This paper analyzes Home Depot, Inc., the world leader in the home improvement retail industry.
Written in 2004; 2,870 words; 9 sources; MLA; $ 85.95
Paper Summary:
This paper explains that Home Depot has more than double the market share over its closest competitor, Lowe's, and more than eleven times the market share of the second largest competitor, Menard, Inc. The author points out that Home Depot's most important strengths are its size, variety, and range of products, but technology and customer service are its greatest internal weaknesses. The paper relates that the most significant opportunity for the long-term health of Home Depot is globalization, especially in China, where Obi, the second largest home improvement retailer in the world, plans to build 100 home improvement centers over the next ten years.
Table of Contents
Introduction
Company Background
Current Position
Market Share
Sales Growth
Return on Equity
ROE: Industry Leader Comparison
Profit Margin
Internal Strengths
Company Size
Products
Internal Weaknesses
Technology
Customer Service
External Opportunities
Women: A New Market
Globalization
External Threats
Domestic
Sales Growth as a Percentage: Home Depot v. Lowe's
Foreign
Competitive Advantages
Major Strategic Issues
From the Paper:
"The Home Depot was created in 1978 by Bernie Marcus and Arthur Blank and was formed as MB Associates. The first three stores opened in Atlanta and together posted sales of $7 million in 1979. The following year, Home Depot opened another store and posted sales of $22 million, an increase of 214% in one year. Home Depot continued to grow and in 1981, raised an extra $4.1 million when it went public. By 1985, Home Depot expanded to California and established a West Coast division. The next year, The Home Depot Inc. experienced its first $1 billion sales year and would never look back."
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