November 28, 2004
MGT 230 Exam One
1. Which of the four types of grand strategies do you think Home Depot is currently pursuing?
Growth Strategies used by the Home Depot
Expanding their existing EXPO Design Center Concept from 15 to 26 stores
Anticipating continued strong expansions in the future
Planning on doubling the sales over the next few years
Increasing sales in existing stores
Focusing on the quality of new stores opened
Improving quality of existing stores
Increasing Share Holder Value
implementing E-commerce (increase of sales and services)
With the growth, strategy Home Depot increases the level of the organizations operations through direct expansion, and quality improvement,
Home Depot uses the Differentiation Strategies, seeking competitive advantage in a broad range of industry segments, with operating EXPO Design Centers, the Apex Supply Company, Georgia Lightning, Maintenance Warehouse, and National Blinds. Also with offering the most recognizable brands in home improvement, quality in products and extraordinary service, Home Depot seeks to be unique in its industry.
Home Depot seeks to be a low--cost producer in its industry, with using resources to attain preferential access to raw materials (example, Wood). Home Depot seeks to provide high quality products at low prices.
Home Depots strengths and weakness:
To find weakness in a company's strategy, one would have to perform research, and compare findings.
For Example: Lowe's is one of the world's second largest home improvement retailers.
With adapting to changes in economy and technology, like E-Commerce and Tele-Communication, Lowe's has found that more consumers work from homes, which opened up an opportunity to expand their product line.
Lowe's offers consumers Home Office Products, like computer furniture, and uses this opportunity to suggest to the consumers a need for appropriate lightening. This is a smart...