This website uses cookies to ensure you have the best experience. Learn more

Home Depot Inc. Case Analysis

2179 words - 9 pages

Home Depot was founded in 1978 in Atlanta, Georgia. The company went public in 1981. Their stocks were first traded in OTC (Over-The Counter) and were subsequently listed on the New York Stock Exchange in 1984. The Chain stores were warehouses that had huge amounts of building materials and home improvement products targeting customers that were individual home owners and small contractors.Their aim was to bring the warehouse retailing concept to the home center industry. This was considered to be the first successful company in Do-It-Yourself (DIY) segment and was famous for providing high quality products with low prices. Beside providing best quality products, the company's distinctive feature was that they provided knowledgeable customer services. All sales personnel were required to attend product knowledge training classes.The home improvement industry in which Home Depot is part of was a large, rapidly growing and competitive industry during the 1980's. With two wage earners in each household, families were willing to spend more money on home improvement projects and they rather do it themselves. Therefore the DIY segment grew rapidly. This growing industry attracted many competitors who had a dream of gaining a quick and easy profit.The success of the first three stores in 1979 encouraged the company to expand its business rapidly and reach the 50th store opening by the end of fiscal 1985. Due to this rapid expansion, the sales grew from $7 million in 1979 to $700 million in 1985. A remarkable part of this expansion plan in 1985 was to acquire nine stores from a competitor store chain which was in financial difficulty, Bowater Home Centers. However, while gaining market shares in the industry, the company's net earning declined. Furthermore, in 1985, the industry and retailing in general faced a difficult period in which the strongest and most capable companies survived from it but not without being affected. This downward situation also affected Home Depot stock prices.For the purpose of this report which is considered to be conducted in 1986, we will review the company's performance during the fiscal years 1983-1985.Business StrategyThe company's profitability is determined by its own strategic choices: industry choices, competitive positioning and corporate strategy.The home improvement industry was growing rapidly with sales of around $80 billion in 1985 and a strong industry growth was expected to continue, especially in the DIY segment. This promising market condition attracted a lot of new entrants. However, not all of them were as successful as Home Depot who was a pioneer in the DIY segment. Home Depot had the first mover advantages such as having exclusive agreement with suppliers due to large scale purchases. The volume of their purchases gave Home Depot the bargaining power in dealing with their suppliers.Home Depot's competitive strategies have been a key success factor for the company.The sources of competitive advantages...

Find Another Essay On Home Depot Inc. Case Analysis

Home Depot Finance Case Essay

1309 words - 5 pages II. Background Information The Home Depot Inc. was founded in 1978 and is the world’s largest home improvement retailer and the second largest retailer in the United States. The sales for the fiscal year 2000 were $45.7 billion, compared to $38.4 billion in fiscal 1999. As of January 2001, the company was operating 1,134 retail stores in forty-seven states, six Canadian provinces, Puerto Rico, Chile and Argentina. Home Depot stores sell a

case study: the Home Depot

10049 words - 40 pages to work on this assignment and would, in the third place, like to thank each other. The persons who worked on this assignment, for the effort and time that is put in the assignment, that brought us to this finished version.Content1.Preface2.Introduction3.Problem definition4.Summary5.Conclusion6. Chapter 1: External analysis of Home Depot Inc.7. Chapter 2: Internal analysis of Home Depot Inc.8. Chapter 3: Strategic forces.9. Chapter 4: Core

Case study on Home Depot

1137 words - 5 pages Executive SummaryHome Depot's company stated vision is described in the case as "to be one of the most successful retailers in the next millennium" which is further defined by Home Depot's management as "the most successful retailers... will be those, among other things, can effectively profitability extend their reach to global markets". Management at Home Depot also states that they plan to take the existing success in areas where they have a

Coach Inc. Case Analysis

7996 words - 32 pages Coach Inc. Case Analysis Six years after deciding to be an independent public company in late 2000, Coach Inc.’s net sales had grown at a compounded annual rate of 26 percent and the stock price had increased by 1,400 percent due to a strategy keyed to a concept called accessible luxury. Coach crafted the accessible luxury category in women’s handbags and leather accessories by differentiating themselves on price, but matching competitors

Amgen Inc Case Analysis

1773 words - 7 pages Amgen Inc Case Analysis The biotech firm Amgen Inc. gives much attention and time to the planning process. Because the outcomes for a company like Amgen are often very unsure and many employees are quite sceptical about the use of such a planning, the main issue can be described as follows: What is the added value of planning for a fast-growing company in an uncertain and dynamic environment? To address this issue, an analysis will

ABC, Inc. Case Study Analysis

518 words - 2 pages  ABC, Inc. Case Study Analysis •     Introduction A number of problems were made during the recent hiring process. This case Study is an attempt to identify and recommend ways to improve this process. From the information that has been obtained, I believe that a lack of employee experience and a lack of prior planning and follow up resulted in a failure to accomplish all the tasks necessary to hire the new employees in a

ABC, Inc. Case Study Analysis

1012 words - 4 pages ABC, Inc. Case Study Analysis Problem At the beginning of April, Carl Robbins was hired at ABC, INC. as a new recruiter. He successfully hired several employees, even though he was fairly new at his job. This was his first recruitment effort that turned out quite well. After this, the Operations Supervisor, Monica Carrolls, tasked Carl to recruit 15 new employees to begin working at ABC in July. So Carl scheduled an orientation to take

Custom Chip, Inc. Case Analysis

1656 words - 7 pages Custom Chip, Inc. Case Analysis Summary Custom Chip, Inc case describes the situation of a company where lack of coordination and cooperation among different departments is hindering them to achieve their common or ultimate goal as a single business entity. Applications engineering, product engineering and manufacturing are all inclined towards achieving their individual objectives and timelines rather than collaborating and synergizing their

Case Study Analysis ABC Inc

1113 words - 4 pages ABC Inc. was in need of a new campus recruiter, so in November of the previous year the company hired Mr. Carl Robins for that position. Having been on the job for merely six months, Mr. Robins was able to hire successfully 15 new prospective employees. These new hires are to be trained and work for Ms. Monica Carrolls, ABC's operations manager. Mr. Robins assured Ms. Carrolls that all paperwork, drug testing, physicals, orientation manuals and

Netflix Inc.: Strategic Profile and Case Analysis

1969 words - 8 pages Name: Nugra Irianta & Suleyman Annamammedov BUSI 4317 – Business Policy and Strategy Date: 5/2/2014 Case Study #: 3 I. Introduction: Strategic Profile and Case Analysis Purpose Netflix, Inc. is an American provider of on-demand Internet streaming founded by Reed hasting and Marc Randolph in 1997. Behind this multi billions dollar company, there is unique story of how, Hasting, one of Netflix founder came up with the Idea of Netflix. The idea

Blades, Inc. Case Study Analysis Paper

995 words - 4 pages Blades, Inc. Case Study Analysis PaperFactors of Foreign Exchange RatesExchange rates are the amount of one country's currency needed to purchase one unit of another currency and the foreign exchange market is the monetary nexus between countries that makes it possible for global trade to be accomplished more efficiently than barter. The foreign exchange market is where one countries' currency is exchanged for another because each nation uses

Similar Essays

The Home Depot, Inc. Forecast And Recommendations

2939 words - 12 pages economy is truly affecting Home Depot's revenue. However, evaluating market conditions and market trends will help provide the company with the needed data to help predict the future market of Home Depot and suggestions to consider in order to overcome the economic challenges of the upcoming months.The Home Depot, Inc., which was founded in 1978, is the world's largest home improvement store that operates 2,274 stores throughout North America

The Home Depot, Inc. Market Trends

1279 words - 5 pages the supply and demand of its customers and yet operate at maximum profitability.ReferencesColander, D. C. (2008). Economics (7th ed). New York: McGraw-Hill Irwin.Economagic. (2009). Most requested series. Retrieved April 6, 2009, from Economagic Web site: http://www.economagic.comThe Home Depot, Inc. (2009). Investor relations: News release. Retrieved April 6, 2009,from http://www.ir.homedepot.comNovy, D. (2009, January 26). Retail Roundup: Wasson Named Walgreens CEO, Home Depot Slashing 7,000 Jobs, More. Retrieved April 6, 2009, from BNET Web site: http://industry.bnet.comUniversity of Aberdeen. (2009). EDNET. Retrieved on April 8, 2009 from http://tutor2u.net

The Home Depot, Inc. Market Conditions

1665 words - 7 pages reorganize the company by reducing its staff. Therefore, a constant watch on leading indicators of the economy will truly provide a clear vision of what type of market conditions the company would possibly face and will contribute to solutions that will help Home Depot survive an unpleasant economy.ReferencesBureau of Economic Analysis. (2009) U.S. Department of Commerce, Retrieved March 31, 2009 from http://research.stlouisfed.orgColander, D. C

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