HOME DEPOT INC

Home depot Inc



Home depot Inc

History

Home Depot offers good quality products such as home improvement products, lawn and garden supplies. Installation services for these products are offered too. Home Depot like Wal-Mart Company offers low prices every day. Operational efficiency had been the crucial part of achieving these low prices while still offering the high level of customer service. company assesses and upgrades its information to support its growth, reduce and control costs and enable better decision-making. From installation of computerized checkout systems, to implementation of satellite communications systems in most of stores, company had shown that it has been and would continue to be innovative in its operating strategy. In year 1994 Home Depot introduced the prototype store format that offered about 32,000 more square feet of selling space and the significantly broader and deeper selection of products and services, as well as the more convenient layout than traditional stores (Marcus 1999). These Type (V) stores were designed around the design center, which grouped complementary product categories. Therefore, this wide store capacity enabled Home Depot to stock like 40, 0000 to 50,000 products in each store. I think that this is the very good strategic factor that enables store to offer the wide variety of products.

Some of strategic factors that Home Depot faces are related to product quality, price, advertising, store capacity, competitors, and customer's independency and satisfaction. Most of these strategic factors helped in growth and popularity of Home Depot (Jennifer 2007).

Lowes is main competitor against Home Depot. Both companies have big stores, and many products. But Home Depot is still number one. Mike Brune from Rainforest Action Network declared that “It's been the busy month for us all as we attempt to find out implications of Home Depot victory on entire DIY (do-it-yourself) industry, get all important details of Home Depot's new policy, and actually determine to what degree new policy is the victory at all.

Congratulations on being number one in your industry. I would like now to discuss reasons behind this success for year 2002. I think that strategies that you and your employees are following and great customer service are leading to growth and success of your company.

SWOT analysis

Strengths Brand Awareness - Home Depot is world's largest company in industry home improvement retailer, with revenues exceeding $ 70 billion. In particular, while Home Depot is fourth largest retailer in United States is largest in Canada and Mexico. In addition, ranks 127th on Forbes Global 2000 list of largest companies. This dominance increased brand awareness for private labels such as taps Pegasus, Husky Hand Tools and Vigoro lawn care products. This brand awareness is fate of Home Depot because recent studies show that 80% of buyers have the positive attitude about private brand labels and some even perceive their quality is superior(Evelyn 2007). Rapid Deployment Centers-Home Depot plans to increase its use of rapid deployment centers (RDC). EDR allows use of the single request to consolidate product requirements and quicker replenishment ...