Despite being one of the biggest home improvement retailers in the world, Home Depot had a lower-interest, one-size-fits-all product category—door chimes—that was losing share and sitting on the shelf. We discovered, however, that doorbell buyers shop more from their proud hearts than their analytical heads. Instead of the latest technology, people really wanted a doorbell that enhanced the character of their home. This made displays downright unshoppable.

We developed a new product strategy that revised the whole experience, identifying three main consumer shopping behaviors by technology, style, and job profileand more than 25 prevalent architectural genres across U. Previously, the chime selection available in the Southwest was the same as in the South. And the East.

And the Midwest. We created a regional merchandising strategy that made sure Home Depot had the right amount of the right products in the right regions, saving money and shelf space. The result? We significantly streamlined SKUs, while crafting an integrated packaging and merchandising strategy that drew in style-conscious shoppers.

Plus, we gave Home Depot a blueprint for revitalizing other suffering commodity categories. Staying Tuned in to Shopping Trends Despite being one of the biggest home improvement retailers in the world, Home Depot had a lower-interest, one-size-fits-all product category—door chimes—that was losing share and sitting on the shelf.

Make a Grand Entrance Previously, the chime selection available in the Southwest was the same as in the South. View Case Study. Let's work together Contact Us.Please join StudyMode to read the full document. They had big plans for the hardware and home improvement industry.

home depot - case study

Today, Home Depot is extremely successful with over 22 million customers shopping weekly and 66 billion in revenue, which makes them the largest home improvement retailer in the world. Just like most companies, Home Depot has had its share of challenges. Inthe reputation of Home Depot was wavering. A new chief marketing officer, John Costello, arrived and had big plans to help improve the website, as well as integrating mass marketing and direct marketing with the in-store experience.

The Home DepotInc. It plans to open new stores in the next three years. Home Depot also operates in Mexico.

home depot - case study

Home Depot specializes in building materials, home improvement supplies and lawn and garden products. The company has been recognized as an innovator in the home improvement retail industry for combining the economies of scale of a warehouse format with the high-level of customer service of smaller retailers.

Home Depot stores are large—typically, square feet—and offer between 40 and 50 different products. Nardelli started at Home Depot in and produced rapid growth for the company because of his cost-cutting measures and centralized purchasing strategies.

Marketing Challenge Nardelli introduced a number of changes that brought the company into the technological revolution and established many new and profitable business processes. Frank Blake must decide If Home Depot was correct in that it was not discriminating, but simply filling positions consistent with those who applied for them and very few women were applying for customer service positionsgiven your reading of this chapter, was the firm guilty of discrimination?

If so, under what theory? Yes, Home Depot was accountable of discrimination towards women due to their standards of hiring by reinforcing gender stereotyping; causing them to be guilty of disparate treatment.

The disparate treatment in this case was due to women being treated differently in comparison to their male co-workers in regards to promotions, pay, and hiring. Female applicants who felt discriminated were mainly those who applied for jobs within Home Depots West Coast Division. They felt they were being overlooked during hiring and bypassed in connection with promotions, salary, and job assignments opportunities within the workplace.

Home Depothowever, felt they did nothing wrong and stated the unfairness of what they were being accused of was due to most female job applicants having experience as cashiers, so they were placed in similar positions, such as, cashier positions, clerical duties, customer service, and so forth. In addition, their Case Study : The Home Depot Preface This Essentials of Strategic Management assignment has been made by three persons which have been working together and individually to finish the assignment properly and in time.

Secondly, we would like to thank the company whose websites we were able to visit and use, to get additional information that we could use for leading the assignment of Home Depot to a successful ending. We can say, that it was a pleasure to work on this assignment and would, in the third place, like to thank each other. The persons who worked on this assignment, for the effort and time that is put in the assignment, that brought us to this finished version.

Content 1. Preface 2. Introduction 3. Problem definition 4. Summary 5. Conclusion 6. Chapter 1: External analysis of Home Depot Inc. Chapter 2: Internal analysis of Home Depot Inc. Chapter 3: Strategic forces. Chapter 6: Competencies transferred to different markets Chapter 7: Large box endless selection versus smaller stores Chapter 8: The home improvement industry. Chapter 9: Corporate Stock We use cookies to give you the best experience possible. The company works in the home enhancement retail industry, that includes numerous markets as diy, expert, and renovation home enhancement.

At the end ofthe company had 1, brick and mortar retail stores, primarily located in the United States, however slightly less than retail outlets were distributed in between Canada and South America. The retail sales of House Depot are numerous, and include developing materials, home enhancement and remodelling, lawn and garden, along with home devices, materials, and tools.

Don't use plagiarized sources. Other retail sales in the house Depot consist of kitchen cabinetry, tiles and flooring, lighting components.

These segments are based on the 3 customer markets, the do it yourself, buy it yourself, and professional customers. This permits Home Depot to look for competitive advantage in specialized retail outlets by specifying the qualities of customers by their purchase type and buyer characteristics.

This implies that Home Depot sustained more inventory expenses in warehousing and circulation, than retail sales supported. In response to this, the CEO at the time, Robert Nardelli, shifted away from the exponential growth strategy and towards reducing warehousing of low-purchase items and boosting in-store item differentiation and sales.

Thus, Nardelli moved from the traditions of the home improvement industry and towards innovation. The case study, Home Depot Incorporated: The Specialty Retailer of Building Materials, examines that the second management strategy was also in contention, where the executive vice president believed that instead of focusing on the service strategy, or the retail market strategy, Home Depot should maintain its segmentation of consumers into specialty stores, which would allow Home Depot to gain competitive corners of the market that it had not yet explored.

In this strategy, Home Depot would be able to market towards the appeal of specialized services. In closing the management strategy analysis, the case study emphasizes the decision of Nardelli as being difficult, as both strategies presented held risk and benefits. Based on this, the pertinent issues facing management processes at Home Depot are directly related to the growth initiative, growth strategy, and implementation of the growth strategy. Analysis and Evaluation of Issues The concern of Home Depot is to develop a management strategy that enhances growth.

There are two main conclusions, as presented in the above case study. First, Home Depot can rely on its traditional method of retail brick and mortar store development with a focus on the under-marketed North-western and South-western United States.

Secondly, Home Depot can focus on the development of specialty stores which are geared towards the segmented consumer markets. Key Concepts Lippert, Schwieger, and Schweiger p 13 examine that options to help a company achieve strategic growth are highly relative to the ability of the company to take action and rely on financial viability.

Thus, a strategic growth initiative has the objective to be consistent with corporate growth and profit objectives through the development of key individuals in the organization Lippert, Schwieger and Schweiger The focus of the growth strategy should be in the ability of Home Depot to maximize efforts with respect to investment opportunities, gather valuable and real-time data on existing market opportunities and strive for industry-changing innovations on an ongoing basis Lippert, Schwieger and Schweiger The concern of either strategy presented to Home Depot is relative to that of all corporate entities.

The growth strategies should therefore include diversity in innovation, rather than relying on the older ideals. Strengths Home Depot has a strong market position as one of the largest home improvement retail stores in the United States.

The sales volume allows Home Depot to maintain strength in domestic and foreign markets. The strong market position inidicates that the traditional growth initiatives have facilitated consumer support. Furthermore, Home Depot has a diversified and balanced brand mixture. The company stocks major branded appliances and a wide range of its own store-branded products. While there has been some worry regarding financial viability, Home Depot has remained the top domestic retailer in the home improvement market, and has a wide range of resources it can use for supporting corporate growth and new market entry.These 2 things led to an avalanche of other problems that almost took Home Depot down the path of insignificance.

Managers were not regulated. Home Depot also offers services to its consumers. With its headquarters in Cobb County, Georgia, the company employs more than three-hundred fifty five-thousand people and operates two-thousand one-hundred sixty-four big-box stores across the world including, all fifty states, the District of Columbia, Puerto Rico, the Virgin Islands, Guam, Canada, Mexico and China wikipedia.

The Home Depot, Inc. Case Study Analysis & Solution

The company employs a workforce of more than Home Depot Case Study 1. In what ways can a decentralizing and b centralizing authority help an organization like Home Depot to improve its performance?

The case of Home Depot brings about the opportunity for one to view both the benefits of centralized and decentralized authority and the benefits that it brings to an organization.

As noted by the success of the Home Depot, it is vital that mangers in businesses know which form of authority is appropriate during certain stages of the.

Of course, the two gentlemen had a good idea and want to address the needs of consumers to provide them with high skill sale associates, quality assurance and a brand with the. Case Study: The Home Depot Preface This Essentials of Strategic Management assignment has been made by three persons which have been working together and individually to finish the assignment properly and in time.

Secondly, we would like to thank the company whose websites we were able to visit and use, to get additional information that we could use for leading the assignment of Home Depot to a successful ending.

We can say, that it was a pleasure to work on this assignment and would, in the.

Home Depot Case Study

Home Depot offers 2, stores worldwide. These two individuals originated there dream from a coffee shop in LA during Home Depot distributes varies targeting, segmentation strategies, and market research when selling products. With its network of stores in three countries, it has a. Page Break Transformation at Home Depot Case Study Introduction Home Depot is one of the few businesses that come to mind when thinking about home improvement and do it yourself projects.

But, it is not necessarily the first one that comes to mind considering its competitors like Lowe 's, Ace Hardware, or True Value. This is most evident by looking at financials of the organization, in stock. Since developing its environmental principles on the twentieth anniversary of Earth Day inHome Depot has been on the forefront of environmental. They have developed many programs to address environmental concerns and have garnered support from the National Retail Hardware Association and Home Center Institute.

They initially began using recycled. Home Depot case study Essay Words 3 Pages. If Home Depot was correct in that it was not discriminating, but simply filling positions consistent with those who applied for them and very few women were applying for customer service positionsgiven your reading of this chapter, was the firm guilty of discrimination?

If so, under what theory? Yes, Home Depot was accountable of discrimination towards women due to their standards of hiring by reinforcing gender stereotyping; causing them to be guilty of disparate treatment.

The disparate treatment in this case was due to women being treated differently in comparison to their male co-workers in regards to promotions, pay, and hiring. Female applicants …show more content…. The Job Preference Program has helped the company eliminate discrimination and other barriers within the recruitment process. Since its roll-out inthe program has reduced employee turnover and in a single year, female and minorities have attained management positions increased by 28 to 30 percent from earlier periods.

This system has also shown to be a huge success among managers as they feel they are now able to prescreen adequately qualified applicants. By having such technology in place a company can avoid fines, penalties and costly litigation of unhappy employees feeling discriminated and pursing legal actions. In addition, technology can address some diversity by providing employees with online trainings which will enable them to apply to new positions within the workplace and.

Show More. Read More. Popular Essays. Open Document.From 7 mio USD of revenues in to 64,8 bn in Revenue growth was generated mainly due to external growth coming from mergers and acquisitions. Company went through some structural changes when in first non funder Bob Nerdelli became the CEO of the company. October 1. What do the financial ratios in case Exhibit 7 tell you about the operating performance of Home Depot? What additional information do the different ratios provide?

How sensitive is return on capital to the forecast assumptions in case Exhibit 8? Business Analysis of Home Depot Inc. From the start, associates…. Week 1 home depot Case study For this week Human Resource Management course we were asked to read the Case Study found on page and answer the supplemental questions in detail. The first question asks; if Home Depot was correct in that it was not discriminating, but simply filling positions consistent with those who applied for them and very few women were applying for customer service position given your reading of this chapter was the firm guilty of discrimination?

If so, under what theory….

Home Depot Case Study

Case Study of The Home Depot Preface This Essentials of Strategic Management assignment has been made by three persons which have been working together and individually to finish the assignment properly and in time.

Secondly, we would like to thank the company whose websites we were able to visit and use, to get additional information that we could use for leading the assignment of Home Depot to a successful ending. We can say, that it was a pleasure to work….

Home Depot was founded over 40 years ago with two stores, based in Atlanta and has become the U. In the past, consumers used to shop at small hardware stores and be limited in what they could purchase or even have to wait long periods for out-of-stock or custom-order goods to arrive. Now with Home Depot and other big-competitors, the merchandise…. The Home Depot is a highly successful retail industry that has expanded globally.

The Home Depot has a wide variety of supplies and materials for all home improvement projects. They even have tools, equipment, and trucks that can be rented out to assist…. SWOT analysis is the strategic plan that allows a company to establish the strengths, weaknesses, opportunities, and threats that affect an enterprise. This entails the identification of an organizations objectives and the determination of the external and internal factors that are both favorable and unfavorable. SWOT analysis allows an organization to plan on the strategies to be adopted to promote organizational performance.

Home depot and Lowe 's Companies Inc. The following analysis of each company will examine the home improvement industry, the individual companies, their operating philosophies, their financial strengths or weaknesses, and a final conclusion on which company would be a better long-term investment. Home Depot A. Essays Essays FlashCards.

Browse Essays. Show More.The SWOT analysis framework shows the internal and external strategic factors that affect organizational development. For instance, the company emphasizes high quality service to address competitive rivalry.

Home Depot SWOT Analysis & Recommendations

Considering the increasing saturation of the home improvement retail market, Home Depot needs to develop innovative approaches and strategies to overcome weaknesses and take opportunities indicated in this SWOT analysis. With its current market leadership, Home Depot successfully does so, although the firm must keep evolving to withstand the threats in its business environment. This aspect of the SWOT analysis framework deals with the organizational characteristics that make the business effective.

In the case of Home Depot, the following are the main strengths:. The company uses excellent service to differentiate itself from competitors. For example, Home Depot stores have carpenters and plumbers who give expert advice to customers about their home improvement projects. This aspect of the SWOT analysis framework points to internal strategic factors that hinder or reduce business growth. In the case of Home Depot, the following are the main weaknesses:. This condition discourages suppliers from doing business with competing firms.

Another weakness of Home Depot is the relative ease of imitating its business. Home Depot is also weak because it is largely dependent on the U. This aspect of the SWOT analysis framework deals with industry or market characteristics that support business development. In the case of Home Depot, the following are the main opportunities:. Home Depot has the opportunity to globally expand its business and supply chain. This is a major concern, especially because the company currently has minimal presence in overseas markets.

In addition, Home Depot has the opportunity to diversify its business, such as through additional acquisitions of firms in a new industry or market. This aspect of the SWOT analysis framework points to external strategic factors in the industry or market that could reduce business capabilities.

In the case of Home Depot, the following are the main threats:. In relation, the company faces the threat of substitutes, which include home improvement products available from general merchandise retailers like Walmart.

Also, many online retailers now offer similar home improvement products. In addition, any slowdown of the U. In this regard, the threats identified in this SWOT analysis show that Home Depot must emphasize stronger competitive advantage and global expansion.

The issues identified in this SWOT analysis of Home Depot show that the company must focus on global growth and expansion. For example, the company can expand in other regions, especially high-growth markets in developing countries.Indicate where the firm lies among Porter's Competitive Strategies.

What business is Home Depot in? What business es were them in both before, and after, Bob Nardelli arrived? An organization is created to achieve some goals and objectives that are decided by the top management of an organization. Thus, it is the basic responsibility of an organization to evaluate the basic requirements of a company that is based on the goals, design and strategy of the company and bring changes according to it.

The company is known to be number one home improvement retailer in the world and ranked number two in the United States. The company is known for having various different methods in terms of differentiating from the competitors. However, the expenses of the company are continuously rising, and the overall layout and structure of the stores are old fashioned.

Productivity of the company is constant along with a decrease in stock prices. Moreover, the revenue growth of the company is way slower than the overall industry average. However, the company has made its focus towards international expansion and there is growth in global sourcing as well. The Home Depot has invested a lot in its IT dept, and they will get a return from it soon. Furthermore, the home improvement market is on the saturation phase particularly in North America.

By identifying and analyzing the internal and external analysis of HD, the mission of the company is to offer services and products to its customers that are best in terms of price and quality as well. The mission statement of the company is based on building relationships with all the stakeholders that allow HD to deliver their products along with high emphasis on customer service. The objectives of the company are based on its mission statement.

The basic objective of Home Depot is to deliver customer service in the best way possible and to maintain its leadership position. Further strategy of the company includes market expansion and profitability. Moreover, the company is aggressively seeking for efficient facilities, cost reductions, and tight controls. Draw Home Depot's organizational structures pre- and post- Nardelli on a separate sheet. Consider using or downloading a free day trial of MS Visio design software.

In Marcus and Blank era, the strategy followed by Home Depot Inc was based on decentralization and giving high freedom and autonomy to the managers. Both the founders of the company have made the foundations of the company on the inverted pyramid that is focused more on customers and customer service than the top management of an organization. The company was based on do-it-yourself concept.

The company has given autonomy to its managers that give and encourage them towards innovation and responsiveness.

home depot - case study

Furthermore, the overall management style in HD was highly decentralized with no formal reporting authority. There is hardly any communication among the managers and thus, limited ability to negotiate national deals. The CEO himself preferred to hire personnel from the military background.