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Internal Company Analysis Present Strategy Research Proposal

Overall, Masco is struggling, but this is reflective of struggles in the industry as a whole. The company therefore is generally performing on par with the industry, or perhaps slightly more poorly. With declining sales, and general industry malaise, Masco has struggled to perform. Despite a diversified product range, Masco has demonstrated that its products are not sufficiently differentiated in order to withstand the rigors of a slump in the housing market. Even with the congruence between Masco's different product lines, the strategy has not been a success. Masco share price has dropped significantly, equity has been eroded. Masco shares were worth over $35 as recently as January 2005 but now trades at $7.66.

Strength & Weaknesses

Masco has several strengths. These include its diversified product lines. They have five major businesses, each providing revenues in excess of $1 billion. This diversification provides insulation against downturn in any one market. These businesses have high synergy with one another. Another strength is the company's significant manufacturing facilities. This gives them the ability to expand, and gives them greater control over quality relative to many of their competitors. The company has a wide range of products and brands. These brands...

These strong brands can be leverage for future success.
There are also several weaknesses. The main weakness is the poor performance of certain segments. The company's revenues declined significantly last year. Contributing to this was a 17.2% decline in the Specialty Products segment. Cabinets declined 13.9% over the same period. These declines highlight the company's dependence on the new housing market. Another weakness is high dependence on the U.S. market. The lack of diversification has subjected Masco to declines in economic performance. The company generates 78.8% of its sales from the North American market. Further to the lack of customer diversification is another weakness -- overdependence on Home Depot. Over 20% of Masco's revenue comes from Home Depot. As HD goes, so does Masco. This overdependence is an area of weakness -- should Masco lose Home Depot, it would be in dire straits (Data Monitor, 2008).

Works Cited:

MSN Moneycentral. Retrieved April 3, 2009 from http://moneycentral.msn.com/investor/invsub/results/hilite.asp?Symbol=MAS

Masco 2007 Annual Report. Retrieved April 3, 2009 from http://www.masco.com/investors/pdfs/2007MAS.pdf

DataMonitor Company Profile: Masco Corporation (2008).

Sources used in this document:
Works Cited:

MSN Moneycentral. Retrieved April 3, 2009 from http://moneycentral.msn.com/investor/invsub/results/hilite.asp?Symbol=MAS

Masco 2007 Annual Report. Retrieved April 3, 2009 from http://www.masco.com/investors/pdfs/2007MAS.pdf

DataMonitor Company Profile: Masco Corporation (2008).
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