1.

The Home Depot

Founded on 29th June 1978, The Home Depot, Inc. is the world’s largest home
improvement retailer headquartered in Atlanta, GA. It sells building materials and home
improvement products such as tools, hardware items, lawn and garden equipment, etc.
The company also offers instrumentation services and rents tools and equipment.

SWOT analysis of The Home Depot

Strengths Weaknesses

 Largest in the industry

 Highly profitable  Mostly based in the US
 BOPIS strategy  Aging infrastructure
 Value for money  Late adoption to eCommerce
 Wide variety of products

Opportunities Threats

 Expanding the market more to countries  Growing competition

 Increasing online sales  Recession
 Focus on the home decor section  Price deflation

Strengths

The Home Depot (or Home Depot, as commonly known) is the leader in the home
improvement industry and occupies a dominant portion of the market. It is well-
established and has a powerful brand image.

It sells products at a profitable margin without compromising quality, providing value for
money for the customers. The company saw its net income and revenue double in 2020.
Its  'Buy Online Pickup In-Store' (BOPIS) strategy is a huge hit. It offers a wide range of
products from home decor to hardware.

Weaknesses

Home Depot has over 2000 stores, most of which are in North America; this limits the
company from exploiting opportunities in other parts of the world. As it was established in
1978, most of the infrastructure is old and the owners are trying to renovate it.

Most companies started selling online long before the Covid-19 pandemic, but Home
Depot adopted this tactic only after the pandemic hit. Hence, losing growth opportunities.

Opportunities

The company can exploit new opportunities by expanding to other countries, increasing
online sales, and focusing more on the home decor section—which has significant
growth potential.

Threats
Home Depot is facing fast-growing competition, especially in eCommerce. To tackle this,
the company needs to up its tactics. Due to the Covid-19 pandemic and fewer online
sales, there is a possibility of Home Depot losing its profits.

Due to the price drop in raw materials like lumber (Timber), the company’s revenue
dropped. This shows that the company is highly vulnerable to changes in its external
environment such as price cuts of raw materials.