Home Depot Case Analysis

Home Depot is the largest retailer in the home improvement industry in the United States. Since its formation, Home Depot has undertaken intensive expansion and acquisition. Home Depot 's growth and success has been linked to its leadership, generic, and intensive growth strategies. The firm 's general strategy offers a variety of products at the lowest price in the market ("The Home Is Where Our Story Begins," 2016). The Home Depot initial strategy was to be the cost leader in the market. For instance, when Marcus and Blank opened their first store, their operational model was to offer low prices every day to their customers. The strategy was a hit among customers as the first store was very successful. Just as the founders had predicted,

Home Depot intensive growth strategies include product development, market development, and market penetration. One of Home Depot intensive strategy is market development. The firm is focused on establishing its presence in new markets. The company method of penetrating new markets is buying out strategic companies. For instance, Home Depot bought Interline Brands to launch its entry into the non-industrial business. The strategy is to gain market presence by acquiring firms with a strong market presence. This approach lowers the barriers to entry of a new market. The company also launches the new product to ensure they gain a fair share of the market. Home Depot launches new products like Glacier Bay, Commercial Electric, and Husky. New product lines contribute to growth and competitiveness. Expanding the product mix allows the firm to appeal to both new and old customers sustaining the customers the substantial gains. Lastly, Home Depot uses market penetration as its tertiary strategy ("The Home Is Where Our Story Begins," 2016). Market penetration allows for gaining market share in both new and old markets. For instance, Home Depot implements special offers and discount sales to acquire more customers from the existing