Three Home Improvement Companies with the Competitive Advantage in the Market.
I have chosen three of the top home retail giants, who know how to target their customers’ demands: Home Depot verse Lowes and Ace hardware store, The Home Improvement battle for first place.
Before considering Home Depot, as one of the top home improvement retailer, it is important to note that Lowes is also a goliath in the retail business. On the other hand, we have a simple mom and pop hardware stores like Ace Hardware that are independently owned entrepreneur stores. These three major competitors have been matching giants of their industry for many decades, both Home Depot and Loews company sharing first and second position in the pyramid of retail hierarchy. While Ace hardware stores struggle to compete with these two giant leaders in the retail industry. I will be using a SWOT analysis that stands for: Strength, weaknesses, opportunities, threats, for each of the companies I’m writing about.
Home Depot:(SWOT). Home Depot has transformed the Industry in the way American home improvement looks and feels like. …show more content…
Some of Home Depot strengths, relies on their recognized brands, which is one of the largest home retailers in the world and the most recognized brand in the Industry today. Home Depot have grown to 2,269 stores, which 1,976 are in the United States, and 182 in Canada, plus 111 stores in Mexico. Their competitive advantage is having the highest sales of any of their competitor on the market. Their fiscal revenue exceeded over $83 billion dollars and a net profit of more than $6 billion dollars, which demonstrated a remarkable growth in stock prices in the last five years. They revolutionized the Do-It-Yourself, Do-It-For-Me, attitude. Despite this, Home Depot managed to carve its way to being one of the industry top leader. Home Depot weakness: High debt levels, in recent years. Their dependence is on the American market, in addition to, their reliance on the U.S. market which makes them vulnerable to downturns in it economy. Opportunities: Global Expansion in the United States, especially, when in recent acquirement of interline brands, they focus on strengthen same store sales instead of expanding with the international markets. Home Depot threats: Competition, even though Home Depot remains one of the largest home improvement retailers in the world. It still faces stiff competition from several of its major companies like Lowe’s and Ace Hardware. Lowe’s (SWOT) Strengths: Lowe’s stores handle a specific department center that caters to different customers wants and needs. Two example are lumber yards, and outdoors garden centers. They also have a very strong and efficient distribution system. Lowe’s operates 14 regional distribution centers for lumber, and building materials, especially, long term items. Lowe’s can efficiently distribute to 75% of its merchandise to all its stores, where there able to purchase at a larger scale for orders at a discounted price, where there able to pass on the savings to their customers worldwide. Lowe’s weakness, is the lack of control over their product manufacturing, because Lowe’s procures their merchandise from approximately 7,000.00 domestic and foreign suppliers. This makes it very difficult to control over their product quality, in addition to, having no financial stability from these countries. There opportunity: there increase in e-commerce and m-commerce sales, Lowe’s
I have chosen three of the top home retail giants, who know how to target their customers’ demands: Home Depot verse Lowes and Ace hardware store, The Home Improvement battle for first place.
Before considering Home Depot, as one of the top home improvement retailer, it is important to note that Lowes is also a goliath in the retail business. On the other hand, we have a simple mom and pop hardware stores like Ace Hardware that are independently owned entrepreneur stores. These three major competitors have been matching giants of their industry for many decades, both Home Depot and Loews company sharing first and second position in the pyramid of retail hierarchy. While Ace hardware stores struggle to compete with these two giant leaders in the retail industry. I will be using a SWOT analysis that stands for: Strength, weaknesses, opportunities, threats, for each of the companies I’m writing about.
Home Depot:(SWOT). Home Depot has transformed the Industry in the way American home improvement looks and feels like. …show more content…
Some of Home Depot strengths, relies on their recognized brands, which is one of the largest home retailers in the world and the most recognized brand in the Industry today. Home Depot have grown to 2,269 stores, which 1,976 are in the United States, and 182 in Canada, plus 111 stores in Mexico. Their competitive advantage is having the highest sales of any of their competitor on the market. Their fiscal revenue exceeded over $83 billion dollars and a net profit of more than $6 billion dollars, which demonstrated a remarkable growth in stock prices in the last five years. They revolutionized the Do-It-Yourself, Do-It-For-Me, attitude. Despite this, Home Depot managed to carve its way to being one of the industry top leader. Home Depot weakness: High debt levels, in recent years. Their dependence is on the American market, in addition to, their reliance on the U.S. market which makes them vulnerable to downturns in it economy. Opportunities: Global Expansion in the United States, especially, when in recent acquirement of interline brands, they focus on strengthen same store sales instead of expanding with the international markets. Home Depot threats: Competition, even though Home Depot remains one of the largest home improvement retailers in the world. It still faces stiff competition from several of its major companies like Lowe’s and Ace Hardware. Lowe’s (SWOT) Strengths: Lowe’s stores handle a specific department center that caters to different customers wants and needs. Two example are lumber yards, and outdoors garden centers. They also have a very strong and efficient distribution system. Lowe’s operates 14 regional distribution centers for lumber, and building materials, especially, long term items. Lowe’s can efficiently distribute to 75% of its merchandise to all its stores, where there able to purchase at a larger scale for orders at a discounted price, where there able to pass on the savings to their customers worldwide. Lowe’s weakness, is the lack of control over their product manufacturing, because Lowe’s procures their merchandise from approximately 7,000.00 domestic and foreign suppliers. This makes it very difficult to control over their product quality, in addition to, having no financial stability from these countries. There opportunity: there increase in e-commerce and m-commerce sales, Lowe’s