W.W. Grainger Inc. Report 2020

  • Published: August 2020
  • 10530 Words
  • 42 Pages
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Founded in Illinois, US in 1928, W.W. Grainger Inc. is a B2B distributor of maintenance, repair and operating (MRO) products and services. The global industrial supply company has more than 3,5 million customers and about 25000 employees worldwide. (Fact Book, 2020). The global MRO products distributor works with approximately 5000 suppliers internationally. In 2019 Grainger generated revenues of USD 11,2 billion, 3% increase compared to the previous year (Annual Report, 2019).

Grainger pursues differentiation business strategy. Specifically, the B2B distributor differentiates on the basis of products, offering the widest range of MRO product categories. Grainger’s use of differentiation business strategy also extends to differentiated sales and services. The company delivers its products with high level of speed and convenience and employs highly qualified sales representatives with deep technical knowledge.
Grainger has hierarchical organizational structure and its organizational culture is based on diversity and inclusiveness and value for technology and innovation. Moreover, focus on teamwork can be highlighted as one of integral components of Grainger organizational culture. Business development strategy for the B2B distributor integrates market penetration, product development and market development strategies.

The industrial products distributor immensely benefits from the economies of scale and the company has an extensive experience and knowledge in selling MRO products. At the same time, Grainger has certain weaknesses that can have negative implications on long-term growth prospects of the business. High level of indebtness is a major issue for the company and as of December 2019, Grainger’s consolidated debts amounted to USD 2,4 billion. Moreover, with total 72% of revenues generated in the US in 2019 (Fact Book 2020), the B2B distributor is over-dependent on the home market in the US.

W.W. Grainger Inc. Report contains the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces, Value Chain analysis, Ansoff Matrix and McKinsey 7S Model on Grainger. Moreover, the report contains analyses of Grainger’s business strategy, leadership and organizational structure and ecosystem. The report also analysis marketing strategy, ecosystem and discusses the issues of corporate social responsibility.

1. Executive Summary
2. Business Strategy
3. Organisational Structure
4. Organizational Culture
5. Grainger and Ansoff Matrix
6. SWOT Analysis
6.1 Strengths
6.2 Weaknesses
6.3 Opportunities
6.4 Threats
7. PESTEL Analysis
7.1 Political Factors
7.2 Economic Factors
7.3 Social Factors
7.4 Technological Factors
7.5 Environmental Factors
7.6 Legal Factors
8. Marketing Strategy
8.1 7Ps of Marketing
8.2 Segmentation, Targeting & Positioning
8.3 Marketing Communication Mix
8.3.1 Print and Media Advertising
8.3.2 Sales Promotions
8.3.3 Events & Experiences
8.3.4 Public Relations
8.3.5 Direct Marketing
8.3.6 Personal Selling
9. Porter’s Five Forces Analysis
9.1 Threat of new entrants
9.2 Bargaining power of buyers
9.3 Bargaining power of suppliers
9.4 Threat of substitute products or services
9.5 Rivalry among existing firms
10. Grainger Value-Chain Analysis
10.1 Primary Activities
10.1.1 Inbound logistics
10.1.2 Operations
10.1.3 Outbound logistics
10.1.4 Marketing and Sales
10.1.5 Service
10.2 Support Activities
10.2.1 Infrastructure.
10.2.2 Human Resource Management
10.2.3 Technology Development
10.2.4 Procurement
11. McKinsey 7S Model
11.1 Hard Elements
11.2 Soft Elements
12. Corporate Social Responsibility
12.1 CSR Programs and Initiatives
12.2 CSR Criticism
13. Recommendations

List of Figures

Figure 1 W.W. Grainger Organizational Structure
Figure 2 Ansoff Growth Matrix
Figure 3 W.W. Grainger order generation by customers with more complex needs
Figure 4 Grainger Product Categories
Figure 5 Porter’s Five Forces
Figure 6 Value chain analysis
Figure 7 McKinsey 7S model

List of Tables

Table 1 W.W. Grainger SWOT Analysis
Table 2 Grainger significant facilities

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  • Published: August 2020
  • 10530 Words
  • 42 Pages