| | Home Depot’s Business Strategy Home Depot ’s target market is individual homeowners/small contractors. Even though the traditional ideology is that cost leadership and product differentiation business strategies are mutually exclusive‚ Home Depot was successful at using a combination strategy. First‚ Home Depot optimized the cost leadership strategy by offering low and competitive prices to its customers by emphasizing higher sales volumes with lower margins‚ while instituting a high
Premium Financial ratios Cash flow Balance sheet
Executive Summary Submitted By: Usman Riaz Industry & Company Description Home Depot is a home improvement and construction company. It has its headquarters located in Georgia‚ Atlanta. Founded in 1978‚ Home Depot is the largest home improvement retailer in the United States with 2248 stores. This includes 1976 stores in US and the rest in Canada‚ Mexico‚ China‚ UK‚ Argentina and Chile. Home Depot serves three primary customer groups; do-it-yourself (D-I-Y)‚ do-it-for-me (D-I-F-M)
Premium Financial ratios Financial ratio
Home Depot‚ Inc. Home Depot‚ Inc. is the world’s largest home improvement retailer with sales last fiscal year topping $74 billion (Figure 1). Home depot sells a wide inventory of products ranging from building materials and home improvement products to lawn and garden products. In addition it provides various home improvement services including bathroom and kitchen installation. Its main consumer base consists of do-it-yourself consumers- those homeowners
Premium Customer service Home improvement Home
Home depot Case Study analysis 1) In the case of Home Depot‚ I feel the two values that seem more concurrent are Universalism and Benevolence. Through the very tough economic conditions Frank Blake remained very loyal to his staff‚ he took care of them during the market downfall by lowering sales and profit target that hourly employees were to meet to receive bonuses. This inspired workers to want to meet goals that were much more realistic‚ and had great rewards. This also generated a higher
Premium Customer service Customer Management
Team Project #1 Home Depot‚ Inc. in the New Millennium (HBS 9-101-117) Question 1. Assess Home Depot’s financial performance from 1986 to 1999. What explains the decline in performance in 2000? (See Question #1 Exhibit) The slowing economy in 2000 combined with Home Depot’s aggressive expansion efforts was the reason for Home Depot’s poor financial performance. Between June 1999 and May 2000‚ the FED had raised interest rates six times – or a total of 1.75 percentage points – in an effort
Premium Cash flow Cash flow statement Lowe's
of 2007 has not looked to well for Home Depot. The company has seen a 3% decline in revenues and that resulted in a 21% decrease in earning as compared to the last half of 2006. The prudence concept is the accounting concept that best describes the situation that Home Depot is currently facing. The prudence concept is an approach that does not report revenues until they have been realized or very certain to be realized (Edmonds‚ Tsay‚ & Olds‚ 2011). Home depot 3% decline in revenues in the first
Premium Generally Accepted Accounting Principles Balance sheet Revenue
Home Depot was founded in 1978 by Bernie Marcus and Arthur Blank in Atlanta‚ Georgia. With their store‚ Marcus and Blank revolutionized the do-it-yourself home improvement market in the United States. Home Depot began as a very basic store‚ operated in a large‚ no-frills warehouse. Home Depot carries over 35‚000 products‚ with national brand names along with the Home Depot brand. At the start‚ Home Depot was able to offer exceptional customer service with knowledgeable employees who could guide
Premium The Home Depot Management
project paper 03-14/14 The Home depot financial report Table of contents Company introduction..............2 Executive summary...................2 Company financial position.......3 Questions from assignments.......3-4 Graph with weekly analysis..........6 Weekly analysis of the change in the price of your stock...7 A weekly analysis of the change in the S&P 500....7 Major competitors....7
Premium Stock Revenue Home improvement
The Home Depot is the largest home improvement retailer in the Unites states with 2252 stores across the globe and the fourth largest retailer. Home Depot is a Fortune 500 company currently ranked number 35.The home depot was founded in 1978 by Bernie Marcus‚ Arthur Blank and Pat Farrah.Today‚ Home Depot‘s stores stock up to 35000 different kinds of building materials and lawn and garden products. The chief executive officer (CEO) and chairman of Home Depot is Frank Blake .Headquarter of Home Depot
Premium Balance sheet Generally Accepted Accounting Principles Asset
1. Evaluate Home Depot’s business strategy. Do you think it is a viable strategy in the long run? There are three aspects of strategy can be analyzed‚ mainly industry analysis‚ competitive analysis and corporate analysis. Since Home Depot carries only one business‚ corporate strategy analysis is not relevant for this question. 2.1 Industry Analysis The Home Depot is the leader in the industry‚ but the market share is almost negligible (0.9%). However‚ it obtained 62% growth in 1985 which
Premium Cash flow Economics Generally Accepted Accounting Principles