Introduction
The Just family has operated our hardware store in this community for three generations. Our store has supported all of our family members very well in all of our years in business. We have recently been informed that Home Depot is planning on opening a new store in our community. The following is our plan of action to stay in business and continue to serve our community.
Problem
Currently Home Depot is planning on opening a new store in our community. We foresee this posing a huge financial threat to our business. Being a small locally owned hardware store, we are not able to obtain huge volume discounts like the big box stores. Currently our hours of operation are significantly shorter than Home Depot. Home Depot is a nationally renowned name brand store, which in itself will be a significant hurdle to overcome. Home Depot has a huge advertising budget, which includes NASCAR sponsorships and national television advertisements. The paramount concern for us is the competition they will impose relative to our customer base.
Current Situation
Seymour currently has one other hardware store located in the heart of the city in addition to ours. Both of our businesses have the same hours of operation, which are Monday through Friday 8am to 5pm and 8am until noon on Saturday.
Our store has seven employees currently. Four are very knowledgeable individuals with a total of 120 years of experience between them. Two other members work part-time throughout the week stocking shelves and cleaning, while the last employee does the paperwork and ordering for the store.
A huge percentage of our customers look to us for advice on how to repair their problems. They value our expertise in plumbing, electrical, paint, and personalized customer service. We believe we have an advantage in this area. Currently, we don’t offer any other services except waiting on the customers, answering questions, and on a limited basis, filling small orders from a limited supply base.
Possible Causes of the Problem
We believe that Home Depot’s purchasing power could be the biggest issue facing us. They are a multi-billion dollar industry dispersing products nationwide. The result is providing lower cost product to the customer, while at the same time offering convenient one-stop shopping.
Alternative Approaches
After doing some sole-searching and conducting some poles within the community, we have come up with some ideas that might help us overcome the competition with Home Depot.
After researching Home Depots financials I would invest money in Home Depot by purchasing stock. In my research there was a lot of talk about how popular home improvement is and how many people prefer the do-it-yourself aspect. While I am sure Home Depots numbers have been better, before the recession, I do not for see Home Depot going under anytime soon. I think it is a stable company that will be in business for many years to come.
“Thrift is the watchword of Jewtown. It is at once their strength and fatal weakness… Money is their God.”(Pg.
Lowe’s Companies, Inc. stared out as North Wilkesboro Hardware in Wilkesboro, North Carolina. North Wilkesboro Hardware was officially changed to Lowe’s Hardware when James Lowe’s portion of North Wilkesboro Hardware was bought out by his brother-in-law, H.C. Buchan fifty-five years ago. Today, Lowe’s is the second largest home improv...
Wal-Mart represents the sickness of capitalism at its almost fully evolved state. As Jim Hightower said, "Why single out Wal-Mart? Because it's a hog. Despite the homespun image it cultivates in its ads, it operates with an arrogance and avarice that would make Enron blush and John D. Rockefeller envious. It's the world's biggest retail corporation and America's largest private employer; Sam Robson Walton, a member of the ruling family, is one of the richest people on earth. Wal-Mart and the Waltons got to the top the old-fashioned way: by roughing people up. Their low, low prices are the product of two ruthless commandments: Extract the last penny possible from human toil and squeeze the last dime from its thousands of suppliers, who are left with no profit margin unless they adopt the Wal-Mart model of using nonunion labor and shipping production to low-wage hellholes abroad." (The Nation, March 4th 2002 www.thenation.com/doc.mhtml?i=20020304&s=hightower).
Working in a Store Support Center, rather than a corporate headquarters, their leadership team knows that the most important people in the fabric of the company are the store associates and store leadership teams. Frank Blake was appointed as the Chief Executive Officer of Home Depot in January 2007 (Sellers, P.). He joined Home Depot in 2002 as executive vice president of Business Development and Corporate Operations and was responsible for real estate, store construction, credit services, strategic business development, growth initiatives, call centers and the Home Services business.
An article in CBSnews.com states that Home Depot has more stores than Lowe’s. However, Lowe’s has its advantage by setting up locations where it is easy for customers to shop. The article continues to say that Lowe’s focus more on service and customer’s experience compared to Home Depot.
Opening its doors for the first time in 1946, Lowe’s is now the second largest home improvement chain in the world, operating over 1,800 stores in the United States, generating $56.2 billion in sales and $2.6 billion in net income for 2014 (Lowes Newsroom, 2015). Employing around 265,000 personal making them one of the top employers in the nation, there is no question that Lowe’s must be doing something right. According to Lowes Newsroom, “Lowe’s professional customers represent approximately 30 percent of total sales, approximately 16 million retail and professional customers are served each week. (2015, para 3) “Never Stop Improving”, is Lowe’s slogan; encouraging employees and customers to work together to maximize their in store
In 1890 Jacob Riis, a Danish migrant and New York Times reported introduced the immigrant problem to Americans using photojournalism in his book How the Other Half Lives: Studies among the Tenements of New York. This book provided insight into the harsh lives of the immigrants living in the slums of New York by giving photographic evidence that spoke to the hearts of many Americans. At the time many were unaware of the difficult challenges many immigrants faced and Riis brought up this social issue. Riis himself however has some bias and delineates these people into groups of the “deserving poor” and “undeserving poor”. Despite his muckraking skills and attempts to reveal the hostile conditions of immigrants Riis has some racial prejudices
The Home Depot is one company, of many, in the home improvement industry. This market is relatively easy to enter, in fact many materials, previously only at home improvement facilities are now available at e-commerce sites, such as “Amazon.com”. There are multiple suppliers, but those in the industry attempt to negotiate contracts with suppliers, limiting them to whom they may supply. Buyers have a great deal of power as the products sold are easily able to be substituted by products at other organizations in the industry. However, the Home Depot has built its organization so that replication of their processes and systems would be extremely difficult to replicate. They value their employees, their customers, the environment, and finance
Some core competencies that must be exploited are: Brand Kmart is an existing well-known and trusted national brand in USA Kmart has private label and designer clothing that is well endorsed Infrastructure Kmart has a large number of well-located, low-cost, leased stores in urban far away from competitors through out the country ( Appendix B ). Staffing Confidence by the market in Kmart is created by the achievements of its staff and management. With the turn-around strategy in place, new blood has been put into the top management structures. In any renewal there will be retrenchment as unprofitable stores are closed. This can be used as an opportunity to retain and move high performing staff to where they are needed and to get rid of non-performing staff. Anderson the chairperson of Kmart is well supported by Wall Street and the board of Directors. These new staff members enter the company with needed skills to address problems in certain areas that previously were poorly managed such as inventory control and merchandising. Store locations, layout and Performance Stores conveniently located away from competitors like Wal-mart and Target therefore less to compete for customers face-to-face. There are 250 non-performing stores who have already been identified as being more cost effective to close than continue with running costs. Expertise exists in-house for the planning of store layout and appearance to meet different customer segments. This concentration of effort will enable focus on key areas Technology Kmart has already invested in good retailing systems. The system can be use to control inventory, supplier payments, track customer buying and monitor income versus profit margins across all stores. Research and Development The planning department is well established and in cross-functional to provide various perspective. The planning department to ensure that strategies at all levels are executed can further use the access to past data and knowledge of changes in buying patterns. Financial Backing JP Morgan Chase has agreed to support Kmart to avert the current threat of closure due to bankruptcy.
• Request a Lowe’s - This is just as simple as it sounds! Do you want a new Lowe’s store somewhere? Just ask! A form requests your name and contact information, comments and asks if you would like to be contacted. I don’t know of another retailer who does this but what a great way to have the market place tell you where there is a need for your business to
Along with the gaining in its net earning, Home Depot present a strong financial position to its investors, also provided valuable financial information to its potential investors that how Home Depot generated and spent its cash, and what changes in the cash balance within the period. Also, the cash flow helps Home Depot management to identify financial opportunities and risks; this statement ensures the company’s business is heading in its planed
Second, the rapid development of the Home centers such as The Home Depot, with prices 30% less than the traditional hardware store made Black & Decker to lose market share to Makita. As per Exhibit 2 we could notice that in the home center channel that represent 25%of the trades...
Home-Fix prides itself on its wide variety of home improvement products, this allows customers to hopefully settle their home improvement needs within one trip. However stores like 1-stop Superstore sell an incredibly large variety of goods, including home improvement products.This makes supermarkets such as 1-stop Superstore and Giant a substitute for Home-Fix as customers are able to purchase whatever they need from the superstore as well as do their regular grocery shopping at the same time as well.
When entering the nursing home, I expect to see many elderly people as well as the supporting staff. I also expect to see patient rooms, an activity center, and possibly a recreational lounge. I predict that I will feel somewhat heartbroken for the elderly men and women who have a disability that has put them in