HOME Depot Final milestone 3 principle of retailing snhu PDF

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Home Depot was developed by Bernie Marcus and Arthur Blank during a trip to a coffee shop in 1978. Having the desire to do this yourself, Marcus and Blank imagined a store which was able to assist in every level of a project with shoppers with a variety of products. A year later, they were able to ...

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History Home Depot was developed by Bernie Marcus and Arthur Blank during a trip to a coffee shop in 1978. Having the desire to do this yourself, Marcus and Blank imagined a store which was able to assist in every level of a project with shoppers with a variety of products. A year later, they were able to open their first two stores in Atlanta, Georgia with the help of Ken Lagone as an investment banker and Pat Farrah to help with their merchandise. The first couple of stores were about 60,000 sq feet with around 25,000 products in store, today the stores are roughly 105,000 sq feet on average plus an online platform. Home Depot has 2,298 stores in North America which includes the United States, Mexico, and Canada with each and every store holding the same goals. (The Home Is Where Our Story Begins 2021) Of course, the company has competitors, including Lowes and Menards that are also chain superstores for home improvement's needs. But their main competitor is Lowes. In 2020, the company was able to have revenue of $132.1 billion and employee over 500,000 people. Home Depot has 35,000 building, installation, restoration, refurbishing and decoration products for all the seasons in their stores. Their online platform has more than one million products that can be used for more projects, and customers can continue shopping after get off work. (The Home is Where Our Story Begins 2021) There is an informative calendar on the advancement of the Home Depot brand. April of 1978, Marcus and Blank were terminated from their positions in the Handy Dan Home Improvement. June of that year, they officially launched their Home Depot idea. The stock of the company released in September 1981. Opening the 100th store in Monrovia CA in 1986, the company was quickly became the largest home improvement retailer in the U.S. the following

year. From 1993 - 1997, they added volunteer progrrams, created the Canadian divison, opened the first tool rental, and added kids workshops, The company created an online platform to evaluate the market in the Las Vegas area in 2000. They were the first home retailer that used the self-checkouts. "To create a company that would keep alive the values that were important to us." is the vision statement for Home Depot ( The home depot mission, vision and Values 2021) Values such as respect for others, good service and giving back and so on. The vision statement supports the company to keep striving to become the only place where anyone decides to use it for home maintenance and also to be cared for and handled with dignity and respect. Home Depot’s mission statement is “to provide the highest level of service, the broadest selection of products and the most competitive prices. (Ferguson 2017)” Home Depot's mission describes three specific elements, which are a high-quality service, wide range of goods with competitive pricing. SWOT Analysis Home Depot has many great things about them. Some of their strengths are the biggest home improvement store, quality, competitive prices, and online services. Currently they have 2,298 stores throughout North America(About). Home Depot is able to have quality employees to be able to assist customers, also they have the ability to have workshops to help customers through projects (About). Being able to have this type of service is what shoppers like to see. Home Depot is able to have quality employees to be able to assist customers, also they have the ability to have workshops to help customers through projects (About). They hold competitive prices. Their prices are reasonable compared to other improvement stores for brands. Finally, their

online services. They are able to service way more customers, whatever time of day, with their online platform. While they hold many strengths, they also have weaknesses. Their main weakness is locations. All of their stores are located in North America. Even though they have stores in the United States, Canada and Mexico, they are losing profits by not adding worldwide. Hope Depot has plenty of opportunities available to them. Expanding to other parts of the world they have an opportunity to add other store front locations to other parts of the world instead of only North American, which in return will increase profits along with more of a supply chain for the company. Continue to expand their online platform by adding more products. By adding a partnership with a décor company, they are able to offer more to their customers. They will be able to have the building/repairs to home décor to add finishing touches to customers projects. ( Forbes) Home Depot possess many threats such as competitors and the price of supplies. Competitors store such as Lowe’s and Menards make Home Depot continuously needing to find ways to grab customers attention. Having other big home improvement stores around is the real threat to Home Depot and their profits as a company. Another threat is the price of supplies. The prices of supplies can cut in the profits they make. For example, if prices of lumber rises then profits fall. (Garcia) With branches throughout the United States, Mexico and Canada, Home Depot is the largest improvement company with a total of approximately 400,000 employees and 2298 stores. Home Depot is related to online that supplies over 35,000 items and over 1 million items in store, including having multiple selections of brands available to their customers. Items such as household appliances kitchen and bathroom, construction equipment, floors, gardening

equipment etc are sold amongst Home Depot. Home Depots annual revenue of $132.1 billion for the end of 2020, which is a steady increase from the last few years ( About Us). Lower was in the industry long enough to provide a better brand collection than Home Depot. They are mostly located with a total of 2,200 stores split between the U.S. and Canada. Lowe did have locations in Mexico, but they shut down because of decrease in sales due to their competition with Home Depot stores. Throughout the kitchen and bathroom design and construction supplies, the floors, Lowes performed great. The aim is that Home Depot continues to attract more of your professionals such as carpenters and electricians, as Lowe's aims for a broader audience of your normal people. Home Depot looks as nothing more than a warehouse setting whenever it comes to market and products to setting displays, and Lowe's shops look like a standard hardware store. The signs as well as the floorboards are understandable and legible, with larger numbers. Lowes has a week worth of profits volume of about 18 million and an average of $89.6 billion in 2020 (Owlet) . Lowes engage in their neighborhoods, just as well as Home Depot being involved with their neighborhoods. Lowes also employs a 4-principle strategy to implement its mission statement and create a stable base to success, including purchasing and selling effectiveness, supplier improvement, productivity improvements and consumer loyalty. While compared against Home Depot, Lowes has some drawbacks. In store and also online, Lowes doesn't quite carry as much products as Home Depot does. Lowe's has access about 7,000 regional and international manufacturers that many not they monitor the quality of products. Although Lowe's has been in business longer than Home Depot, the confirmation with stores shutting its doors in Mexico, shows they may have difficulty with success outside the US.

Lowe's and Home Depot are quite identical regarding their products that is sold to their customers. Even so, unlike Home Depot, Lowe has still been fighting with advancement to the growth of their business. Lowe's CEO discussedfrom its 2019 annual report on exactly how their performance would increase with both the introduction and reorganization of the principles as just a guide to improve. A closure of their Mexico store was not seen as a failure or even a burden but rather as a motivation to reconsider how they expect to improve as a stronger profitable company in their futures. Recommendation I suggest for Home Depot is to add more stores worldwide instead of focusing on the states, Mexico and Canada, which could add a benefit to the future of their business. Adding more stores worldwide would add more profits from customers and could potentially add yet more suppliers. By adding additional suppliers can help with steadier product. Another suggestion that may be concentrated on the manufacturers that the company is using where negative feedback comes from and getting a new manufacturer with positive feedback. It should help to alleviate the wrong thought in shopper minds. Growing retailers strives to provide high quality merchandise. Not everything offered throughout the company has bad reviews, but it is the company’s best interest to hold their best product they can offer to shoppers. Conclusion In conclusion, I do believe that Home Depot is on the right path as a business. Home Depot has shown that they have success with their e-commerce profile and has the continued ability to grow internationally. Home Depot has not been in business as long as Lowe's, but they are very well recognized with such a large product line. One thing that can threaten Home Depot’s future

is the housing markets such as how the pandemic hit hard for all companies. By Home Depot being an improvement chain having lower borrowing rates for mortgages, homeowners are able to put money into their homes vs if rates are high, they are less likely to do this. Lastly, I feel that Homes Depot will sustain as well as expand in their current market because in this business customers always need products for home improvement, and they carry so many different products with a good value than others. Reference About us. (n.d.). from https://corporate.homedepot.com/about

Ellison, M., & Officer, P. (2021, April 01). Our strategy. Retrieved April 05, 2021, from https://corporate.lowes.com/who-we-are/our-strategy Garcia, T. (2019, August 21).

Garcia, T. (2019, August 21). Home depot will feel the impact of lumber price deflation and Lowe's improvement https://www.marketwatch.com/story/home-depot-will-feel-the-impact-oflumber-price-deflation-and-lowes-improvement-2019-08-20

Home depot will feel the impact of lumber price deflation and Lowe's improvement., from https://www.marketwatch.com/story/home-depot-will-feel-the-impact-of-lumber-price-deflationand-lowes-improvement-2019-08-20 The Home Depot competitors. (n.d.). Retrieved from https://craft.co/the-home-depot/competitors

Ferguson, E. (2017, February 03). Home Depot's vision statement & mission statement. http://panmore.com/home-depot-vision-statement-mission-statement

The home DEPOT Mission, vision & values. (2021, March 15). Retrieved from https://www.comparably.com/companies/the-home-depot/mission

Shoulberg, W. (2019, July 17). The 5 things Home Depot needs to do as it MARKS 40 years in business., from https://www.forbes.com/sites/warrenshoulberg/2019/07/17/the-five-things-homedepot-needs-to-do-as-it-marks-40-years-in-business/?sh=5091d79760d9...