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Home Depot Strengths

896 Words4 Pages

The purpose of this paper is to analyze Home Depot. The company’s history, mission statement, organizational structure, executive compensation, and strategy implementation will be included. The mission statement will stand as the framework of the company, which will analyze what the company strives to accomplish. The analysis of the internal environments will be presented. The internal analysis will identify the organization’s strengths and weaknesses. Strengths and weaknesses focus on the company’s resources and capabilities. The analysis will close by identifying five significant problems within the company. Research sources include the Strategic Management textbook, The Wall Street Journal, Forbes, Home Depot website, and the Alabama …show more content…

They also noticed a rise in do it yourself (DIY) customers who completed projects and crafts at home on their own. The owners saw the need for excellent customer service and the rise of homeowner DIY projects as an advantage to the competition. Most retailers at that time carried small amounts of inventory and limited what was sold in their stores. However, Home Depot would build bigger stores that could house more inventory, giving customers more options. More options would lead to more DIY home improvement and retuning customers because they knew Home Depot would have the items they need to complete the project. They also provided their sales associates and staff with the knowledge and education to sell those items while educating the customer and giving them the confidence to take on the project themselves. For efficiency, Home Depot would hire plumbers, electricians, and construction workers part time for their expertise. They also held in store workshops on DIY projects for customers who were taught by the same …show more content…

That same year Home Depot operated 19 stores and reported $256 million in sales, a 118 percent increase from 1983. By 1986 they reached the billion dollar mark in revenue, and are now operating 60 stores. With the success of their growth Home Depot decided to invest and purchased nine Bowater warehouse stores for $38.4 million dollars. These stores also sold home improvement items. Bowater was located in Texas, Louisiana, and Alabama, but lacked the same standards and values as Home Depot, and were forced to close all the stores. During the early 1980’s Home Depot experienced their share of highs and lows. As a result, Marcus decided to open fewer stores each year in markets that were familiar with the Home Depot

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