Case study on Home Depot.

Essay by nomoreschoolUniversity, Bachelor's November 2003

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Executive Summary

Home Depot's company stated vision is described in the case as "to be one of the most successful retailers in the next millennium" which is further defined by Home Depot's management as "the most successful retailers... will be those, among other things, can effectively profitability extend their reach to global markets". Management at Home Depot also states that they plan to take the existing success in areas where they have a base business and use this base to expand into other markets.

I believe that Home Depot has done an excellent job at reaching its goals in the past ten years. They have been able to expand their market by aggressively opening several store locations and using a clustering strategy. In doing this they have become a market leader and they have also been able to keep their SG&A expenses down by eliminating redundant expenses by spreading them out between stores close in proximity to each other.

Home Depot is facing a few problems in order to continue reaching its stated goal(s) of becoming a global leader and expanding their existing market. There are a few established business that are in direct competition with Home Depot such as Lowe's, their number one competitor, and other companies such as Eagle Hardware & Garden of Seattle, who has been preparing for the intense competition that Home Depot will bring them for several years. They also face the problem with trying to expand their base in the Professional Business Segment of which they only hold about 4% of this market. Their competitors in this area are smaller businesses that have focusing on this market for some time.

In order to achieve their goals, Home Depot will have to find ways to compete with these companies while increasing their profit...