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Mohawk Industries SWOT & PESTLE Analysis

ID : 52853753| Feb 2021| 17 pages

COMPANY PROFILE -Mohawk Industries

Business Sector :Manufacturing, Flooring Manufacturer

Operating Geography :United States, North America, Global

About Mohawk Industries :

Mohawk Industries is an American flooring producer company. It is headquartered in Calhoun, Georgia, United States. The company constructs floor covering products for residential and commercial applications in North America and residential applications in Europe. The company leverages the talent of around 37,800 employees in Australia, Brazil, Canada, Europe, India, Malaysia, Mexico, New Zealand, Russia and the United States as of early 2021. In 1875, William Shuttleworth and his four sons came to the United States, to set up a carpet mill in Hudson Valley. In 1902, the company was incorporated as the Shuttleworth Brothers Company. In 1920, when the company merged with McCleary Wallin and Crouse, another mill in Amsterdam, it adopted the name of Mohawk carpet mills. The brands of the company include American Olean, Daltile, Durkan, Eliane, Feltex, Godfrey Hirst, IVC, Karastan, Kerama Marazzi, Marazzi, Moduleo, Mohawk, Mohawk Home, Pergo, Quick-Step, Ragno and Unilin. Mohawk’s portfolio includes soft flooring products (carpet and rugs), hard flooring products (ceramic tile, natural stone and hardwood flooring), laminate flooring, sheet vinyl and luxury vinyl tile. By the end of 2020 the company had targeted to launch more than 400 owned and franchised stores in Russia. Mohawk Industries is the winner of Home 2019 American Business Awards for Ground-breaking Work in Specialty Retail and Sustainability.
Mohawk Industry’s Unique Selling Proposition or USP lies in it being the largest manufacturer, distributor and marketer of ceramic tile and natural stone in the world. The company's mission statement reads, "We're dedicated to running our business in the best way we can, and to making a positive impact in our communities. It's all part of our mission to create innovative products that make life better… and to bring you the best floor possible".

Mohawk Industries Revenue :


US$ 9,970.7 million - FY ending 31st December 2019 (YoY growth, (negative) - 0.1% )
US$ 9,983.6 million - FY ending 31st December 2018

Competitive Analysis of Mohawk Industries

SWOT
PESTLE
The SWOT analysis for Mohawk Industries is presented below in a table followed by the detailed analysis report.
StrengthsWeaknesses
1. Strong and differentiated distribution network with a wide reach
2. World’s largest flooring manufacturer with global presence
3. Market leader in all flooring categories
4. Established presence in ceramic segment
5. Vertically integrated world-class manufacturing
6. Driving performance through innovation and process improvements
1. Allegations and lawsuits regarding fraudulent accounting practices hurting the company
OpportunitiesThreats
1. Expanding growth through retail stores
2. Strong growth opportunity in global tile market
3. Aggressive acquisition strategy driving growth
4. Strong growth expected in Asia Pacific flooring market
5. Expanding E-commerce business to China
1. Acute labour shortage curtailing operations
2. Intense competition in the flooring industry
3. Intellectual property infringement resulting in revenue losses and attracting legal battles
SWOT & PESTLE (combined)
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Detailed SWOT Analysis of Mohawk Industries

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.

The remaining section of “Strength” is available only in the 'Complete Report' on purchase.

Weakness

This section is available only in the 'Complete Report' on purchase.

Opportunity

This section is available only in the 'Complete Report' on purchase.

Threats

This section is available only in the 'Complete Report' on purchase.

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Check Out Analysis of Other Relevant Companies

References used in Mohawk Industries SWOT & PESTLE Analysis Report

1. Supply Chain World - http://www.scw-mag.com/sections/retail/262-mohawk-industries-inc
2. Investor Presentation November 2020 - http://ir.mohawkind.com/static-files/e7d238f3-75b3-4d8f-afaf-8619989e42a7
3. Rise in the number of renovation & remodeling activities are increasing flooring market - https://menafn.com/1101230348/Rise-in-the-number-of-renovation-remodeling-activities-are-increasing-flooring-market
4. Mohawk stock down as new court filings allege multiple issues revised - https://www.nasdaq.com/articles/mohawk-stock-down-as-new-court-filings-allege-multiple-issues-revised-2020-07-14
5. Mohawk Rides the Wave of Change, Showcasing Commitment to a Sustainable Future at Surfaces 2020 - https://www.csrwire.com/press_releases/43443-mohawk-rides-the-wave-of-change-showcasing-commitment-to-a-sustainable-future-at-surfaces-2020
The detailed complete set of references are available on request in the 'Complete report' on purchase.

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SWOT & PESTLE.com (2021). Mohawk Industries SWOT & PESTLE Analysis - SWOT & PESTLE.com. [online] Available at: https://www.swotandpestle.com/mohawk-industries/ [Accessed 20 Oct, 2021].

In-text: (SWOT & PESTLE.com, 2021)

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Mohawk Industries SWOT and PESTLE analysis has been conducted by Monil Shah and reviewed by senior analysts from Barakaat Consulting.

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