1. Bing the industry leader. it has adequate capital and resources to distribute its concern 2. Bettering the nucleus shops by diversifying services. new channels and travel upstream and to international markets. 3. Developing a sweeping builder supply concern and place service concern 4. Cuting labour costs by duplicating the figure of parttime workers Weakness:
1. The big figure of parttime workers can diminish the quality of merchandises. Workers won’t work so hard. 2. Selling sweeping distribution channels makes it loss the sweeping clients. 3. The client satisfaction decreased. because the shop is non that modern 4. The immense debt ratio from 10 % to 47 %
1. Geting the Chinese home-improvement retail merchant can assist Home Depot spread its distribution and sell the merchandises internationally 2. Borrowing money from exterior can assist develop concern faster. Menaces:
1. The effort of come ining home-services concern is so aggressive. immense hazard may affect. 2. The high stock monetary value does non intend a good concern scheme ; it is because investors predict the company may increase. 3. Lowe’s. which is the biggest rival of Home Depot continues to make good Recommendations based Strength and Opportunity:
Raising money and edifice new distribution channels and shops are effectual methods to distribute concern. However. before develop new markets. researches should be analyzed carefully. If the new markets such as Mexico and China do non consumer the same type of goods as U. S does. alterations should be made when developing new channels. In add-on. cutting labour costs by increasing the parttime workers is non a long-run scheme. Part-time workers may non work every bit difficult as full-time workers. This may increase the cost of purchasing back unqualified stock lists. Suggestions based on Weakness and Menaces:
As Home Depot’s major rival. Lowe’s run good and has a higher client satisfaction. Home Depot should pay more attending on customer’s demands and increase the satisfaction rate. Building modern shops and puting the valuable distribution channels ; it can increase gross revenues and cutting failed investing costs. Do non distribute the concern sharply ; it may take to immense loss. Home Depot can distinguish itself by supplying ace client service and construct staff’s trueness by giving rank benefits and staff’s gift stocks.