Home Depot Swot Analysis Paper

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The Home Depot is a leading retailer of home and business improvement, construction products and services. Although Home Depot operates in a highly competitive market, they have remained successful. For example, Home Depot, Inc. is the world's largest home improvement specialty retailer with fiscal 2014 retail sales of $83.2 billion and earnings of $6.3 billion (Home Depot Corporate). The success of Home Depot depends on several factors. According to the Annual Report (10K), the success of their business “…depends in part on [their] ability to identify and respond promptly to evolving trends in demographics; consumer preferences, expectations and needs; and unexpected weather conditions, while also managing appropriate inventory levels…show more content…
Their customer service is always excellent and the associates are knowledgeable about their store and products. They truly go the extra mile to give me knowledgeable advice about merchandise and to help me find what I’m looking for. Another factor that is critical to the success of Home Depot is privacy and security. As like many other retailers, the business of Home Depot involves the receipt, storage, and transmission of customers’ personal information and payment card information, as well as confidential information about their associates, suppliers, and their company. Many of this information is entrusted to third-party service providers and vendors. In order for Home Depot to remain successful, they must protect this information and keep it from getting into the wrong hands. With the increasing threat of cybersecurity risks, this has been an ongoing and difficult task and there isn’t any guarantee. For example, in September 2014, Home Depot confirmed a breach of its payment security systems that affected 56 million customers in its U.S. and Canadian stores (Home Depot Security Breach, 2014). Home Depot…show more content…
home improvement industry, accounting for approximately 60% of all revenues. Since the recession, Home Depot has grown continuously, with the stock price registering a 40% increase in the last 52 weeks alone (Forbes, 2015). One of their largest competitor is Lowes. Their prices and products very similar and they both offer a low-price guarantee. “From 2010-2012, Home Depot routinely netted around $6.5 billion more per year than Lowe’s. Home Depot is simply a bigger company than Lowe’s and this unchanging fact was reflected in their unchanging advantage. At the beginning of 2012, Home Depot’s stock returns were about 61.5% higher than Lowe’s. By year’s end, they were about 103.01% higher, a gap that rests at around 93% today” (Forbes, 2015). Home Depot’s 2012 renewed plan to enhance customer service made the financial gap between themselves and Lowe’s even larger. Its steady $20 billion lead in total revenue and $6 billion lead in total income, increased to approximately $25 billion and $9 billion, respectively (Forbes,

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