1. Identify the 5 elements of strategy for Home Depot. 2. Do a SWOT analysis for Home Depot and provide recommendations for strategy based on the opportunities and strengths you have identified. Also,...

The Home Depot, Inc. Analysis
Five Elements of Strategy
Home Depot Areas
A large scale retail store, Home Depot, was founded from the scratch by two people who
got laid off from their earlier employment despite they had performed well and they are Bernard
Marcus and Arthur Blank. Home Depot was one of the largest Home decorator retail stores in
America. Its major revenue inflow was generated by Mergers and Acquisitions along with the
selling of its four main categories Remodeling and Building, Outdoor living, Home Décor’ and
other Hardware.
Customer segmentation of Home Depot was done on the basis of three factors keeping in
mind the concept of do-it-yourself. Those are Nonprofessionals who are interested in making
improvements in their homes and treat it as a hobby. And then they also changed their tag to buy
–it-yourself for professional people who find less time to shop. And they are the ones who would
like to pick things of their choice but want an assistance to install them. And the third segment
which Home Depot is catering to Plumbers, electricians, contractors, landscapers etc. They are
the ones who buy products in large quantities to serve their clients which are into larger projects.
Also they are planning to target Heavy Industry sector customers.
Staging
Arthur Blank was the CEO of the company and was replaced by Ex-employee of General
Electric, Robert Nardelli was appointed as a new CEO of the firm and had made many changes,
as he did not have any experience of retail Industry and he applied all the formulations of general
Electric that’s why his strategies use to be called “GE-ization of Home Depot”. He lay off many
permanent employees and replaced them by new part time employees, most of them were
students and they did not know much about products and was just into know how of selling
goods out of the door which was opposite of the general strategy of Hone Depot which the
founders have initiated that is decentralization and giving importance to internal customers first
and providing an experience to its customers and not just believing in Transactional relationship.
Differentiation
Home Depot was initially based on the concept of “do-it-yourself” interior and
improvement in your home just overnight. With the increasing number of players in the segment
it was very important to analyze the new product development and make it available to the right
person at the right time before your competitor provides the same. One key area in this industry
was seen that more than anything to offer, a sensitive approach while serving the customers will
decide an added advantage over to the competitors. It can be understood from the case that
initially Marcus wanted to introduce a warehouse where all the products would be available and
in a less time they can be reached to the customers. The attraction was to provide an immediate
service and at a very low price.
Vehicles
Along with such experience an idea of introducing knowledgeable sales people on the
floor to guide...