Strategic Analysis Essay Example | Topics and Well Written Essays - 1500 words

Strategic Analysis - Essay Example It was founded in 1978 and has grown to become the fastest growing retail store in America. This analysis evaluates this plan using the SWOT analysis tool, to identify the company’s strengths (S), weaknesses (W), its opportunities (O), and what threatens its sustainable growth (T). Home Depot was founded on the intention of being the largest home improvement facility in America. The company’s mission statement comprises of its core values which are: taking care of people, giving back to the community, doing the right thing, excellent customer service, building strong relationships, creating value to the shareholders, respect for all, and encouraging the entrepreneurial spirit (Floor, 2006). This reveals the high value the company has placed in people and clearly shows the purpose of the business. It is very elaborate and is a plus for the company. Home Depot is now the largest chain of retail store in the county, and is a brand name. This is an achievement of its vision . The company has been actively involved in various corporate social responsibility initiatives, spending over $200 million in a number of causes. The key strength is their customer service and affordable costs. The three top priorities in Home Depot’s strategic plan are to offer goods and services that are targeted at the low cost market, to open more outlets, and to increase their range of products. Besides this, Home Depot also aims at being the exclusive supplier of building materials to licensed contractors. These three capture the core objectives of the company, established on the company’s values and in line with its vision. For example, the company seeks to focus its operations on improving customer satisfaction, by offering a variety of products and providing innovative products at competitive prices. This goal supports the company’s mission to deliver excellent customer service and to take care of people. According to Floor (2006), Home Depot has a uni que strength in the market, as it has built a reputation by offering high quality goods. By expanding its range of products, the company will be tackling one of its weaknesses. The company has for a long time been criticized for providing products of the same type and design. This company faces this challenge because it purchases its supplies from other manufacturers, a factor that limits its control on the features in a product. Product monotony has given the other competitors in the market an edge over Home Depot. The company’s image has also suffered considerably due to various products being recalled by the management after complaints from consumers. To its shareholders, the company strives to give them value for their investment. In order to remain profitable and be able to pay dividends, the company seeks to continually open new outlets and reach new markets. Home Depot now has thousands of outlets in the US and has opened 180 stores in Canada, about a hundred in Mexico , and a few in China and Britain. The company is also aggressively promoting its products to customers by establishing extra supply channels. To increase its earnings, Home Depot is reducing its cost of doing business significantly and investing heavily in its R & D. Home Depot has partnered with contractors in the growing home improvement industry and housing market. These collaborations although few, are among the many core competencies of this company, which