Grainger - Task 1
Business model:
“The Company operates two business models. In the High-Touch Solutions segment,
Grainger offers more than 2 million maintenance, repair and operating (MRO)
products and several services, such as technical support and inventory
management. In the Endless Assortment segment, Zoro.com offers customers
access to more than 11 million items, and MonotaRO.com provides more than 20
million items.” (Grainer, n.d.)
Retrieved from: https://invest.grainger.com/home/default.aspx
Strategy for growth:
According to industry consultant Ian Heller, Grainer's (2010) growth has been
possible because the company "defines its target segment by a specific situation:
when customers need products quickly and with no hassle" and provides "the most
locations (...) the most inventory (...) "the best catalog" and "the easiest to use
website".
Also, the company states they have a "high touch model" (Grainer, n.d.) which
means “the pool of customers is smaller, but the level of interaction is much higher”
(Lisiane Ndong, 2021).
Retrieved from https://invest.grainger.com/home/default.aspx
Retrieved from
https://www.linkedin.com/pulse/high-touch-vs-low-touch-what-customer-success-mo
del-should-ndong/
Retrieved from
https://www.mdm.com/premium/sales-marketing/the-secret-to-being-grainger/)
Online presence:
As of March 20 of 2023 they hold the following numbers:
On Facebook, they have 254.895 likes and 265.446 followers on their page.
On Twitter they have 26.2k followers.
On Linkedin they have 177.142 followers and 18.562 linked employees.
On Youtube they have 12100 subscribers.
On Instagram they have 1130 posts and 25.1k followers.According to Hype Auditor
(n.d.) they have a 0.14% of engagement and according to Inflact (n.d.) they have
post less than once a week (0.48 posts), they post around twice a month (2.06).
According to Similar Web (n.d.), Grainger.com hold place #5633 on the global rank,
place #1159 on the United States, place #2 in the United States,place #2 in the
Heavy Industry and Engineering rank. The website also has 9.5 total visits and a
54.27% bouncer rate (Similar Web, n.d.).
Retrieved from https://www.similarweb.com/website/grainger.com/#overview
Retrieved from https://inflact.com/tools/profile-analyzer/
Retrieved from
https://hypeauditor.com/es/free-tools/instagram-engagement-calculator/?username=
grainger
Retrieved from Grainger’s Socials (Facebook, Twitter, Linkedin, Youtube, Instagram).
Its customers and segments:
“Grainger's customers are two million businesses and institutions in more than 150
countries. (Grainer, n.d.)
Region Description Percentage of total
revenue according to CSI
Market:
United States "Grainger is the leading 78.43%
broad line supplier of
facilities maintenance
products serving
businesses and
institutions in North
America" (Grainer, n.d.)
Canada “The company serves 12.32%
more than 41,000
businesses and
institutions across
Canada through 172
branches, six distribution
centers, a French and
English language catalog
and on
acklandsgrainger.com”
(Grainer, n.d.).
Other “While not considered a 9.25%
reportable business
segment, Grainger has
operating units in Asia,
Europe and Latin
America” (Grainer, n.d.).
Retrieved from https://www.experiencedone.com/who/bizsegs.php
Retrieved from https://csimarket.com/stocks/segments.php?code=GWW
Trends in customer's purchasing patterns
Regarding the power tools market, this segment’s value is expected to grow from US
$33.36 Billion (2022) to US $51.2 Billion (2032) according to FMI (2022). FMI (2022)
identifies that the present day consumer of power tools has "dynamic preferences"
which will benefit the sales of cordless,"flexible, mobile and compact tools". There is
also a rising interest in consumers for companies that go green, propose eco-friendly
options and leave fossil fuels behind (FMI, 2022).
Regarding the MRO market, according to Expert Market Research (n.d.), this market
is "being driven by the thriving digitalisation and the rising demand for increased
efficiency in businesses" which will lead to the "development of smart factories".
Retrieved from https://www.futuremarketinsights.com/reports/power-tools-market
Retrieved from
https://www.expertmarketresearch.com/reports/maintenance-repair-operations-mro-
market
Maintenance, Repair, and Operation (MRO) industry state:
According to the report on "Power Tool Industry March 2023" made by Bosch the
company sales “rose 12% in 2022 to USD 95.4 billion" although “they expect 2023 to
be a challenging year with a possible economic slowdown". The report also stated
that during 2022 Stanley, Black & Decker "full year revenue rose 11% to $16.9 billion
after a record 2021", despite this"they believe markets will continue to be challenged
during 2023 as new housing starts are projected to decline 15% to 25% and repair
and remodel activity will decline modestly year-over-year." Lastly, the report also
mentioned that TTI's 2022 "22 revenue rose 0.4% to US $13.25 billion" and Trimble's
Q4 Revenue dropped 8% to $856.5 million.
Retrieved from: https://www.ptnamarketbriefing.com/power-tool-industry
