ipl-logo

The Home Depot Essay

750 Words3 Pages
bulb-icon

Recommended: Home depot and its operation strategy

Register to read the introduction…

Charismatic Transformation is used to accomplish radical change in a short time frame, with support from the organization’s culture (Brown, 2011). Going back to the Great Recession, The Home Depot observed that their competitor, Lowe’s was still marketing via television ads that encourage consumers to focus on expensive projects such as, roofing, flooring, fences, etc. These types of projects had become unaffordable to consumers during the Great Recession. The Home Depot took a different approach towards marketing to the consumers. The company put its focus on painting or re-painting rooms. The company also noticed that their customer-base was predominantly male (contractors) and knew that they needed to appeal to the female audience. To capture this audience, The Home Depot, marketed a new combination primer-paint product and used women in the commercials to do the painting. Although this was not a long term change, it set the stage for the current success of The Home …show more content…

They made changes they were not so noticeable but made a big difference. They sealed their floors to give them a glossier look and keep down the dust. They made aisles broader and reduced the usual clutter at the front entries. This was more appealing to female consumers. The Home Depot did their research and found that Lowe’s already knew this and they moved to make these changes as well. In addition to this change, the company brought in Martha Stewart products and increased the number of orange-aproned people on the selling floor. In the Nardelli reign, this was a rarity. Now employees follow customers around the store to offer their help. This change appealed to the customer as well as the employees because both felt that they were appreciated. The company displayed that it was in touch with its culture and exhibited the core characteristic: Sensitivity to the needs of customers and employees. Sensitivity to the needs of customers and employees is the degree of responsiveness to changing needs (Brown, …show more content…

The Nardelli reign did focus on implementing technology, but only to increase self-service in the stores. This change only decreased the number of employees that were available and on the floor to assist consumers. Technology is still a key area of change at The Home Depot, only now the store uses technology to be more transparent in its pricing. The Home Depot has partnered with competitive price intelligence vendor BlackLocus to continue its innovative trail by developing an application that would allow the company to compare its prices with its competitors. This has allowed The Home Depot to keep its promise to provide low prices. The Home Depot made use of the Incremental Change Strategy of Forced Evolution to make these changes. Forced Evolution is used to make minor adjustments over longer periods but without the support of the organization’s culture (Brown, 2011). Although the company is working to improve the digital customer experience, they can for certain say that what they are doing currently is much better than what they were doing years

Show More
Related
1283 Words | 6 Pages

P3 Customers are the primary priority to all businesses which are making a lot of profit and their aim is to increase making profit, as without them, businesses such as McDonalds, would not be able to make any profit from their services. This is the reason that clients are essentially important in the process of associations interacting with them. McDonald 's guarantees that they keep track of the customers satisfaction as they are making sure that they provide a good customer service to their clients, as it can possibly promt customers into purchasing more products. By doing so, both McDonald 's and their customers are going to be satisfied and happy as the clients are the ones financing into the business and the clients themselves are on the other side, the receiving end, of good quality products. Never the less, if McDonald 's don 't monitor the customer 's satisfaction, the will probably be passing up a great opportunity to built on what their customers ' feedback was

Read More
1214 Words | 5 Pages

However with few exceptions, The Home Depot outperforms Lowe’s considerably. Lowe’s did outperform The Home Depot in revenue growth this most recent quarter, but this is just a snapshot when in reality both The Home Depot and Lowe’s have been experiencing very similar growth for years. Next is Earnings/Share, The Home Depot is earns over two times more than Lowe’s for one dollar of share price. Key differences can be found in profit margins, debt vs equity, and return on equity. The Home Depot has a considerably higher profit margin when compared to the margin of Lowe’s, and is much better at turning invested capital into equity.

Read More
738 Words | 3 Pages

Today home improvement is one of the highest areas that people want to spend money on. While the branding of Lowes pulls you in the rest of the business is successful enough to pull you in. Once any business is able to use its branding than management takes over. Lowes knows what’s it home improvers want and that’s

Read More
695 Words | 3 Pages

Home Depot and Lowe’s are two of the largest competitors in the home improvement market. When comparing the two, they both operate under very similar business models targeting the DIY and professional markets, but there are differences in their strategies which provides them both success within this industry. One specific area is in market saturation which Home Depot is ahead of Lowe’s. Home Depot has moved into the global market with stores in the U.S. Puerto Rico, the U.S. Virgin Islands, Guam, Canada, Mexico and China, many of which Lowe’s have not infiltrated. Other areas where the two companies differ are in customer options and store layouts.

Read More
1153 Words | 5 Pages

Their philosophy is “whatever-it takes” and delegates the frontline managers to lead “it is your business, your division, your market, your stores, your aisle and your customers (Home Depot 2009).” Finally , transformational leaders by definition seek to transform. Sometime when a organization does not transform it’s, employees become unhappy and leaders will

Read More
1540 Words | 7 Pages

The Cleaner of Your Dreams ad captures the attention of several different audiences. It’s target audience and intended audience differ. Because the major of people who purchase Mr. Clean products are women, this ad was from the view point of their target audience. The handsome “Mr. Clean was a big hit with women aged 35 to 54, with women responsible for 72% of

Read More
1222 Words | 5 Pages

As people create more efficient systems such as the department store, the older, more traditional systems are phased

Read More
717 Words | 3 Pages

Bass & Riggio (2005, pp. 4-8) explains that transformational leaders inspire their followers to exceed their own expectations and perceived capabilities and is comprised of the four components of idealized influence, inspirational motivation, intellectual stimulation and individualised consideration. DuBrin (2016, p.163) suggest that leaders in a time of crisis need to

Read More
729 Words | 3 Pages

Therefore, we have positioned and balanced our tenants in such a way that it’s hard for online firms to replace them. For instance, we have a shopping center that has Starbucks and restaurant that are surrounding the bigger retailers such as Ross and Office Max. Therefore, we draw customers to our shopping centers where all their needs can be met which is an advantage we have over online

Read More
1747 Words | 7 Pages

More women were employed and along with this advertising directed at women became more

Read More
1372 Words | 6 Pages

The teams processing the information for the customers for the service provided were contacted by the customers to assist them in making payments. Knowledge The knowledge about the buying criteria of the consumer and that there was greater opportunity for the differentiation strategy implemented based on the quality and the services offered for customers. Mike was also able to establish the fact that his relationship was not too smooth with the managers of the

Read More
1225 Words | 5 Pages

Segment 1 – Wal-Mart’s Revolutionary Power 1. How much was Wal-Mart’s sales figure quoted in the beginning of the segment? Wal-Mart recorded $256 Billion in sales and is the first company in the world to record such a figure on sales. 2. How many Americans stream into Wal-Mart on a weekly basis?

Read More
1009 Words | 5 Pages

4.4 Pricing Strategy For a number of reasons, price is one of the most important aspects of an effective marketing strategy (Gerstein & Friedman, 2015). First, price is the only marketing variable that generates revenue. Second, buyers see price as an attribute of value (Tanner & Raymond, n.d.). Consequently, an organization must carefully assess its internal and external environment to choose the most effective pricing objective, which—in turn—will drive a product’s initial pricing strategy.

Read More
964 Words | 4 Pages

Disruptive Innovation Xiaomi is often mentioned in the context of disruptive innovation. But does Xiaomi qualify? Figure 2.0 (Christensen ) https://www.interaction-design.org/literature/book/the-encyclopedia-of-human-computer-interaction-2nd-ed/disruptive-innovation The theory of disruptive innovation was introduced by Clayton Christensen, of Harvard Business School, in his book “The Innovator’s Dilemma” (1997).

Read More
1014 Words | 5 Pages

Superior quality and innovation are important to achieving superior customer responsiveness. The ability to satisfy the needs of your customers will allow for your company to stay ahead of your rivals. Customers will be more likely to choose a company if they feel like their voice or opinion is being heard. Another part of this building block is the customer response time. Customers want their products quickly, so ability to deliver the product or service at a quicker rate is important.

Read More

More about The Home Depot Essay

Related Topics

Open Document