Introduction
This paper is aimed at examining the work of such companies as Canadian Tire and the Home Report. At first, one should pay close attention to their historical growth and operations. Apart from that, one should explain how these organizations achieved considerable success. On the whole, this information will be necessary for the analysis of these enterprises and identifying their major competitive strengths.
Background of two companies
Canadian Tire
It should be noted that Canadian Tire is a retailer that sells various products such as car accessories, kitchen appliances, athletic apparel, plumbing tools, drills, and so forth. However, at the beginning, this company sold only tires. This organization was founded in 1922; its first store was based in Toronto. During the following decades, the company opened associate stores and filling stations in different parts of Canada (Canadian Tire). So, car owners were their major customers. Furthermore, in 1968, the company began to provide financial services. In particular, they began to offer credit to the potential buyers of their goods.
In the early seventies, the company began to open computer-controlled distribution centers which were important for improving the supply chain of this organization (Canadian Tire). Moreover, the management chose to enter other areas of retailing. In particular, they began to sell clothing and sports goods. They achieved this expansion by purchasing such companies as Mark’s and Forzani Group since these businesses became important players in the field of retailing. Overall, these acquisitions contributed to the growth of this organization. Currently, the stocks of this company are traded on the Toronto Stock Exchange.
The growth of this company is often attributed to the activities of Alfred Billes who was the CEO of this company for a long time (Canadian Tire). To a great extent, he laid the foundation which was vital for the sustainable development of this company during the last two decades. This is some of the main details that should be taken into consideration in order to analyze its performance.
One should keep in mind that Canadian Tire has been working as the national company. In other words, this organization has not tried to enter the market of the United States or any other country. Nevertheless, the company operates online, and customers can purchase their goods from their website. Overall, this company can be viewed as one of the major retailers in Canada. Moreover, the managers have been able to diversify the range of products that it offers to the clients. Still, this organization has not tried to compete at the international level. These are the key aspects that should be distinguished.
The Home Depot
In turn, the Home Depot specializes in the retailing of products that are needed for construction and home improvement. For instance, this organization can offer paints, plastic sheets, roofing materials, insulations, and other products that can be required for construction or decoration. Thus, they can serve diverse needs of customers. This corporation was founded in 1978 (The Home Depot). Initially, this company was operating only in Atlanta and other cities located in Georgia. Nevertheless, the organization was able to achieve significant growth after becoming a publicly-traded company.
This company was able to attract investment, and it opened its stores throughout the United States. The period between 1981 and 2000 was marked by its rapid development, and one can say that the Home Depot became a global company (The Home Depot). Furthermore, the success of this enterprise can be explained by such factors as the continuous development of the supply chain and training of the employees.
In particular, these individuals were required to have in-depth knowledge of various products. They could identify the goods that best suited the needs of buyers; as a result, their expertise could be vital for gaining the loyalty of clients (The Home Depot). Among the main executives of this corporation, one can distinguish Bernard Marcus. He was one of the founders; moreover, he was a long-standing CEO. To some degree, his managerial decisions were critical for the sustainable expansion of this enterprise and its improved financial performance. These are some of the key points that can be made.
It should be mentioned that the Home Depot is an international company that operates in the United States, China, Argentina, Canada, the United Kingdom, and Mexico. To some degree, this example indicates that this organization can successfully adjust to the legal requirements adopted in different countries.
Moreover, it can successfully operate in the competitive markets. Furthermore, one should note that the goods of this company are available online because many customers prefer to purchase goods on the Internet. On the whole, the Home Depot is verily likely to retain its competitive positions in the specific segment of the market due to the diversity of its products and the expertise of workers. These strengths are important for their sustainability. These are the main issues that should not be overlooked during the analysis of this enterprise.
Works Cited
Canadian Tire. “Milestones in Canadian Tire’s History.” Canadian Tire. 2011. Web.
The Home Depot. “Our History.” Home Depot. Web.