Swot Analysis For Home Depot

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The Home Depot is a company that specializes in retail for home improvement and construction products and services. The company is the world’s largest home improvement retailer with more than 2,200 retail stores in the United States, Canada and Mexico. The Home Depot store design is based off a warehouse building with about 105,000 ft2 . The Home Depot stores are ran by associates, assistant managers and store manager but the store is also broken down into many departments. The company offers different positions of employment like sales/customer service which is a regular associate, cashiers, department supervisors, operations, merchandising, tool rental tech, kitchen/ bath, office/store support, delivery, assets protection/ loss prevention. …show more content…
A SWOT analysis is a structure that shows the internal and external factors affecting the company’s organizational development. With SWOT analysis it can help Home Depot overcome weaknesses. The Home Depot’s strengths or internal strategic factors are related with current success of the business. Looking at what makes the company effective helps reveal the company’s strengths which are high quality service, strong brand image, close relationship with suppliers, market leadership. Having great customer service is Home Depot’s main strength because it helps differentiate itself from competitors. Home Depot’s close relationship with suppliers help reduce cost-effeteness. With every strength comes a weakness and its internal weakness are linked to the business nature, focus and supply chain. Factors that decrease business growth for Home Depot are limited supply chain, imitable business format, dependence on the U.S market. The close relationship with suppliers discourages suppliers from doing business with competing firms. This limits the supply chain because some brands are not available in the company’s stores. Another down fall of Home depot is its dependency on the U.S market, because this makes the company vulnerable to downturns on the American economy. For opportunities the Home Depot are mainly based on business expansion. The company’s main opportunities are global expansion, expansion of supply chain and diversification of business. With minimal presence in oversea markets, this brings Home Depot the opportunity to globally expand its business and supply chain. The Home Depot also has the opportunity to diversify its business by gaining a hold of new industry or market. The last factor Home Depot faces is threats, which are related to the economy and existing firms in the market. These external strategic factors have the ability to reduce business in the industry. These are the three main threats

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