Mohawk Industries SWOT & PESTLE Analysis

Strength

1. Strong and differentiated distribution network with a wide reach: Mohawk industries offer their products via three business verticals, namely; tiles, carpets and floorings. All the business segments have their unique manufacturing and supply chain services. The company is integrated end-to-end and thereby delivers quality products at a lower cost. Mohawk’s Daltile company recently bought Marazzi operations in EU and Russia, which made the company the largest tile-manufacturers on the planet. From across the ten production facilities in North America, four regional distributions and three different channels: a network of 250 sales service centre, retail home centre and independent distributors, Daltile’s tile and natural stone products are produced and distributed. The ability of Mohawk industries to track shipments, inventory requirements and freight movement is ensured by a sturdy approach to its S&OP processes.

2. World’s largest flooring manufacturer with global presence: Mohawk Industries is the world’s largest flooring company offering both hard and soft surface products for both commercial and residential applications. It has its presence across 5 continents. It has its production operations spread in 19 countries and selling and distributions across 170 countries. Their business is vertically aligned from designing to distribution, benefiting the customers and business due to higher operational efficiency in-turn leading to higher customer satisfaction. The floorings that they offer are tailored and custom made to the preferences and needs of the markets they serve. Approximately, 60% ( across last three fiscals, until 2019) of the American flooring manufacturer’s revenue is generated from sales in the US alone while the remaining 40% is raised from international sales ( Europe, Russia and others) outside of the US.

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Weakness

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Opportunity

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Threats

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Political

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Economic

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Social

2. Expanding business through E-commerce: The rise of the E commerce has changed the consumer buying behavior. E commerce and online shopping activities have surged during the pandemic as a result of demonstrated convenience, cost factors and a host of product ranges offered. Mohawk Industries launched an ecommerce website ‘mohawkhome.com’ in April 2018 which inspired retailers and brick and mortar stores to purchase rugs. Consumers can discover products based on lifestyle preferences, such as kid-friendly, pet-friendly or high-traffic rugs, and four key design trends: bohemian, farmhouse, mid-century modern, and Scandinavian. In 2020, Mohawk officially entered China and launched its products for sales. The Chinese E commerce market is rapidly expanding and is expected to touch USD 4 trillion by 2023 .

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Technological

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Legal

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Environmental

1. Sustainability on the shop floor: Increasing popularity and awareness amongst the millennials and older generations to use eco-friendly products is gaining traction. Mohawk Industries recycled nearly 7 billion plastic bottles in 2019. These bottles are used to create carpets by combining with resin to form polyester fibers which are eventually spun to form durable yarn. Nearly 25% of all the bottles recycled in North America, are used by EverStrand carpets. Additionally, the company has made more than 500 producs with recycled contents thereby reducing bioburden on the environment. In comparison to 2010, its greenhouse gas emissions have fallen by 19% and water consumptions have reduced by 500 M gallons since 2015.

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