Case Study: The Home Depot

Home Depot (HD) is a home improvement retailer specializing in a high volume and low cost strategy. HD offers a variety of products spanning from lawn and garden to home improvement. Table 1 compares Home Depot to Lowes. HD overall market cap is more than 2 times Lowes. HD tends to be more affected by movement in the market than Lowes as demonstrated by their Beta values.

The Home Depot is the largest home improvement retailer in the world with over 2,200 stores in the U.S., Canada and Mexico. Throughout those stores, there are about 400,000 employees who strive to provide excellent customer service to every customer, every day. I had the pleasure of being one of those employees, working as a customer service associate at the Home Depot in Garland, TX.

The Home Depot’s two main customers are at home “do-it-yourselfers” and contractors. The main products and services offered help solve the wants and needs of customers involved with home construction and maintenance,

The growing trend of home improvement has perpetuated a larger demand for box store home improvement shops such as Home Depot and Lowe’s. There are several types of companies that contribute to the booming renovation industry. Home Depot and Lowe’s provide all the

More savings. More doing. Now that’s the power of Home Depot (homedepot.com). “ The Home Depot was founded in 1978 by Bernie Marcus and Arthur Blank, along with investment banker Ken Langone and merchandising guru Pat Farrah” (corporate.homedepot.com). The founders envisioned a “one-stop shop” for the do-it-yourselfer. The first Home Depot opened June 22,1979 in Atlanta, Georgia. The first stores had around 60,000 square feet that dwarfed the competition stocking over 25,000 SKUs much more than any other hardware store at the time (corporate.homedepot.com). As a facade to look like there was an abundance of merchandise The Home Depot would stack empty boxes on the shelves. Home Depot has come a long way since their humble beginnings.

The Home Depot stores are always stocked with merchandise that is localized to match your area's specific market needs. They heavily promote a low price guarantee that targets any competitors advertised specials. Furthermore, they also have a sizable special order business that

The Home Depot knows that they must stay on top of technology and management must be able to organize this function in a way that surpasses the competition, pleases the customers, and keep the employees satisfied.

If we look at Home Depot's business segments and the statistics on new home sales, we can see where the challenge is. According to the Commerce Department, sales of new homes grew by 6.6% in the month, setting the annual pace for 2010 to 307,000 total units sold. Although, there was an increase in September, this annual pace is the worst on new home sales since 1963, even when mortgage rates are at an all time low. This signifies why there would be disappointment from Home Depot. It is quite obvious that they will continue to struggle, at least through the 4th quarter of this year due to an industry dependent upon a strong real estate market.

Thirdly, redefining the market Home Depot is now synonymous with home-improvement, it is done so through great customer service, knowledgeable

Home Depot and Lowe's believe in big warehouse space, an informal atmosphere and low prices. They are able to offer the lower prices to consumers due to their purchasing power. Inventory differs depending on the story type, home centers typically sock more lumber and building supplies, as their biggest customers are contractors. They pay their floor employees minimum wage, and keep overall costs down by keeping them as part time employees.

The Home Depot is helping people do more with their hard earned money. From modest projects like updating your bath to small projects with a big impact like paint, The Home Depot can help you get more done in your home for less. That's the power of the world's largest home improvement retailer. The Home Depot. More saving. More doing. Gift cards may be redeemed at any The Home Depot stores and online. They never expire and no service fees will ever be charged when purchasing or using The Home Depot Canada gift cards.

When disaster strikes, The Home Depot is among the first organizations on the scene to ensure its customers have the supplies, resources and support they need to rebuild their homes and communities.

there are many types of product that you can purchase at the home depot. In total there are 20 departments at The Home Depot. they are appliances, bath, blinds & décor, building materials, cleaning, doors & windows, electronics, flooring, hardware, heating & cooling, kitchen, lawn & garden, lighting & ceiling fans, lumber & composites, out living, paint, plumbing, storage & organization,

Home Depot started doing business in Canada with its acquisition of Aikenhead’s home improvement center and in Mexico through the acquisition of Total HOME. In 2006, they extended their reach to China by acquiring The Home Way. Today, Home Depot is the world’s largest home improvement retailer. They have more than 2,200 locations, and store inventory consists of up to 40,000 kinds of building materials, home improvement supplies, appliances and lawn and garden products. In addition, they offer 250,000 other products that can be special ordered.

Home Depot stores sell a wide assortment of building materials, home improvement and garden products. Twenty-six EXPO Design Center stores sell products and services primarily for design and renovation projects. Additionally, the company operates four Villager’s Hardware test stores, which offer products for home enhancement