Memo To The CEO Of The Company You’ve Been Assessing Throughout The Course Home Depot Write a 2- to 3-page memo to the CEO of the company Home Depot you’ve
Memo To The CEO Of The Company You’ve Been Assessing Throughout The Course Home Depot Write a 2- to 3-page memo to the CEO of the company Home Depot you’ve been assessing throughout the course, outlining your plan to create economic, social, and environmental value. In your memo, include the following items:
An executive summary of the memo
A summary of the organization’s strengths and weaknesses, and recommendations for converting weaknesses into strengths
A summary of your Week 3 findings on Porter’s Five Forces
A summary of your Week 4 findings on the Diamond of National Advantage
A summary of your Week 5 analysis of the firm as a learning organization
Strategic recommendations based on your previous work in this course. Include the opportunity identified in Week 2, the move into the country identified in Week 4, and any recommended moves toward being a learning organization. Provide rationale for each recommendation.
Support your Statements: Include citations
Format your citations and references according to APA guidelines.
Submit your assignment. Running head: PORTER’S FIVE FORCES
Porter’s Five Forces 4
Porter’s Five Forces
The threat of new entrants
New entrants have a moderate impact on The Home Depot. It is expensive to invest in the industry. This makes it difficult for new businesses but they can still join the market. Businesses that are strong enough to enter the market will be a moderate threat (Roy, 2011). This is because they threaten to take a part of The Home Depot’s market.
Power of buyers
Buyers have a very high influence because they have substitutes to choose from. Their opinion is significant because they can easily switch to a different company. When customers have many options, they become significant to a company. If they decide to shift, the company will be greatly affected.
Power of suppliers
There are many suppliers and this makes their bargaining power low. As much as they have an impact on the company, it is low. The Home Depot has many suppliers to choose from. This gives the company an upper hand over the suppliers. This force has a very low impact on the company that it cannot be felt. It is an insignificant impact.
Power of substitutes
Substitutes strongly affect The Home Depot. They give customers alternatives and this is a significant concern for the company. Without proper strategies, a business can lose its market to substitutes. This is because substitutes are usually cheaper, therefore, more affordable. Customers who are not keen on quality can easily shift.
Rivalry among competitors
Competition is considered a strong force because Home Depot has many competitors. There are many companies in the industry that offer home improvement services. When many firms offer similar services, the competition becomes high because customers have many options to choose from. Many companies are already in the business and there is a chance of new ones coming up. This makes the market very competitive and it requires businesses to be strategic to survive on the market (Perera, 2020).
Complementors have a moderate impact on The Home Depot. As much as they are significant and help the company to be complete, the company can still stand on its own.
Perera, R. (2020). Understanding Michael Porter: The Essential Guide to Competition and Strategy. Boston, MA: Harvard Business Review Press.
Roy, D. (2011). Strategic Foresight and Porter’s Five Forces. Munich: GRIN Verlag.