Free Essay Home Depot History and Business Case Analysis

1752 Words Oct 24th, 2008 8 Pages
Home Depot Business Case Analysis Letter to CEO

To: Robert L. Nardelli, - President and CEO of Home Depot, Inc.
Date: March, 04, 2004

First of all, I would like to thank you for giving me the honor to analyze your well organized and developed company. In this memo, I am going to discuss the strategic factors facing Home Depot, the strategies that the company has been following for the past years, and the distinctive competency Home Depot attain. Also, I am going to give my recommendations and opinion.

Some of the 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 the
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Even if, the company can afford to open all these stores, I do not think that the company should open many stores in one area.

Another strategy that your company is following is focusing on customer service and satisfaction or what is referred to "customer cultivation". Customer cultivation is the result of the provision of highly qualified and helpful employees, professional clinics and in-store clinics. When the company was faced with clogged aisles, endless checkout lines, and too few salespersons, it sought creative ways to improve customer service. Workers were added to the sales floor, shelf stocking and price tagging were shifted to nighttime, when the aisles were empty. Therefore, the availability of sales personnel to attend to customer needs was one clear objective of the Home Depot customer service strategy. It gave the DIY (Do It Yourself) customers the support and confidence that no home project was beyond their capabilities. Home Depot attitude of complete customer satisfaction has led the company to constantly seek ways to improve customer service. I think that this strategy is great and was worth all the expenses because the employees were free to sell during the day and focus more on the customers needs. It the good experience that brings the customer again and it's the word of mouth that brings other new customers, therefore, customer satisfaction is the most important strategy that any

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