abhishreshthaa
Abhijeet S
SWOT ANALYSIS ON Ace Hardware Corporation : Ace Hardware Corporation is a hardware cooperative based in Oak Brook, Illinois, United States. Ace Hardware was founded in 1924 by Richard Hesse, E. Gunnard Lindquist, Frank Burke and Oscar Fisher in Chicago, Illinois.
Ace Hardware, incorporated in 1928 as Ace Stores Inc., was founded to provide a centralized purchasing organization to supply the founders' and members' stores. Its retail network expanded to hundreds of dealers by 1949, when annual sales reached about $10 million.
After Hesse retired in 1973, Ace was sold to its retailers, becoming a cooperative[1], and the headquarters moved to suburban Oak Brook. Independent owners became dealer-owners and shareholders in the company. Because it's a co-op and not a franchise, each Ace store looks different. Ace has placed a focus on Ace stores exhibiting some similar characteristics, such as signaled and core product lines. The Vision 21 program, as this is called, is aimed to make all stores look recognizable as an Ace Hardware.
Strengths
* Strong brand equity on key brands
* Growing international operations
* Product development skills
* Innovator
* Has a strong impact in the outside community.
* Advertising tries to give a feeling of hope and optimism.
Weaknesses
* Rising SG&A expenses
* Concentrated in few customers in the US
* Highly dependent on the US market
Opportunities
* Higher penetration with smaller retailer customers in the US
* Rising demand for cereals
* Growing foodservice sector
* Steady growth in savory snacks
* Growing health consciousness
Threats
* Commodity price increases
* Private label growth
* Kellogg's
* Erosion of market
Ace Hardware, incorporated in 1928 as Ace Stores Inc., was founded to provide a centralized purchasing organization to supply the founders' and members' stores. Its retail network expanded to hundreds of dealers by 1949, when annual sales reached about $10 million.
After Hesse retired in 1973, Ace was sold to its retailers, becoming a cooperative[1], and the headquarters moved to suburban Oak Brook. Independent owners became dealer-owners and shareholders in the company. Because it's a co-op and not a franchise, each Ace store looks different. Ace has placed a focus on Ace stores exhibiting some similar characteristics, such as signaled and core product lines. The Vision 21 program, as this is called, is aimed to make all stores look recognizable as an Ace Hardware.
Strengths
* Strong brand equity on key brands
* Growing international operations
* Product development skills
* Innovator
* Has a strong impact in the outside community.
* Advertising tries to give a feeling of hope and optimism.
Weaknesses
* Rising SG&A expenses
* Concentrated in few customers in the US
* Highly dependent on the US market
Opportunities
* Higher penetration with smaller retailer customers in the US
* Rising demand for cereals
* Growing foodservice sector
* Steady growth in savory snacks
* Growing health consciousness
Threats
* Commodity price increases
* Private label growth
* Kellogg's
* Erosion of market
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