Home depot is a company that operates in US, Canada, Mexico, and China as well as online businesses. Lowes approach is they focus on improving technology as well as their company. Foreign market participation is where companies operate in other geographic areas besides their home headquarters. This graph displays the world and where companies are operating. The company I’m researching on is Home depot who has a foreign market share of 1%. That is not much as we see but we are slowly moving into the Foreign market. Within the global industry Home Depot makes up for majority of the share. At the same time Kingfisher our competitor has 5% of the foreign market. That can be from countries opening new facilities as well as improving the home market . Last is Lowes who has been through a big down size over the last few years. Overall in the foreign market Lowes does not compete they are a focused more on the domestic market. As we see the markets improve Home Depot entering into the foreign market overtime will increase their profits. Doing that their percentage of foreign market share will increase with time and make them a bigger player globally. Home Depot currently is restructuring their strategy. They have opened up to more hispanic so they can attract the hispanic market as well as changing their slogan from “You can do it we can help” to “more savings more doing”. As I stated before this will attract more customers in foreign markets as well increase the company to a higher level.
Boston consulting matrix
This weeks blog deals with the boston consulting matrix. The Boston square matrix is a tool for marketing managers. The concept is an approach to product portfolio planning. There are two main aspects Market Growth and Market share as you can see in the diagram.
The way we use the graph is you analyze each individual company or product. After you complete that you would place them in the correct area. There is the dog which would be a company or product who has a low share of low growing market. Next is the Cash Cow which includes a high share of a slow-growing market. They generall tend to invest more than what is invested within them. Then there is the problem child they consist of low shares of a high growing market. Last are the Stars which are in a high growth market and has a high share of the that particular market.
The company that I choose to research is Home Depot and the company is considered between cash cow and dog due to their because the company has a high growth of revenue and market share. Home Depot is the top competitor within the market due to home improvement stores closing.
Ryanair
Ryanair is one of the oldest low-cost Airlines in Europe. They are a very structured company and that has made them very succesful over the time. Ryanair has had a competitive edge over the years by having competitive prices and a competitive strategy. The CEO Eugene O’Leary has a very different approach which has made the company a major profit and a big reputation.
Their low prices offers more customers which gives them the upper hand in buying more aircrafts. Consisting of Boeing 737s which are very big in size and fits more customers than the average aircraft. Adding to their low-cost they use secondary airports which lower their cost. At the same time there are no delays and the turnovers are quicker than most.
Also customers who travel deserve a quick turnover so they are on time to their destination. There average turnaround is 25 minutes. That is very fast and accurate for all customers. Having that competitive edge has made Ryanair a better company than most.
There online sales has also increased their sales almost 95% of their sales were driven in from the internet.The internet for all companies international or domestic airlines helps company profits.unlike most airline Ryanair does not give out freebies like drinks and peanuts. This is a very competitive airline and if they keep up what they are doing the will be successful for many years to come.
Ryanair (Photo credit: Sean MacEntee)
Porters 5 forces
English: The Home Depot in Knightdale, North Carolina. (Photo credit: Wikipedia)
The graph this week displays the 5 forces of porters law. the first force is the threat of new entrants basically means that there are different solutions to entering a new specific market. Example would be that if Home Depot raised prices and another competitor entered in the market then that is a threat of new entrants. Next is Buyer power that is having the ability to have the power to force prices down in tha market to gain more consumers. The threat of substitutes shows that at anytime another product can take over a market. For example Pepsi sells well so does Coke but many choose water over both that is a major substitute. Supplier power consists of having the power to supply a product but at the same time having the ability to negotiate pricing. Last is rivalry which many of us know about and that is basically having competition between the sellers of that industry. Example of this is Lowes and Home depot who has a big rivalry because they are the major players in the industry.
home improvement chart
Home Depot is the world’s largest home improvement chain and fourth-largest US retailer, the company functions about 2,250 stores across North America, Puerto Rico, and China, as well as an e-commerce site. It targets the do-it-yourself and professional markets with its choice of some 40,000 items, including lumber, flooring, plumbing supplies, garden products, tools, paint, and appliances. Home Depot also offers installation services for carpeting, cabinetry, and other products. Hurt by the deep recession and housing crisis in the US, the chain is beginning to regain its footing by focusing on its core Home Depot stores.
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SWOT
SWOT analysis is an effective strategic planning tool that helps identify and analyze your company’s strengths, weaknesses, opportunities, and threats.
Strengths Home depot is the largest home retailer in its industry. The company has net sales of $68 billion and operates 2248 stores across the world.
Home depot has a very strong brand name being seen on all advertisements which attracts many consumers.
Their products and services stand out better than other companies. Home depot offers services for installations at reasonable prices than other home retailers.
Location is a major reason in having a successful business and Home depot has many locations in areas where home improvement is most needed.
Weaknesses Home depot is in a mature domestic market where in 2011 where they opened a store but later was relocated and their competitor Lowes operates as well.
Home depot is involved in three class action suits which can hurt the company’s reputation.
Opportunities Home improvement is increasing and that gives Home depot to maximize their profits. A rise in immigrants gives the community a raise in home improvement people want to have that freedom to come and build their own homes they look to Home Depot.
Our environment is becoming more ecofriendly therefore Home Depot offers products that fit the consumer’s needs.
Threats if the housing market does not increase Home depot can lose business. As well as new competitors coming into the market and regulations.
English: Logo for The Home Depot. Category:Brands of the World (Photo credit: Wikipedia)
Corporate Governance
This weeks blog deals with the governance of Disney. Frank wells was a well people person and many people liked that characteristic about him. On the other hand Micheal Eisner the CEO liked that about him because it brought more people in the company. Wells and Eisner both formed a great team and that increased their revenues over the years. Then in 1994 Frank passed in a tragic helicopter crash this had a major impact and from then Eisner gained too much power. He was very aggressive and that allowed for many people to leave due to his unethical ways. After 9/11 tourism at Disney went under and things started to fail now Eisner developed a plan to turn around the company.
The company’s board had a problem trying to figure who he would allow as his replacement once he left. The problem is that he never planned to leave Disney. This is a major problem if an emergency was to happen to him the board would have to vote in a new president. That’s why companies have certain guidelines on what will happen within a company. It was an eye wash due to that he elected his friends to sit on the board and most of us know when we put our friends in to high positions problems can occur causing problems within the company as well.
On the behalf of Roy and Gold leaving the company it was a good decision because they knew that if they could not get the board to kick him out how would they be able to convince outside shareholders to throw him out. In my view a good decisions and a bad leader on Eisner behalf.
in order for a company to succeed there has to be a structure. There has to be a willingness from the CEO to improve the company day-to-day. Eisner in my opinion did not fit that place I believe he thought of himself and no one else.
Image via CrunchBase
Swot Analysis of Home Depot Inc.
English: Overview of Home Depot store “Centro” located in Mexico City (Photo credit: Wikipedia)
Swot analysis is a strategic planning method used to evaluate the strengths, weaknesses/limitations, opportunities, and threats involved in a project or in a business venture. It involves identifying the objective of the business project and identifying the internal and external factors that are favorable and unfavorable to achieve that objective.
Home depot has its own swot analysis that gives a better look at the company with in the industry they work with. First is the Strengths every company has their own strengths that makes them better than most. Having the opportunity to be the largest home improvement dealer in the world Home Depot has much power with in the Home industry. Selling building materials, lawn and garden and home improvement materials Home Depot is a major player. Home depot also has that upper hand in bargaining power. Home Depot size creates a low-cost position that offers dominant competitive position with in the market.
Weaknesses which is a major hit to Home Depot being that the US is the largest market for the company. Next are opportunities where home improvement benefits from sales. Renovation projects have risen and are expected to rise as well as building materials for business as well. Rising immigrant population has increased sales of Home Depot. Many immigrants that come to the US buy homes that need work. That is where Home Depot comes into play and makes a nice profit for work needed. Last is that we are pushing for Eco boosting techniques such as energy-efficient products. Home Depot offers products in which home owners can save a few bucks a month. One last characteristic in the swot analysis is threats. As many of us know that our housing market has taken a big hit. A fragile housing market and slow economy in the eyes of Home Depot shows that sales will be low. If there is no one buying materials to fix up their homes then Home Depot makes no money. Lowes suffered a loss losing many stores due to the housing market being short. Overall a swot analysis gives you a better understanding what Home Depot Inc. is all about.
A start to a great year
Hello My name is Arick Coggins currently a senior attending Lewis university studying Business Administration located in Romeoville,il. This year I will be offering plenty of information on Home Depot. This will be interesting information on their standing with in the market, new projects and more. This is a project for my Strategic Management course So lets have fun and I hope you enjoy.
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A better look at Home Depot Inc. 
