Goodwill Industries: Paving the

way for growth in the second-

hand business

Team RayVANSS
September 28, 2022
OGL355
Dr. Brent Scholar
Our Agenda

● Introduction
● Organizational Structure
● Leadership
● Environmental Analysis
● SWOT
● Competitive Advantage
● Recommendations
● Conclusion / Summary
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Introduction - What is Goodwill?

● Founded in 1902 by Edgar J Helms of Morgan Methodist

Chapel in Boston, MA.

● Started out collecting used household goods and clothing

and would train or hire the unemployed or impoverished to
repair them.

● Now one of the largest and most respected non-profit

organizations in North America.
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Introduction - Vision & Mission

The Vision:
Goodwill Industries believes that every person has the opportunity to
achieve his or her fullest potential and participate in and contribute to
all aspects of life (2020 Annual Report, n.d., p.36).

The Mission:
Goodwill works to enhance the dignity and quality of life of
individuals and families by strengthening communities, eliminating
barriers to opportunity and helping people in need reach their full
potential through learning and the power of work (2020 Annual Report,
n.d., p.36).
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 Organizational Structure

● Goodwill Industries International operates out of their Rockville, MD

headquarters

● 156 Goodwill organizations operate as 501(c)(3) corporations

independent from the Rockville headquarters.
○ They are still bound to adopt and implement strategies
originating from GII as part of their operating agreement.

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Organizational Structure

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Executive Leadership Team

● Board of Directors - Goodwill Industries International

● President and CEO: Steven C. Preston
● Chief Financial Officer: Kim Tran
● Chief Marketing Officer: Onney Crawley
● Chief Legal Officer and General Counsel: Regina Nelson
● Chief Operating Officer: David Eagles
● Vice President of Human Resources: Laine Dreher
● Vice President of Information and Technology: Joe Shaw

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Porter’s Five Forces Analysis

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Environmental Analysis

Competition in the industry (Degree of Rivalry)

● Threat Level of Industry Rivalry
○ High
● The threat level of industry rivalry is high since there are several
similar competitors who are in the resale industry (Porter, 2008, p.
85).
○ The Salvation Army
○ 25,000 resale and consignment shops throughout the United
States
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Environmental Analysis

Threats of new entrants into the industry

● Threat Level of New Entrants

○ High
● A new entrant can easily emerge with similar inventory and be effective in
reaching the same target audience.

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Environmental Analysis

Bargaining power of buyers

● Bargaining Power Level of Buyers

○ High
● The bargaining power of Goodwill’s buyer is high as there are plenty of
substitutes available (Porter, 2008, p. 83). With over 25,000 resale
locations open nationwide, the buyer has several options for purchasing
resale goods (The Association of Resale Professionals, 2022).

● Competitive prices and affordability

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Environmental Analysis

Bargaining power of suppliers

● Bargaining Power Level of Suppliers

○ High
● Suppliers who are, in this case, the donor, can either donate to Goodwill,
other similar organizations, or not at all.

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Environmental Analysis

Threat of substitute products or services

● Threat Level of Substitute Products

○ High
● Electing to choose another source to obtain resale clothing or consumer
goods
○ Emergence of numerous e-commerce-based websites that
specialize in the reselling of clothing and consumer goods.
○ Higher quality standards at “for profit” resale and consignment
shops impacting consumer motivations for where to shop. 13
Our Target Market

● Low-income families and individuals

● Millennials (age 25-40) and Gen-Z (age 10-25)

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Environmental Analysis - Strategies to maintain
our target market

● Market Development Strategy

○ Focus on customer experience (online and in stores)
■ Exceptional customer service
■ Store cleanliness and appearance
■ User friendly (online)
■ Organization and quality of inventory

● Concentration Strategy
○ Resale business expansion
■ Expansion of donation/retail locations
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 SWOT ANALYSIS
STRENGTHS
● Financial stability within the stores
● Products sold at a discounted rate
● Brand Equity - Access to strategic partners to
expand depth and breadth of inventory
● Infrastructure to support growth
OPPORTUNITIES
● Customer acceptance / formal adoption of thrift
and resale products
● Economic landscape is growing customer target market
● Social values (i.e. environmental/sustainability
initiatives) are influencing buying decisions and resale
demand
● Innovation occurring within the resale industry.
WEAKNESSES
● Completely dependent upon donations for
their products
● Marketing of their online presence
● Ability to keep good people
● The lack of control of low quality products
THREATS
● Increased competition within new and existing
resale/thrift stores
● Inflation rates impacting donations and sales
● Technology advancements facilitating more
consumer to consumer sale of resale goods
● Customer perception of brand image
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● Public perception of low quality products
 COMPETITIVE
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COMPETITIVE ADVANTAGE

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 Competitive Advantage - Their
Resources

● Financial Assets
○ Access to capital

● Tangible Assets
○ Retail & Donation locations
○ Supporting infrastructure (transportation, logistics and
operations)

● Intangible assets
○ Brand equity 18
 Resource Based View (RBV)

Four common characteristics of RBV

● Value
● Rarity
● Difficult to Imitate
○ Nationwide footprint of locations and supporting
infrastructure
○ Brand equity
● Ability to Exploit

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Our Recommendations

● Formation of strategic partnerships with key apparel

companies

● Allocation of capital to fund growth in a $35B

industry expected to grow to $82B by 2026!
a. Retail store expansion
b. Remodel / Rebrand remaining retail locations
c. Complete overhaul of shopgoodwill.com
d. Marketing campaign : The “New” Goodwill

● Boutique concept stores

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 CONCLUSION & SUMMARY

● Goodwill has a proven track record of success

● Talented leadership team and effective organizational structure
● Core revenue stream, the second-hand industry, is primed for growth
● Environmental analysis / Target market strategies
● Strengths, weaknesses, opportunities, and threats
● Several competitive advantages
● Recommendations for growth

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THANK YOU!

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 REFERENCES
2020 Annual Report. (n.d.). Goodwill Industries. [PDF]. Retrieved from https://www.goodwill.org/annual-report/

Coulter, M. K. (2013). Strategic management in action (6th ed.). New York, NY: Pearson.

Luenendonk. M. (2019, September 18). Threat of substitutes: Porter’s five forces model. Cleverism. Retrieved from
https://www.cleverism.com/threat-of-substitutes-porters-five-forces-model/

Porter, M. (2008, January 1). The five competitive forces that shape strategy. Harvard Business Review. 86(1). 78-93. Retrieved from
https://canvas.asu.edu/courses/128659/pages/module-2-videos-and-web-resources?module_item_id=8845692

Resale Report (2022). ThredUP. [PDF]. Retrieved September 5, 2022, from https://www.thredup.com/resale/

Silberstein, N. (2021, June 17). How resale, sustainability and its 3,300 stores support Goodwill’s key mission - Jobs. Retail Touch
Points. Retrieved from
https://www.retailtouchpoints.com/features/retail-success-stories/how-resale-sustainability-and-its-3300-stores-support-good
wills-key-mission-jobs

The Association of Resale Professionals. (2022). Industry Statistics and Trends. Retrieved from 23
https://www.narts.org/i4a/pages/index.cfm?pageid=3285