Professional customers run the gamut from individual contractors to construction managers. Investors in Home Depot stock should be pleased that their hard-earned savings and wealth are in good hands, just like the retailer's everyday customers. CEO Craig Menear highlighted the success of investments made over the years that have enhanced the company's ability "to quickly adapt to shifts in customer needs, preferences, and behaviors." Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. That all adds up to evidence of a significant competitive advantage for the leading retailer in the home improvement industry. Employees are equipped with handheld devices that can order products for customers while they're shopping in the store, for example. Lowe's. "Lowe's Companies, Inc. "The Home Depot builds an omni-channel supply chain." This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here! Demitri covers consumer goods and media companies for Fool.com, as well as broader moves in the economy. By having an effective human capital Home Depot gains competitive advantage since skilled and effective employees lead to improved customer satisfaction which in turn leads to building customer loyalty and this translates to continued organization growth and success. You can help! In contrast, the “do-it-yourself” (DIY) retail customers prefer to buy raw materials and complete their projects independently. This article may not be reproduced, distributed, or mirrored without written permission from Panmore Institute and its author/s. In this regard, the threats identified in this SWOT analysis show that Home Depot must emphasize stronger competitive advantage and global expansion. In referring to these customers, management from both companies distinguishes between two broad categories: retail and professional. . Home Depot has been gaining from its focus on Professional Customers or Pro Customers. In this regard, this SWOT analysis shows that Home Depot’s weaknesses are linked to its supply chain, business development, and market strategies. This aspect of the SWOT analysis framework deals with the organizational characteristics that make the business effective. Distributed Applications (DApps) are software applications that are stored mostly on cloud computing platforms and that run on multiple systems simultaneously. In the case of Home Depot, the following are the main opportunities: Home Depot has the opportunity to globally expand its business and supply chain. "Form 10-K 2019." "History." talent to gain a competitive advantage in the Do It Yourself industry. Discuss how the leadership at Home Depot intended to use its organizational + free trial month | Hulu promo codes, Joe Biden Had Big Ambitions for Taxes; Now Reality Sets In, Ventilation Is Key to Battling Covid. Accessed March 21, 2020. The company has created various entry channels into the organization that attract individuals who are talented and once the individual becomes an employee the company has programs that enhance leadership and functional skills (Silzer & Dowell, 2010). The needs of customers and employees come first, while those of managers and executives come last. This aspect of the SWOT analysis framework deals with industry or market characteristics that support business development. They compete for a shared customer base across the U.S. and Canada. Home Depot’s Organizational Culture: An Analysis, Home Depot’s Stakeholders: A CSR Analysis, Home Depot’s Vision Statement & Mission Statement, Home Depot’s Generic Strategy, Intensive Growth Strategies, Home Depot Five Forces Analysis (Porter’s Model), Home Depot’s Marketing Mix (4Ps) Analysis, Home Depot’s Organizational Structure Analysis, Home Depot’s Operations Management, 10 Decisions, Productivity, Home Depot PESTEL/PESTLE Analysis & Recommendations, Amazon.com Inc. SWOT Analysis & Recommendations, Sony Corporation’s SWOT Analysis & Recommendations, Walmart Inc. Five Forces Analysis (Porter’s Model), Recommendations, Amazon.com Inc. Five Forces Analysis & Recommendations (Porter’s Model), Burger King SWOT Analysis & Recommendations, Nike Inc. SWOT Analysis & Recommendations, Whole Foods Market SWOT Analysis & Recommendations, McDonald’s SWOT Analysis & Recommendations, Walmart’s Generic Competitive Strategy and Intensive Growth Strategies, Home Depot’s cost minimization efforts based on its generic strategy, Message from Supplier Diversity Leadership. Lowe's. The format of the report is to be as follows: Silzer, R., & Dowell, B. In fact, the company is taking a different tack than many rival national retailers. He covers consumer goods companies for The Motley Fool. Home Depot’s Weaknesses (Internal Strategic Factors) Home Depot’s weaknesses are linked to its business nature, focus, and supply chain. Image source: Home Depot investor presentation. In addition, any slowdown of the U.S. economy is a major threat because the vast majority of Home Depot’s revenues are generated in the American market. The issues identified in this SWOT analysis of Home Depot show that the company must focus on global growth and expansion. "2007 Annual Report," Page 4. Today, their share-price performance looks pretty much the same year-to-date. Assignment #1 Chap 17 They Can Do It! Digital sales are up 20% over the last six months and make up 6% of Home Depot's entire business (not far below the 8% level that marks e-commerce's share of all of retail). For example, Home Depot suppliers avoid doing business with Lowe’s because of fear of losing business with Home Depot. In addition, Home Depot’s close relationships with suppliers ensure cost-effectiveness and economies of scale. For customers who are also trade professionals, they're seeing expanded next-day delivery, even of bulk items like concrete. "2018 Annual Report," Page 1. A look at Talent Lowe's. Strategic Management: Integration, merger vs acquisition, Analysis of financial statements: Lowes vs Home Depot, Information Systems for Decision-Making Postures. Or, in the case of a professional customer, they may identify a product in-store and arrange to have it shipped to their worksite. "2018 Annual Report," Page 1. Get a 20% American Eagle coupon with your new AEO Connected credit card, Spend $49 & get 20% off + free shipping - Foot Locker coupons, Macy's coupon - Sign up to get 25% off next order, Walmart promo code: $10 off all departments, eBay coupon: Save $5 on your first purchase, No-Ads $11.99/mo. Distribution management oversees the supply chain and movement of goods from suppliers to end customer. I urge long-term investors to focus on just how critical this winning culture is to the prosperity of not only this business, but to that of other high-quality companies as well. Below, I'll highlight two of the biggest contributors to that wide business moat. Copyright by Panmore Institute - All rights reserved. Both results were above analyst expectations. For GDPR compliance, we do not use personally identifiable information to serve ads in the EU and the EEA. Valentin, E. K. (2001). This is the case for Home Depot (NYSE:HD), which has a robust organizational culture that has played a key role in the stock's sevenfold rise over the past decade. Here’s Why, China Launches Its First Mission to Bring Back Moon Samples, How Coronavirus Bailouts Could Help Spur Greener Air Travel, WSJ Opinion: A Thanksgiving Heap of Coronavirus Hypocrisy, News Corp is a network of leading companies in the worlds of diversified media, news, education, and information services.

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