The Home Depot Case Analysis
“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
magazines 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.”
http://en.wikipedia.org/wiki/Home_Depot#The_Home_Depot_today
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 has helped Home Depot maintain its competitive advantage and
lead the retail building industry.
The companys management put a lot of emphasis on taking care of its employees,
encouraging an entrepreneurial spirit, treating each other with respect, and being
committed
to the highest standards.
The stores and their merchandise were set up that all the stores were very similar.
Operational efficiency has been a crucial part of achieving low prices while still ofering
high level of customer service. The company was assesing and upgrading its information
to support its growth and control cost, and enable better decision making. The company
continued to see greater efficiency as a result of its Electronic Data Interchange program.
Merchandising included all activities involved in the buyig and selling of goods for profit,
and the merchandising strategy for Home Depot followed a 3-prolonged approach: (1)
excellent customer service, (2) everyday low pricing, and (3) wide breadth of products.
To maintain its competitive advantage Home Depot employed the clustering strategy, and
it was also the the only one to offer quality products such as Prego laminate flooring,
