Individual SWOT and Strategic Recommendation for Home Depot Analysis

Verified

Added on  2022/12/16

|8
|1716
|218
Report
AI Summary
This report presents a comprehensive analysis of The Home Depot, encompassing its business and corporate-level strategies. It begins with an introduction to strategy and its importance, followed by an examination of Home Depot's strategic frameworks, including its three-legged tool and customer-centric business model. The report then delves into a detailed SWOT analysis, outlining the company's strengths (e.g., market leadership, strong brand recognition), weaknesses (e.g., leadership changes, lack of product differentiation), opportunities (e.g., differentiation, online marketing), and threats (e.g., economic fluctuations, competition). Based on this analysis, the report offers specific recommendations for improvement, such as adopting effective strategies, leveraging technological advancements, product diversification, and focusing on online expansion. The conclusion summarizes the key findings, emphasizing the value of the SWOT analysis in informing strategic decision-making and enhancing the company's overall efficiency and effectiveness. The report uses various academic resources such as books and journals to support the analysis.
Document Page
Individual SWOT and
Strategic Recommendation
for The Home Depot
tabler-icon-diamond-filled.svg

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Document Page
Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Strategies of the Firm...................................................................................................................3
SWOT Analysis...........................................................................................................................4
Recommendations........................................................................................................................6
CONCLUSION................................................................................................................................7
RERFERENCES..............................................................................................................................8
Books and Journals......................................................................................................................8
Document Page
INTRODUCTION
Strategy is the term which is defined as the process or the steps which are taken to
improve the systems of the work (Li and et.al., 2020). Strategies help in making the necessary
changes which are to be placed at higher importance for the company. The Home Depot is the
largest home improvement retailer in the United States which supplies, tools, services and
products.
The main purpose of analyzing this study is to identify the strategies which are followed
by The Home Depot and along with this evaluating the SWOT analysis for the company.
The report will analyze business – level strategies and corporate level strategies which
will analyze The Home Depot’s internal and external functions in making sure that the company
is working effectively and efficiently. Along with this, SWOT (Strength Weakness Opportunity
and Threat) aspect was analyzed which helped the company informed about the current and
present status along with the opportunities and threats which the company faces.
MAIN BODY
Strategies of the Firm
The business – level strategies for Home Depot is explained on the basis that the
company follows this strategy for incorporating and harmonizing the procedures and processes
which the company implements on its working (Ismail and et.al., 2017). For achieving
competitive advantage in the market, the company develops its products by forming effective
business strategy so as to with stand with the current and future market trends. For Home
Depot’s strategic framework the company uses three – legged tool. The sales and revenue of the
company have been impacted by following these strategic frameworks.
The everlasting strategic plan for the company is this three – legged tool which helps in
acknowledging the customers’ expectations and identifies what are the key sources through
which the company changes its business model and modifies it on large scale (Mazzei and et.al.,
2017). For improving the strategies of the company the company looks at the core values and
strengths which deliver the best products and services to the customers.
Document Page
Home Depot is world’s largest home improvement retailer which follows the business
strategy in which it provides wide collection of first – class products at low prices (Järventie-
Thesleff and et.al., 2020). An excellent customer service is offered to the customers through high
– skilled employees. The main focus of the company is it emphasis on industrial innovation
process which helps in regulating and increasing the processes of the producing the products and
services effectively and efficiently. The employees of Home Depot follow the business strategy
to cover the functionalities of the company so as to contribute to the overall efficiency and
effectiveness.
The corporate – level strategies for Home Depot focuses on apprehensive strategic decisions
the company makes (Abratt and et.al., 2017). This constitutes of the company’s human resource
management, mergers and acquisitions, financial performance and allocation of resources. Home
Depot makes profits by being competitive in the market. And along with this, huge profitable
locations are looked at which employees’ knowledgeable staff that serves the customers
effectively and efficiently.
There is a high reordering system which is being implied by the company which holds
high rate of inventory turns (Seifzadeh and et.al., 2019). High quality products are being served
to the customers who help to analyze the needs and demands of the customers. The company
continues to expand in the circle of making the big the company. The corporate strategy of the
firm is to expand the company on big scale. And for this, the company chooses to grow
horizontally.
Therefore, these are the corporate level and business level strategies of The Home Depot.
SWOT Analysis
SWOT Table
tabler-icon-diamond-filled.svg

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Document Page
Discussion of the SWOT
Strength – Home Depot is the largest home retailer in US. The company provides services,
products and offerings to customers according to their needs and wants. The main strength of the
company is that it follows customer centric business model which focuses on customer needs and
demands (Gürel and et.al., 2017). The Home Depot has strong brand recognition in the market.
The company also earns above average. This has made success and expansion of business over
large areas and in different regions serving best customers. Therefore, these are the strengths
which contribute to The Home Depot’s success factor and make company run on scales of
expansion.
Weakness – Due to changes in the leadership strategy, the company has incurred major loss.
There has been difference in the opinions of the employees which has affected the company’s
decisions (Vlados, 2019). Along with this, as the company deals in products, there is lack of
differentiation in it. They are not able to integrate and provide differentiated products to the
Document Page
customers. The home Depot is also involved in recent credit card breach which makes the
systems of the company poor. These are major weaknesses which the company holds. Therefore,
company should take care of its process sand procedures to be effective enough for customers.
Opportunities – The Home Depot can differentiate its services according to the requirements of
the customers (Teoli and et.al., 2019). By focusing on female population, Home Depot can
expand its business as female are more concerned about the home décor products. The company
can enhance its processes and systems through digital and online marketing. This will enable to
reach the customers on large scale. Along with this, the company should focus on internationally
expanding the business. This will regulate effective systems in the company and will help in
increasing the profits through expansion. Therefore, these are the opportunity factors which
should be focused upon.
Threats – Due to the fickle nature of the economy, Home Depot gets affected. Also, the weather
plays major role in the company business environment. This becomes major threat both for the
company and its success (Gürel and et.al., 2017). There is high dependency on housing market
which becomes threat for the company and the company face losses. Furthermore, due to high
level of competition in the market in the similar segment industries compete with each other.
There is high level of competition in the business environment. Therefore, Home Depot is the
company which also faces threats as other companies.
Recommendations
There are various recommendations which are to be given to The Home Depot for improving its
methods and processes –
The company should follow effective strategies such as adopting models which increases
the company’s strengths and ponders upon growth and development of the company.
Advancement in technology should be taken for the changes and for following the new
trends which avail new production of new services and systems.
Diversification in products should be done in such manner that it promotes the
company’s brand name and provides the customers products according to their needs and
demands.
Document Page
By focusing on female population of the country, Home Depot will be able to analyze
what are the actual needs and wants of the customers.
The company should expand its business through online and social media platforms as
they are of great help in gaining large customers base.
The financial resources of the company should be managed in such manner that the
company incurs more profits and does not incur losses. For this, every year’s budget
should be set straight.
Therefore, these are the recommendations which will help The Home Depot achieve success in
its growth and developmental factors.
CONCLUSION
Thus, it is concluded from the above report that business – level strategies and corporate
level strategies helped The Home Depot in analyzing its various internal and external functions
which contributed to the success factors and this also helped in making sure that the company is
working effectively and efficiently. Along with this, SWOT (Strength Weakness Opportunity
and Threat) aspect was analyzed which helped the company informed about the current and
present status along with the opportunities and threats which the company faces.
tabler-icon-diamond-filled.svg

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Document Page
RERFERENCES
Books and Journals
Li, F. and et.al., 2020. Social media marketing strategy: definition, conceptualization, taxonomy,
validation, and future agenda. Journal of the Academy of Marketing Science.pp.1-20.
Ismail, M.H. and et.al., 2017. Digital business transformation and strategy: What do we know so
far. Cambridge Service Alliance.10.
Mazzei, M.J. and et.al., 2017. Big data dreams: A framework for corporate strategy. Business
Horizons.60(3).pp.405-414.
Järventie-Thesleff, R. and et.al., 2020. 12. Teaching strategy work to business. Teaching
Strategic Management: A Hands-on Guide to Teaching Success.p.239.
Abratt, R. and et.al., 2017. Corporate identity, strategy and change. Journal of Brand
Management.24(2).pp.129-139.
Seifzadeh, P. and et.al., 2019. The role of corporate controls and business-level strategy in
business unit performance. Journal of Strategy and Management.
Gürel, E. and et.al., 2017. SWOT analysis: a theoretical review. Journal of International Social
Research.10(51).
Vlados, C., 2019. On a correlative and evolutionary SWOT analysis. Journal of Strategy and
Management.
Teoli, D. and et.al., 2019. SWOT analysis.
chevron_up_icon
1 out of 8
circle_padding
hide_on_mobile
zoom_out_icon
[object Object]