President of THDC, Annette Verschuren had a new company vision for the company which was for THDC to become Canada’s top retailer. However, consumer trends have been changing in the home improvement markets. Therefore a new retailing strategy was needed to respond to these changes. Mrs. Verschuren had to decide if she should continue with the current strategy of THDC, tweak it or totally overhaul it.
|Strength |Weaknesses |
|Home Depot is the world’s largest company in the home improvement retail industry.|Customer preferences where shifting from DIY to DIFM, women buyers were more |
|It has the needed experience to adjust to market changes and to acquire prime |prominent segment, and Pro markets where increasing. This meant that THDC |
|locations for new stores. |strategy which was successful in the past, might not serve the current business|
|THDC practices an everyday low price policy, which increases sales volumes and in |objectives to become the number 1 retailer in Canada. |
|turn revenues year round. It also provides a wide assortment of merchandise to |There is saturation in big box format stores as well as an anticipated slowdown|
|cater to different needs and tastes, hence wider markets. |in growth for home improvement products. THDC had to look for other market |
|THDC invested in a major technology and operations renovation for its processes. |segments for revenue expansion. |
|It made checkouts, item returns, value added services and inventory control faster|Relying less on sales people and more on automated processes might cause |
|and more efficient....