Question

The SWOT analysis .

• This is an analysis of the current internal and external situation with options for a new strategy for a home improvement retailer - Home Depot
• You will analyze the company in terms of an expanded SWOT analysis using the 9 box format .
• Your task is to
  • create the 9 box swot analysis for the company and
  • summarize your findings and recommendations in a paragraph.

Answer 1

SWOT ANALYSIS:

S- STRENGTH

W- WEAKNESS

O- OPPORTUNITIES

T- THREATS

Swot is the simple and useful framework for analysing the organization, helps us find out on what we do well and to address where we are lacking, to minimize risk and to take the greatest possible advantage of chances for success.

Below is the swot analysis for a Home Depot.

HOME DEPOT	STRENGTHS -S 1.High quality service 2.Strong brand image 3.Close relationships with suppliers 4.Market leadership	WEAKNESS -W 1.Limited supply chain 2.Imitable business format 3.New Store productivity remains weak 4.Store Layout and appearance
OPPORTUNITIES – O 1.International expansion 2. Diversification of business 3.competition	SO STRATEGIES 1.Open stores in Europe or Asia -Pacific Markets. 2.Experiment with different checkout methods	WO STRATEGIES 1.Expand product line to other areas 2.Sell wider variety of product online 3.Open stores in Europe or Asia.
THREATS -T 1.Substitutes 2.New technology 3. Competition 4.Econmoic slow down	ST STRATEGIES 1.Increase the market share by buying out True Value or Acc. 2. Open stores in Europe or Asia -Pacific Markets.	WT STRATEGIES 1.supply contractors working in Middle East reconstruction efforts. 2. Open stores in Europe or Asia -Pacific Markets.

STRENGTHS:

Home Depot’s strengths directly relate with the current success of the business. This aspect of the SWOT analysis framework deals with the organizational characteristics that make the business effective. In the case of Home Depot, the following are the main Strengths:

· High quality service

· Strong brand image

· Close relationships with suppliers

· Market leadership

High quality service is one of Home Depot’s main strengths. The company uses excellent service to differentiate itself from competitors. Home Depot’s close relationships with suppliers ensure cost-effectiveness and economies of scale.

WEAKNESS:

Home Depot’s weaknesses are linked to its business nature, focus, and supply chain. This aspect of the SWOT analysis framework points to internal strategic factors that hinder or reduce business growth. In the case of Home Depot, the following are the main weaknesses:

· Limited supply chain

· Imitable business format

· Dependence on the U.S. market

Home Depot and competitors like Lowe’s have close relationships with suppliers. This condition discourages suppliers from doing business with competing firms. This limitation in the supply chain is a weakness because some brands are not available in the company’s stores.

OPPORTUNITIES:

Home Depot’s opportunities are mainly based on business expansion. This aspect of the SWOT analysis framework deals with industry or market characteristics that support business development. In the case of Home Depot, the following are the main opportunities:

· Global expansion

· Expansion of supply chain

· Diversification of business

Home Depot can globally expand its business and supply chain. This is a major concern, especially because the company currently has minimal presence in overseas markets. Thus, this SWOT analysis shows that Home Depot’s opportunities emphasize global growth and expansion.

THREATS :

The threats to Home Depot’s business are related to the economy and other firms in the market. This aspect of the SWOT analysis framework points to external strategic factors in the industry or market that could reduce business capabilities. In the case of Home Depot, the following are the main threats:

· Competition

· Substitutes

· Economic slowdown

Competitors like Lowe’s are the main threat to Home Depot’s market dominance. In relation, the company faces the threat of substitutes, which include home improvement products available from general merchandise retailers like Walmart. Also, many online retailers now offer similar home improvement products. In addition, any slowdown of the U.S. economy is a major threat because most Home Depot’s revenues are generated in the American market. In this regard, the threats identified in this SWOT analysis show that Home Depot must emphasize stronger competitive advantage and global expansion.