Home Depot Case Essay

4900 words - 20 pages

IntroductionThis paper has as a main goal to analyze the financial and managerial situation in which The Home Depot® is in at the current period. In order for this to take place, a full company and industry analysis must take place analyzing the following:Brief company overviewIndustry analysisFull S.W.O.T. analysis (Strengths, Weaknesses, Opportunities, Threats)Strategic factors of The Home DepotIf any core competencies exist, which are they?If any distinctive competencies exist, which are they?Stock evaluationReasons for growth of the industryCompetitive strategies followed by The Home DepotCorporate strategy followed by The Home DepotCorporate structureSignificance of strategic managers at this defined periodFinancial analysisCompany future outlookAfter taking and analyzing the above, a good picture of the strategical and financial position of The Home Depot will be created. This will lead the reader into a possible conclusion about the company and where it is facing at this current period. This is a good analysis to be read by someone who wishes to invest in stocks of the company or who is in general interested in the home improvement industry in which The Home Depot belongs.Note #1: Wherever Home Depot or HD is written, The Home Depot® is meant to be written, but for convenience purposes, is written in such format.Note #2: Many of the topics mentioned above will be covered under subtopics or relative topics also mentioned above.AnalysisBrief company overviewThe Home Depot, Inc. operates as a home improvement retailer in the United States, Canada, and Mexico. As the world's largest home improvement chain and second-largest retailer in the US after Wal-Mart, The Home Depot Stores offer an assortment of merchandise and services, including building materials, lumber and millwork, plumbing, electrical and kitchen, hardware and seasonal, paint, flooring and wall covering products, generators, and furnace and central air systems, as well as provides installation services, such as carpeting, flooring, cabinets, countertops, and water heaters. It serves Do-It-Yourself (DIY) customers; Do-It-For-Me (DIFM) customers; and professional customers, including remodelers, general contractors, repairmen, and tradesmen. The Home Depot also operates EXPO Design Center stores, which provides home decorating, remodeling, and installation services for middle-to upper-income DIFM customers. It offers interior design products for kitchens, baths, appliances, and flooring, as well as products for lighting, decorating, and storage and organization projects. In addition, the company provides credit purchase programs through third-party credit providers to professional, DIY, and DIFM customers. As of March 31, 2006, the company operated 2,054 stores in 50 states, the District of Columbia, Puerto Rico, U.S. Virgin Islands, 10 Canadian provinces, and Mexico. It also offers products through its Web site, www.homedepot.com. The Home Depot was founded by Bernie...

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