Home Depot Swot Analysis
Strengths Home Depot has many competitive strengths that make them a very difficult company to compete against. Home Depot’s strengths include:
• Business model
• Well known brand name
• Extensive product offerings
• Ability to grow
Home Depot’s business model, the first of its kind in the home improvement industry has revolutionized the way customers shop for home improvement products. Their business model is simple. Sell home improvement products and services to DIY, BIY, and professional customers in huge spacious warehouses that boast a wide variety of products with sales associates that are educated and knowledgeable about home improvement (case). This is all done with low prices as the primary driver. The Home Depot name has become synonymous with home improvement. This association has been forged over a long time of being number one in customer’s minds when it comes to home improvement. Home Depot’s orange aprons, low prices, knowledgeable associates, and warehouse like stores have all contributed to a very strong brand image. It is no secret that if you want anything having to do with home improvement the first place to go is Home Depot. Home Depot has distinguished itself as the home improvement warehouse that has what you are looking for when it comes to home improvement. Their extensive product lines have made Home Depot the one stop shopping in home improvement.
Since the beginning, Home Depot has demonstrated its desire to become the largest home improvement retailer in the world. Home Depot has planned on growth rates of 21%-22% growth rates in the number of stores over the next several years. By 2003 Home Depot plans on having over 1900 stores (case).
Weaknesses
Counterbalancing the strengths of Home Depot, it also has a couple of key weaknesses that need to be addressed. Growth has both a blessing and a headache for Home Depot. As the have expanded aggressively into new markets, they have seen their operating expenses rise
• Business model
• Well known brand name
• Extensive product offerings
• Ability to grow
Home Depot’s business model, the first of its kind in the home improvement industry has revolutionized the way customers shop for home improvement products. Their business model is simple. Sell home improvement products and services to DIY, BIY, and professional customers in huge spacious warehouses that boast a wide variety of products with sales associates that are educated and knowledgeable about home improvement (case). This is all done with low prices as the primary driver. The Home Depot name has become synonymous with home improvement. This association has been forged over a long time of being number one in customer’s minds when it comes to home improvement. Home Depot’s orange aprons, low prices, knowledgeable associates, and warehouse like stores have all contributed to a very strong brand image. It is no secret that if you want anything having to do with home improvement the first place to go is Home Depot. Home Depot has distinguished itself as the home improvement warehouse that has what you are looking for when it comes to home improvement. Their extensive product lines have made Home Depot the one stop shopping in home improvement.
Since the beginning, Home Depot has demonstrated its desire to become the largest home improvement retailer in the world. Home Depot has planned on growth rates of 21%-22% growth rates in the number of stores over the next several years. By 2003 Home Depot plans on having over 1900 stores (case).
Weaknesses
Counterbalancing the strengths of Home Depot, it also has a couple of key weaknesses that need to be addressed. Growth has both a blessing and a headache for Home Depot. As the have expanded aggressively into new markets, they have seen their operating expenses rise