prices. We are a values-driven company and our eight values include the following: excellent customer service, taking care of our people, giving back, doing the “right” things, creating shareholder value, respect for all people, entrepreneurial spirit, and building strong relationships.”

While Lowes has a smaller debt-to-asset ratio (~.64 compared to Home Depot’s ~.69) and a smaller debt-to-equity ratio (~1.76 compared to Home Depot’s ~2.24), the future liquidity and solvency of the company could come into question due to Lowes’s low current ratio, which has consistently trended downward, dropping from ~1.28 to ~1.16, over the past three years.

Home Depot is the fastest growing retailer in the U.S. by some accounts. It has a fascinating history of innovation and entrepreneurship. The company had some difficulties in the mid-2000s that some attribute to cultural clashes. However, during this period the company was able to take full advantage of the housing boom. Yet when the bubble burst, Home Depot was forced to claim substantial losses. Despite these loses Home Depot has weathered the storm fairly well and is in prime position to take advantage of an economic recovery; if it ever comes.

The Home Depot knows that they must stay on top of technology and management must be able to organize this function in a way that surpasses the competition, pleases the customers, and keep the employees satisfied.

Strategic planning requires all levels of an organization, from the head of the company to the most junior member, to think about where the organization is today and how they can influence the organization to move forward in a “positive” manner to attain its goals (profit, growth, downsizing, etc.). One method used in strategic planning is for an organization to conduct a “Strengths, Weakness, Opportunities, and Threats” (SWOT) analysis. Just as the name implies, a SWOT analysis looks at the four dimensions that can affect an organization. One business that can benefit from a SWOT analysis is Lennar Home Builders, Inc. This assignment will focus on one of the largest national offices for this company, located in Miami, FL. First, the paper will describe the history, products, and major competitors of one of the largest home builders in the country. Next, the focus shifts to create a SWTO analysis detailing the strengths, weaknesses, opportunities, and threats that may affect the organization. The assignment begins with a brief discussion on Lennar Homes, one of the most successful home builders in Florida and the United States.

A strength in a SWOT analysis is something beneficial to the company while being an internal factor that they control. Two strengths of Bed Bath & Beyond are their registry service and personalized products. Bed Bath & Beyond offers their customers wedding, commitment ceremonies, baby, housewarming, anniversary, college, and birthday registry services. A registry is a listing of items, or a “wish-list”, of specific products that other people can purchase for you. An advantage of a registry is that it can be done electronically and is efficient for both the buyer and receiver. It is efficient because it is one central location people can go to purchase specific desired items. Bed Bath & Beyond’s most popular registry service is its wedding registry. It is regarded as the best registry by Kristi Kellog, in her article, “Where to Register: The 50 Best Wedding Registry Sites & Stores”. Kellog states, “When it comes to one-stop shopping convenience, few retailers can beat Bed Bath & Beyond. It’s the perfect place to scan all of your essentials, like housewares, linens, and appliances. And since they offer tons of different brands, you can select must-haves at a range of different price points. Plus, with free announcement cards to tell friends and family where you’ve registered, expert consultant to help you decide which items to pick, and a competition program that lets you purchase your remaining gifts at a discounted price after the big day, the retailer is a

Home Depot is the world's largest home improvement retailer operating in 45 states, Canada, Chili and Puerto Rico. Home Depot stores aim to serve both do-it-yourselfers and professional contractors with home improvement superstores carrying between 40,000 and 50,000 different products. Home Depot has also been listed as one of Fortune's most admired specialty retailers for the past six years. In order for companies to succeed in the competitive current marketplace they must consider not only the bottom line and their investors but also their impacts on the community, their employees, and their customers. Home Depot was founded on the idea that treating employees well is an important responsibility. Home Depot believes employees that are

The Home Depot’s mission statement states: The Home Depot is in the home improvement business and our goal is to provide the highest level of service, the broadest selection of products and the most competitive prices. We are a values-driven company and our eight core values include the

In 2003 Home Depot implemented a plan to remodel and refurbish all out dated stores including in-store checkout terminals, customer service call boxes, a 24-hour customer service hotline and more. After these projects were completed, Home Depot implemented new ventures that would attract new customers such as the Design Center in North Carolina that focused on women shoppers with high end merchandise design and decor. They also added a 6000 square foot Smart Home, designed to showcase new innovative products that doubled as housing for 10 engineering students that does research for Home Depot. By 2010 Home Depot had a total of 2,245 operating stores. Because of operational differences Home Depot was forced to close all its stores in China,

Home Depot's varied selection of products and services and its own extensive network of stores permit it to boost sales and increase success. Home Depot's business stretches across a network around 2,269 stores over the U.S., Canada, and Mexico. Its store inventory contains almost 30,000 to 40,000 different sorts of building materials, do-it-yourself supplies, home appliances, and backyard and garden products. It provides its products under various categories, particularly floor coverings, tools, paint, lumber, kitchen and bathroom, plumbing, interior garden, home appliances, building materials, hardware, decoration, outdoor garden, millwork, electrical power, and

The housing market started to rise interest rate and long term rates are under-control.In 2015, the traffic trends started to rise in a consistent growth which appeared to support further gain in key business metrics for 2016. It booked $371 million transactions and still growing more than 4%. The internal corporate management expenses raised in a slower pace than the revenue growth. It's allowing Home Depot expand its margin and improve its profitability. Home Depot has shared its bounty with investors. After sharing it's bounty with investors that boosted its dividend by double digits percentage in 2015. The company believes that in the year of 2016 it will do so again. They expect to pay a better dividend and attract more investors. Their

Home Depot’s strategic framework focuses on creating value for their customers by connecting the business end-to-end. Under this framework, Home Depot is centered on Customer Experience, Product Authority, and Productivity (Home Depot, 2016). Thus, they have established a targeted customer base and will focus on ensuring customer service continues to evolve to mirror the changing needs and expectations of their customers (Home Depot, 2016). Ultimately, there is a fine balance between delivering an innovative product that is of premium quality at a good value, but this is their goal under product authority. Last, productivity is impacted due to their coordination with their supply chains and the stores (Home Depot, 2016).

As a firm, in a competitive industry, it is imperative Savage Industries (fictitious business) outshines competitors. While failure rates may be high in this competitive field of Business 2 Business marketing, partnerships with this firm in particular tend to be beneficial far beyond just the scope of a typical business relationship. All partners of the brand tend to become like family, and the brand truly cares about partners and their success rates. Not only is Savage Industries process unique, but also results far exceed competitors, and the retention rate is well above the industry standard, at nearly 88%. Also the employee retention rate is on the rise, and has been on an upward trend.

This is a SWOT Analysis of IKEA. Crandall, Parnell, and Spillan (2013) states that a SWOT Analysis is “based on a systematic, comprehensive analysis of internal attributes, also referred to as strengths and weaknesses; and of factors external to the organization…” (p. 84).