Home depots strenght and weaknesses
There are interrelationships among the key internal and external factors that SWOT does not reveal that may be important in devising strategies.
Changing consumer buying behavior from online channel could be a threat to the existing physical infrastructure driven supply chain model.
Using this, we look at what might be in store for Home Depot going forward.
Home depot pestle analysis
There are interrelationships among the key internal and external factors that SWOT does not reveal that may be important in devising strategies. If these encounters are negative they will no doubt have an adverse impact on company image and bottom line. Specialty design stores, discount stores, local, regional, and national hardware stores also compete for business. For example changing environmental regulations can be both a threat to company it can also be an opportunity in a sense that it will enable the company to be on a level playing field or at advantage to competitors if it able to develop the products faster than the competitors. Company number In fiscal , the company had over 1. This is a major concern, especially because the company currently has minimal presence in overseas markets. This investment has opened new sales channel for The Home Depot. However, the risks to its business should not be overlooked. Opportunities for The Home Depot — External Strategic Factors New customers from online channel — Over the past few years the company has invested vast sum of money into the online platform. High attrition rate in work force — compare to other organizations in the industry Home Depot has a higher attrition rate and have to spend a lot more compare to its competitors on training and development of its employees. The company has not being able to tackle the challenges present by the new entrants in the segment and has lost small market share in the niche categories. In spite of being highly dependent on macroeconomic factors for success, the retailer managed to stand its ground during the recession. Financial planning is not done properly and efficiently.
Thanks to products like its Makita and Milwaukee Lithium-ion power tools; Home Depot is well positioned to take advantage of the growing demand. Increasing trend toward isolationism in the American economy can lead to similar reaction from other government thus negatively impacting the international sales.
In every market it serves, there are a number of other home improvement stores, electrical, plumbing, and building materials supply houses and lumber yards. New technologies developed by the competitor or market disruptor could be a serious threat to the industry in medium to long term future.
In fiscalthe company had over 1. SWOT analysis may lead the firm to overemphasize a single internal or external factor in formulating strategies. Highly successful at Go To Market strategies for its products.
Disclaimer: This case study has been compiled from information freely available from public sources. In spite of being highly dependent on macroeconomic factors for success, the retailer managed to stand its ground during the recession.
The additional costs of cyber security spending could increase operating expenses, as well. The current asset ratio and liquid asset ratios suggest that the company can use the cash more efficiently than what it is doing at present.
based on 62 review