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Home Depot Aikenhead's Corporate Strategy

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The Home Depot has primarily used a Growth / Concentration / Horizontal strategy to achieve such unmatched growth. The firms center of attention is on expanding their products into multiple locations at the same point in their value chain, while at the same time increasing the range of goods and services offered to the current market. Under Corporate Strategy Home Depot made multiple acquisitions since its inception: 1994, the company acquired Canadian-based firm Aikenhead’s home improvement centersIn 2001, to mark its presence in Mexico the company bought Total Home. 2006, the company extended to China through the purchase of ‘The home Way,' a 12 store chain. Business Level Strategy: Integrated cost Leadership/ Differentiation Strategy.
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A stock price this low had some investors concerned that a hostile takeover of the retailer might become a possibility. The new CEO, Frank Blake, recognizing that the corporate culture would not sustain a profitable company, started to make changes within the organization after his hire in January of 2007. Nardelli had taken The Home Depot from 1,134 stores in 2000 to 2,000 stores in 2005, with a plan on opening another 400-500 additional stores from 2005 to 2010 (The Home Depot, 2005). Frank Blake recognized The Home Depot had become too stretched and needed to focus on rebuilding the customer service that once had made The Home Depot a strong contender among retail stores and the number one home improvement retailer. This caused Blake to stop the expansive store growth, close 15 underperforming stores, sell the newly acquired supply, and close the EXPO design centers.

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