Home Depot Situation Analysis Paper

The store Home Depot is the world’s largest home improvement retail store, “founded in 1978 by Bernie Marcus and Arthur Blank, and they opened their first two Home Depot stores in June 22, 1979 in Atlanta Georgia”. The stores were both “60,000 square feet, which stocked about 25,000 products which was much more than any other hardware store at that time”. Today “Home Depot has more than 2,200 stores in the U.S., Canada, and Mexico”, ninety distribution facilities, three online contact centers, and “105,000 square feet of indoor retail space that offer more than one million products” (The Home Depot, 2017). Home Depot’s main source of revenue is brick and mortar stores, it has branched out to interconnected business and online sales. Home Depot

Situation analysis is a “collection of methods that managers use to analyze a company’s internal and external environment to understand the company’s capabilities, customers, and business environment” (Wikipedia, 2018). Home Depot has in-stores sales, and now they are also using interconnected sales with the emergence of online purchasing. Home Depot gives their customers the option to purchase items from their brick and mortar stores online and can be picked up the same day at the store. The customer can pick up the purchased items or have it delivered to their home. Customers can receive their products faster with the distribution centers that are local and in specific areas. Home Depot introduced their first workshop in 1980 called “do it yourself”, which was a great home improvement industry. Customers can take the workshop and learn how to do different projects, and they can purchase the items for their own project at home. This was a great target market segment for Home Depot to come up with “do it yourself”. Home Depot’s other target audience are the young children who can attend workshops and built fun things. Home Depot’s key to success is treating their people well and with good care by, recognizing and rewarding them for their good performance, and encouraging them to speak out and take risks.
Marketing objectives are “goals set by a business when promoting its products

The Home Depot stores are the main places for their sales. Home Depot’s distributing strategy for their products involves the following, “warehouse-style stores, online store, and mobile apps”. Most of the sales transactions occur in the warehouse-style store. Online store is where the customer’s place an order for delivery or pick up at the store. The customers can use the mobile apps to locate a store, and to place an order online. Home Depot uses many tactics for their marketing communication strategy to advertise or promote their service, business, and products. These tactics are, “advertising (TV commercials), personal selling (store personnel) sales promotion, public relations, and direct selling (contractors)”. These tactics are used to engage the target