...Strategy Recommendation: Home Depot Jermaine Singleton Capella University MBA6004-Foundational Skills Business Leaders Jeff Leinaweaver November 15, 2013 Home Depot Incorporated Home Depot is a retailer, which is one of the fastest Corporations in the United States. In the early 80s, the company went public with NASDAQ and join with the New York Stock Exchange. There was a tremendous growth in the company between the 80s and 90s. Home Depot began putting home improvement centers in Canada in 1994 and Mexico in 2001. The company expanded the business to China forming a 12 store chain called The Home Way in 2006. The company also develops a strategic alliance with manufacturers leading in the industry to give customers exclusive products. Home Depot advertises different national brands to set standards for the merchandise use by professional contractors and customers. Home Depot has offices in China, Canada, U.S., India, and Mexico. The company is enhancing the relationships between the customers and the manufacturers and changing the customer’s confidence in the international suppliers. The two largest companies in the industry, which is Home Depot and Lowes, are the high entry barriers. These companies hold the high cost to maintain the success factors with other companies...
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...Home Depot Business Environment Communication Channel Scenarios MGT 521 March 3, 2012 Jacob Nichols Home Depot Business Environment The Home Depot is the world’s largest do-it-yourself home improvement retailer that was founded over thirty years ago in Atlanta Georgia by Bernie Marcus and Arthur Blank (The Home Depot, 2011). Through the lifespan, The Home Depot expanded from a two store operation into the fourth largest grossing retail store as reported by the Fortune 500 listings (CNN Money, 2012). Strategies like price matching, environmentally friendly supplies, introducing Home Depot brands and services, and offering clinics to patrons assisted in Home Depot dominating the do-it-yourself home improvement market. Throughout the lifecycle of Home Depot there have been numerous changes; markets, consumers, direction, and leadership to name a few. Home Depot made adjustments along the way and endured the constant waves of change and in the process developed the orange blooded culture enjoyed by employee and customer. Things change and the Home Depot understand this simple value, but constant is the orange apron and everything it stands for. To date the Home Depot remains a sound corporation even through the recession and unfavorable markets and is in a prime position to generate stronger ROA, ROIC, and ROE measures relative to their closest competitor Lowe’s (Sozzi, 11/2). The pages that follow will analyze The Home Depot and examine what differences...
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...Management Analysis: The Home Depot History, Development, and Growth The Home Depot, founded in Atlanta, Georgia in 1978 by Bernie Marcus and Arthur Blank, experienced growth rather quickly. The Home Depot is “the fastest growing retailer in U.S. history.” In 1981, the company went public on NASDAQ, moving to the New York Stock Exchange (NYSE) merely four years later in 1984. The 1980s and 1990s saw tremendous growth for the company, with 1989 marking the celebration of its 100th store opening. From the time of its foundation, The Home Depot has been able to continue growth by implementing and reinforcing its distinct core competencies. Additionally, The Home Depot experienced aforementioned growth through not only continuously adapting to change, but through maintaining the initial culture and values of the organization. Through emphasizing and sustaining said culture and ensuring providence of good products and customer service to its customers has bolstered The Home Depot’s competitive advantage and forged the company’s reputation as the home-improvement industry leader. Internal Analysis - Strengths and Weaknesses All four of the following, whether strengths or weaknesses, are of utmost importance for The Home Depot. Strengths Pronounced Reputation and Brand Image Due in part to its highly evolved marketing and advertising strategies, The Home Depot has developed a pronounced reputation and brand image within the home-improvement industry. On a...
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..."The Home Depot NYSE: HD, headquartered in Vinings, Georgia, is a home improvement retailer that aims for both the do-it-yourself consumer and the professional in home improvement and construction. It is the second largest retailer in the United States, behind Wal-Mart; and the third largest retailer in the world, behind Wal-Mart and French company Carrefour. The Home Depot operates about 1,900 stores across North America. The company operates stores in the United States (including the 50 states, Puerto Rico, the United States Virgin Islands), Canada, and Mexico. The Home Depot also operates EXPO Design Center stores in select U.S. markets, providing high-end home design products and services. Its 2004 sales totaled US $73.1 billion. It was ranked #13 on FORTUNE magazine's FORTUNE 500 The Home Depot also owns a chain of higher-end home decorating and appliance stores. The Home Depot employs over 325,000 people." The company was founded in 1978 in Atlanta, Georgia by Bernie Marcus and Arthur Blank, and grew rapidly, with sales topping $1 billion annually by 1986. From the moment of its foundation, HD has continued to grow constantly by targeting strong markets with many new homeowners and young people such as New Orleans. Home Depot managed to grow fast by quickly adapting to change and continued to be successful by holding fast to the culture and values of the organization. The constant renewal and the work to sustain culture that produces good products, employees, and customers...
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...“How Home Depot could enter Indian Markets” Cohort 41 Justin Widener, Cole Lewis, Daniel Smith, Kacy Jackson, Pramod Sudhakar, Angela Lintz WMBA 6030: Global Strategy November 14, 2013 Executive Summary Home Depot tried and failed to enter China. In hindsight, the errors Home Depot made seem obvious and many. In the analyses below, we examine Home Depot from an Industrial, Resource, and Institutional perspective. Based on our extrapolation of the findings, we ask whether Home Depot can enter the Indian market, and describe our strategy for how Home Depot might successfully expand globally into India. We believe that Home Depot can gain great value from entering India following our strategy. Introduction and Background Home Depot was founded in 1978 by Arthur Blank and Bernie Marcus. They originally started with two stores in the Atlanta area with about 60,000 square feet each. These stores dwarfed the competition in not only size but also in product offering and availability. They started off offering over 25,000 different SKU’s to customers in everything from power tools to simple easy to use items such as tape and glue (Home Depot). The goal was, as a company, to target and create a market for the “Do it Yourself” or “DIY” market. Until the arrival of Home Depot there was such a market but only local mom and pop shops competed. Home Depot provided a place where they could provide a one-stop shop for DIY and could also provide the “know-how” necessary...
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...Home Depot Service In 1978 Home Depot organization opens the first retail home improvement store in Atlanta Georgia. The organization developed strategic product analysis delivering a variety of assortments to customers. Innovative merchandise targets internal and external customers of the organization for do it yourself projects, professional contractors, free how to clinic and children workshops are available for customers to complete construction projects on different job sites. Home Depot evolved into internationally recognized specialty retailer that markets and delivers 40,000 different building materials, lawn and garden products, home improvement supplies, appliances, and more than 250,000 other products that can be especially ordered (The Home Depot U.S.A., Inc., 2003-2006). It has been noted that “The Home Depot has convenient locations throughout the United States. Stores average 105,000 square feet with approximately 23,000 additional square feet of outside garden area” (The Home Depot U.S.A., Inc., 2003-2006, Our Company, Stores and Product section). A possible solution for addressing and fulfilling the organization’s expectations is to examine policies and procedure requirements for an additional customer service. Home retail improvement products and services in the future will gain efficiencies from departments such as services that are policy written and business procedures through development of more new products demanding customizations from business...
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...Running head: STRATEGIC DIRECTION—HOME DEPOT Strategic Direction—Home Depot Keller Graduate School of Management J. Lambrou, Professor Strategic Direction Introduction What is Strategic Direction? This means taking your company in a direction related to what’s happening in the dynamic environment of what the business provides (be it in a services, manufacturing, technological, or financial area). (Olsen, 2007) Therefore, the strategy and direction the company take are defined by what established and unique value propositions the company has when compared to competitors; operations executed to provide different and tailored value to customers; clearly identifies any tradeoffs and clarifies what not to do; focuses on activities that fit together and reinforce each other; and is continually driven for improvement within the organization and while moving it toward its defined vision. I use The Home Depot (Home Depot here-out) for this paper as I have a part-time job with them. Strategy Home Depot’s simple and straightforward strategy is to ensure it diversifies its operations by having several businesses competing in the different product markets of home improvement. (Home Depot, 2008) The Home Depot has positioned itself within the industry based on a strategy of cost leadership. This operating strategy allows the company to earn above-average profitability by dictating prices from suppliers lowering input costs and minimizing distribution transactions eliminating...
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...Home Depot: Research and Development Improvement Recommendations This paper is submitted in partial fulfillment for Business Marketing (EMBA) - March 24, 2013 Table of Contents Executive Summary 3 SWOT Analysis 7 Strategic Alternatives 7 Recommendations 11 Marketing Strategy 11 Marketing Implementation and Control 13 References 14 Executive Summary Where do you go to buy your home improvement supplies? Have you experienced an exceptional home improvement store that meets all your needs and provides exceptional service? If the answer is no, there are several reasons to shop at your nearest Home Depot home improvement store. You can count on the variety of products to choose from while viewing the floor showcase. If you are worried about transportation, we offer truck rentals and service installations so you can sit, enjoy and relax while we do all the work. However, we are going to change the customer experience, our goals and efforts are to change your experience the minute you step into your friendly Home Depot store. You will no longer have to wait for a cashier to answer your question because an expert associate will be available immediately to help guide you and meet your needs during your shopping experience. To help fulfill the new customer service experience, we will enhance our current Mobile App that will provide navigation around the store along with a product information scanner. We hope to improve your families shopping experience by incorporating...
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...Home Depot Business Proposal Easter B. Fulton ECO 561 June 22, 2015 J. Carl Bowman Home Depot Service The Home Depot was founded in 1978 in Atlanta, Georgia as the first home retail store by Bernie Marcus and Arthur Blank (Home Depot, 2014). To give an extent of mixes to customers the Home Depot affiliation made key item examination. This helped clients who request to complete structure extends on different business ranges the affiliation's innovative stock revolved around internal and outside customers of the relationship for master foremen, free how to focus, do it without any other individual's help assignments, free how to office and childrens' workshops. Home Depot progressed overall and saw as a claim to fame retailer that business segments 40,000 different sorts of building materials, home change supplies, apparatuses and yard and patio nursery supplies, and additionally stock nook things' and stock restricted to match the customer's specific market needs (Home Depot, 2014). The Home Depot has more than 2,200 supportive regions all through the United States (numbering the spaces of Puerto Rico and the Virgin Islands), Canada, China and Mexico. Stores typical 105,000 square feet with give or take 23,000 additional square feet of outside greenery walled in area zone (Home Depot, 2014). One clarification to survey and satisfy the business' possibilities is to look at the strategies and system for a supplementary client administration. Home Depot offers developing...
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...value proposition of Home Depot is to bring unparalleled value to its customers who will most likely make decisions based on value, the best level of customer assistance, convenience of store location and wide assortment product offering. By solving their customer’s home improvement dilemmas, Home Depot offers a unique shopping experience by using the it's own operation strategy to deliver it’s value proposition and meet demand. The home improvement industry is one of the most rapidly growing industries in the world. The global home improvement market is expected to grow at a yearly rate of 2.5% between 2010 and 2015, according to Market Line. The market has a predicted 2015 worth of almost $678 billion. In 2010, building materials led the overall market, generating $389 billion in profit, or 65% of the overall market. So the market demand of Home depot is predictable. According to its 10-K report, “We buy our store merchandise from suppliers located throughout the world and are not dependent on any single supplier. Most of our merchandise is purchased directly from manufacturers, which eliminates ‘middleman’ costs” (Home Depot Inc, 2010). This suggests that due to the diverse supply chain and many suppliers, there is no threat of bargaining. Home Depot also “formed strategic alliances and exclusive relationships with selected suppliers to market products under a variety of well-recognized brand names” (Home Depot Inc, 2010). This suggests that Home Depot has established the...
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...A Strategic Analysis of Home Depot GM599 A Strategic Analysis of Home Depot Introduction The Home Depot (NYSE: HD) is a home improvement, construction products and services retailer operating over 2,000 big-box stores in the United States and abroad. The Home Depot was founded in 1978 by Bernie Marcus and Arthur Blank with the vision of one-stop shopping for do-it-yourself (DIY) customers, installation services for do-it-for-me (DIFM) customers and competitive products for the professional market. Their DIFM installation programs include products such as carpeting, flooring, cabinets, countertops, and water heaters. In addition, the company provides installation of various professional products like generators and HVAC systems. The Home Depot developed strategic product alliances directly with industry-leading manufacturers to deliver the most exclusive assortments to customers. Through a combination of national brands and proprietary products The Home Depot exclusively carries several major brands, including: BEHR Paint, G.E., Martha Stewart Living and Thomasville, which sets the standard for the do-it-yourselfer and the professional contractor. The Home Depot revolutionized the home improvement industry by bringing the know-how and the tools to the consumer and by saving them money. According to the founders, the customer has a bill of rights at The Home Depot, and this entitles the customer to the right assortment, quantities and price, along with trained associates...
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...Introduction Whether you own your home or rent, chances are that at some point you will find yourself looking for something that will lead you to one of these two retail giants. The home improvement industry has evolved from small regional and locally owned hardware stores to these superstores. The top two in the industry are Home Depot and Lowe’s. Each has their eye on moving into international markets, each has superstores in all 50 states and each has evolved along different paths to reach their current positions. According to Fortune 500 Home Depot, Inc. is ranked at #25 and the second largest retailer in the US after Wal-Mart. Home Depot Inc. has its corporate headquarters in Atlanta Georgia. What began in 1979 as two 60,000-foot stores that resembled warehouses has grown to about 2,200 stores across North America, Puerto Rico, and China. Home Depot Inc. is publicly traded on the New York Stock Exchange as NYSE:HD. At the end of 2008 Home Depot Inc. employed 331,000 people. Home Depot sales recorded and posted in 2009 are $71,288.0 mil. Home Depot Inc. is the number one home improvement retailer with Lowe’s coming in second place with sales posted in 2009 at $48, 230.0 mil.. Founded in 1946 Lowe’s went from a small hardware store to the ninth largest retailer in the US. Lowe’s went public in 1961 and began trading on the New York Stock Exchange as NYSE:LOW in 1979. According to Fortune 500 Lowe’s Companies, Inc. is ranked at #47. Lowe’s Companies, Inc. are headquartered...
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...Background The Home Depot was founded in 1978 by Bernie Marcus and Arthur Blank in Atlanta, Georgia after they were fired from their executive post at the Handy Dan Home Improvement Centers in California. The founders began the home improvement company around their vision of “one-stop shopping for the do it yourselfer” opening their first two stores in 1979 in Atlanta, Georgia in a cavernous warehouses that dwarfed the competition stocking 25,000 stock keeping units (SKUs), much more than the average hardware store at that time, and staffing the stores with knowledgeable experts in home improvement and customer service. From the beginning, Home Depot was able to offer not only the best customer service in the industry by hiring employees knowledgeable and experienced in the business and by motivating the sales associates to develop relationships with the customers instead of seeing sales as a transaction, but by popularizing the concept of “do it yourself” (DIY) offering to homeowners and other individuals trainings workshops and clinics so customers could learn how to do it themselves. The Home Depot revolutionized the home improvement industry by bringing the know-how and the tools to the consumer and by saving them money. In 1980, Home Depot opened two more stores achieving annual sales of $22 million from all its four stores. By 1990, the company had opened 145 stores, employing 21,500 people, generating annual sales of $3.8 billion, and becoming the number one U.S. retailer...
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...10/13/13 Matthew Lucht mattcat09@email.phoenix.edu CST Organizational Structure of Home Depot The company that I am actually really familiar in organizational structure is Home Depot, since I used to work there. “The Home Depot was founded in 1978 by Bernie Marcus and Arthur Blank. Along with investment banker Ken Langone and merchandising guru Pat Farrah, the founders’ vision of one-stop shopping for the do-it-yourselfer came to fruition when they opened the first two Home Depot stores on June 22, 1979, in Atlanta, Georgia.” (The Home Depot, 2012, para. 1). They started in a large open warehouse which carried thousands of products, with nationally known brands along with the Home Depot brand. The Home Depot has given great customer service right from the start and has employed knowledgeable people to help offer assistance and answer any questions customers have with home renovation projects. The Home Depot has seen an incredible growth and today is one of the largest home improvement retailers in North America. On an international scale, Home Depot has expanded to Canada, Mexico, and even in China. The competition consists of Ace Hardware and Lowes, which is the main competitor. There are three structures used within businesses: simple, functional, and multidivisional structures. Simple structure is mainly used within smaller companies, and usually the head of the company makes all of the decisions and the employees follow directions from the head of the company...
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...Primary Competitor Analysis Competitor Name: The Home Depot, Inc Headquarters: Atlanta (Cobb County), Georgia Locations: 2,200 Retail Stores in U.S., Canada, and Mexico Annual Revenue: 2013-$74,754,000,000 2014-$78,812,000,000 2015-$83,176,000,000 Slogan/Motto: “More saving. More doing.” Primary Products: -Building Materials (40,000 different kinds) -Tools/Hardware -Appliances (kitchen/bath/décor) -Lawn and Garden Products -Electrical, Plumbing, Flooring, & Heating/Cooling Supplies Primary Services: -Home Depot Home Services (national installation service with pre-screened independent contractors) -Free How-To Clinics -Kids Workshops Primary Target Market: The Home Depot’s primary target markets are the do-it-yourself customer, the do-it-for-me customer, and professionals. This mainly includes Generation Y white, Hispanic, and black males, across the United States with pretty much any education level. Distribution Strategy: Network of distribution centers for store replenishment and ...
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