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In 1978, when two executives Bernie Marcus and Arthur Blank received news they were fired from their jobs at Handy Dan Home Improvement Centers, they decided to take something negative and turn it into an opportunity. They put their experience and knowledge of the business and industry together and developed a business plan to create a chain of home-improvement warehouses. Their idea was to create a business which would be larger and more profitable than any of their competitors. So in 1979, one year after being fired, they acquired their funding and opened three stores in Atlanta which they branded with the name Home Depot. Today, Home Depot is the world’s largest home improvement chain and second-largest retailer after Wal-Mart, operating approximately 2,250 stores throughout the Americas (Parnell, 2014). The Home Depot organization has generated quick growth throughout its operating years. From the first store openings in 1979, the firm has created an exceptional growth pattern, opening their 100th store in 1989 and continuing on into the global market. The company feels that their unique culture and values are what gives them their competitive advantage in the marketplace. Their strengths are in the strong position they have with professional …show more content…
(2014). Home Depot’s New Strategy Tied to E-Commerce Growth. JOC. Retrieved August 9, 2015, from http://www.joc.com/international-logistics/distribution-centers/home-depot%E2%80%99s-new-strategy-tied-e-commerce-growth_20140307.html Fortune, (2015). Home Depot Ranking. Fortune. Ret http://fortune.com/fortune500/home-depot-33/reived August 9, 2015, from http://fortune.com/fortune500/home-depot-33/ Olick, D. (2015). Competition rises as home remodeling goes digital. CNBC. Retrieved August 9, 2015, from http://www.cnbc.com/2015/04/27/competition-rises-as-home-remodeling-goes-digital.html Parnell, J. (2014). Strategic Management: Theory and Practice (4th ed.). Los Angeles:
Lowe’s Companies, Inc. is averaging the opening of about two stores per week. This is part of an unprecedented two billion dollar store expansion, which is the most aggressive expansion in the company’s fifty-five year history; thus, magnifying Lowe’s locality and customer convenience in the United Sates home improvement marketplace. Lowe’s new superstores are currently the largest in the home improvement marketplace, averaging a retail space of about 150,000 square feet. (http://www.lowes.com)
Founded in 1978 by Bernie Marcus and Arthur Blank, The Home Depot is a one stop shop, do-it-yourself home improvement retail store. The first two Home Depot stores opened in Atlanta, Georgia in 1979 as warehouses, each occupying a space of 60,000 square feet (The Home Depot, 2013). When it opened, The Home Depot was the largest hardware store, selling over 25,000 different products and offering various home improvement services (The Home Depot, 2013). From its inception, The Home Depot has provided the best customer service in the industry, as associated guide customers through various facets of home improvement projects. The company is able to provide such service because its associates attend product training, and offers its customers various free home improvement clinics. The Home Depot has transformed the home improvement industry offering the customer its expertise while also providing significant customer savings. ONE TOO MANY SENTENCES!!!
In 2005 Home Depot started experiencing a deteriorating shift in business, accompanied with a critical change in management style, this effective the morale of the employee and made
Bianchi, C. (2006). Home Depot in Chile: Case study. Retrieved January 10, 2011, from http://www.carlospitta.com/Courses/Gestion%20Financiera%20Internacional/Cases/Home%20Depot%20Case.pdf
The company has 8 values they drive: excellent customer service, taking care of our people, giving back, doing the right thing, creating shareholder value, respect for all people and entrepreneurial spirt. They have many policies in place to ensure they keep up with competitors such as Lowes, JC penny, Harbor Freight, Lumber Liquidators etc. An example of such policies is the "meet and beat" policy in which at point of sale they meet any competitors price of an item plus take off an additional 10% off. The Home Depot’s strategic factors include creating an emotional connection with all customers. They have opened customer call centers so customers can call to receive the best customer’s services and fix any issues they might be having. They have recently created a new returns system to increase customer satisfaction as well as a new scheduling system for store employees to ensure maximum coverage at all times. Another strategic factor is product authority. The company aims to keep an assortment of products in all departments. Another strategic factor is productivity and efficiency. The company is dedicated to building the best relationships with its supply chains as well as leveraging new technology that allows them to lower operating cost and increase shareholder value. A strategic
The Home Depot’s marketing strategy consists of home improvement do-it-yourself customers who want to be able to complete household improvement projects, but are not professionals. These homeowners want the opportunity to perform a range of household projects, but need an expert’s advice on the techniques and materials that are necessary to do these tasks. Since the recession, homeowners are looking for opportunities to save money whenever possible. Many homeowners are willing to perform tasks themselves that they once paid a professional to do. In the past, my husband worked for the lawn company TruGreen. As a result, he canceled the contract with the company and decided to take care of the lawn himself. When my husband took on the task of updating the fence around our home, he relied on expert advice from a Home Depot associate, as the right technique to mix and pour the concrete, type of screws and drill, so he could complete the project himself. As a result, he was able to save money by doing the project himself instead of having to pay someone else to complete the task. Home Depot’s current marketing strategy does “fit” with the firms’ strategies at the corporate and business levels. The company current marketing strategy is directed to the homeowner that has a do-it-yourself mentality. Which will promote growth as is relates to its corporate level strategy. The company provides excellent customer service to its customers and offers an assortment of products at an affordable price. This business strategy has enabled the company to remain ahead of its
Nardelli was brought in when the company needed to focus on the cost side of the equations when sales were growing. However his reputation suffered when Home Depot's smaller archrival, “Lowe's Companies, soared more than 200% since 2000, while Home Depot's shares declined 6%”.In addition, The organization never really embraced his leadership style. The company needed a more innovative and constructive leadership. Nardelli came in with new ideas for change, the employees did not have the desire for transformation since they did not feel the need for change and their morale was good. He believed that managing by metrics was the best way to guarantee fairness in judging a person’s performance. When Nardelli acquired control, the store managers felt that they lost their autonomy and independence. This led to the failure of unification of commitment and enthusiasm of his
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
The Home Depot began changing consumer’s perspectives about how they could care for and improve their homes, by creating a “do-it-yourself’ concept. According to the founders, the customer has a bill of rights at the Home Depot. The bill of rights entitles the customer to the right assortment, quantities and price (of tools and home improvement supplies) along with trained associates on the sales floor. Home Depot describes their business strategy as a three legged stool, which stands for customer service, product knowledge and availability and disciplined capital allocation. (Moskowitz,
Lowe’s has been around a long time. They have weaknesses but so many more strengths. Lowe’s is one of the oldest and largest big box retailers. They are the second largest home improvement retailer in the world next to Home Depot. Lowe’s key strengths are its size, market share and distribution network. Lowe’s also knows how to adapt to the needs of time. More strengths of Lowe’s lie in the customer service and store layout. Lowe’s is ranked second in customer satisfaction with Home Depot being last. They spend around 650 million dollars to upgrade their stores and make sure they are set up so that the customers can find everything they need easily. As Lowe’s continues to improve their stores they will continue to gain more loyal
Home Depot’s mission statement states “The Home Depot is in the home improvement business and our goal is to provide the highest level of service, the broadest selection of products, and the most competitive prices. We are a values-driven company and our eight core values include the following: Excellent customer service, Taking care of our people, Giving back, Doing the “right” thing, Creating shareholder value, Respect for all people, Entrepreneurial spirit, and Building strong relationships. (My Strategic Plan,
The Article, "Renovating Home Depot," describes how, since the arrival of the new Chief Executive, Robert Nardelli, the business strategy has shifted to a more militaristic style. In the beginning, Home Depot was a "decentralized, entrepreneurial" business, and now is switching to a different management style. Nardelli loves to hire ex-soldiers, and is perhaps using the armed services as a role model for the new business structure. Under Nardelli's leadership, Home Depot is becoming more centralized and the good financial reports following this are signs that it a good strategy (Grow 50).
|Business |The Home Depot, Inc. is the world's largest home improvement retailer. The company incorporated in 1978 in |
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...
The SWOT analysis is a useful tool for identifying our personal strengths, weaknesses, opportunities, and threats to our plans and goals. According to a “Fuel My Motivation” article (2010), this analysis considers internal influences that can positively or negatively affect our ability to achieve our goals. The internal factors are our strengths and weaknesses. Also considered are opportunities and threats, which are external influences that can have a positive or negative impact on the ability to achieve our goals. I will share how the self-assessment instruments and self-exercises in this course have contributed to assessing and understanding my strengths and weaknesses. I will also discuss techniques I will use to leverage my strengths and understand my weaknesses. In addition, I will consider opportunities that I can take advantage of and the threats that can possibly impede my progress.