Home Depot Case Analysis

HomeDepot Case Analysis

HomeDepot Case Analysis


Themajor objective facing the management team of home depot andinterconnected retail is to integrate the communication aspect as amarketing channel that touches its shifting points on entrepreneurialspirit and growth rate as a result of managerial cracks that startshowing up. This is a strategic way of building the environment forthe sustained customer emotional connections if properly considered.


Competitionwithin the market primarily poses performance threats. The threatsare alongside the lack of product and services consumers that affectsthe market. Other elements are not limited to underdevelopment,which decreases sales, compelling people to work for long hours withlimited time to improve their homes, and even the lack of tools toimprove their homes (Alvarez, Ton &amp Johnson, 2012).


HomeDepot is the world’s largest home improvement and specialtyretailer, selling a broad merchandise assortment, across US, Canada,China and Mexico. Opportunity in the market has expanded, followingthe stability of economies and government structures that tend to befavorable, through supporting foreign investment. However, theinternal shifting of leadership as a strategy has seen thecentralization of goods and services alongside merchandizing(Alvarez, Ton &amp Johnson, 2012).

Homedepot is a corporate company, based on the fact sheet below.

Exhibit1:Incorporationfact sheet


29th June, 1978

First Store

22nd June, 1978


Atlanta Store Support Center, Atlanta, GA 30339


More than 300, 000

Theglobal market is a cross economic endeavor, meant to promote tradethrough exchange of goods and services, which aim at satisfying thethree legged stool, under corporate social responsibility (Alvarez,Ton &amp Johnson, 2012). In this case, the global market strategybasically gets to be the determination of the business’ long termgoals and its objectives. It integrates either of multinationalenterprise, foreign portfolio investment or even foreign directinvestment, with effective application of strategic planning toolsbased on corporate level, business level, functional level or evenoperating level (Alvarez, Ton &amp Johnson, 2012).

Exhibit2:Integralglobal marketing strategy

Global Market Strategy

Long term Goals


Integration process

  • Corporate

  • Market Success

  • Multinational

  • Business/Operation

  • Market satisfaction of three legged stool

  • Foreign portfolio

Asa case study that seeks to effectively elaborate on the aspect ofcompeting global market, home depot and interconnected retaileffectively elaborates on this, as a business strategy determinant.This has been through facilitating efforts meant to improveoperations through improving labor productivity, metrics, humanresources and even performance.

Thesituation of home depot market shares, at some point got dividedthis led to home industry fragmentation. The fragmentation in thiscase had specific causal factors, however, to an extent poorstrategies, poor tradeoffs and un-effective choices in businessestablishment got to be behind the fragmentation. However, when Blaketook the reins, he set a vision that saw the reinvestment in hardtimes through operations, initiation of 60/40, re-establishment inmerchandizing and even the supply chain.

StrategiesHome Depot Pursued To Expand Into the Market

Theapplication of the international strategy in market entry got toensure the expansion of Home Depot. This strategy looked into theeconomic and government structures, which were stable and tended tosupport the foreign investment process (Alvarez, Ton &amp Johnson,2012). However, changes got to be made on the home improvementlandscape. This was through improving the industry, growing of onlineretail, and application of new technologies and adoption of smallerformats, as shown in the chart below.

Exhibit3:Onlinetrends in retailing revenue

Insome cases the strategy later on failed, in relation to the competingglobal market, deducting a lot of objectives, which desired to beaddressed, in seeking market efficiency. The need to understand theunderlying principles for global market competence, with respect tomultinational enterprise, foreign portfolio investment, foreigndirect investment and strategic planning was crucial (Alvarez, Ton &ampJohnson, 2012).

Hiringof newly skilled human resources got to be the backbone for a perfectglobal market situation. The understanding of sources and approachesbehind competitive advantage, through analyzing of strengths,weaknesses, opportunities and threats prevailing in the global marketwere essential. Further, new entrants’ understanding throughsources, power of bargaining and substitute products in the market,object got to be understood based on the global market (Alvarez, Ton&amp Johnson, 2012). This should be part of the understandingapproaches to consider in respect to prevailing imitations andimpending substitutions.

ThreatsHome Depot and Interconnected Retail Faces in Performance

Competitionwithin Market affected Home Depot performance. To understand theentire concept of Global Market Strategy within the Market,Competitoranalysis, through addressing a number of internal and externalbusiness factors, with no limit to expectation choice,helps effectively in achieving of business goals in the Globalmarket. Lack of product and services consumers to repair the housesdue to the low ‘maestro’ hiring cost a case of Chile affectedHome Depot performance. Other elements could not be limited toUnderdevelopment, which could compel people to work for long hourswith limited time to improve their homes, and even the lack of toolsto improve their homes.

HowHome Depot Got Into The Mess And What Could Be Done?

TheHome Depot faced failure due to a number of strategic reasons. Thefailure to offer general merchandise on decoration in the marketinfluenced its failure. This failure could alongside be due to homedepot not having an appealing set up, as it had cemented floor, highand poorly lit ceiling, which customers did not get attracted to,especially women (Alvarez, Ton &amp Johnson, 2012).

Asa way to address these home depot strategic failures the making ofthe stores more attractive, enjoyable and comfortable would havemitigated the failures. This could also include the widening ofproduct assortment in the market. Furtherunderstanding the global marketing as an undeniably great concept, isimportant. The leveraging idea in marketing strategy across marketsseems to be beneficial, as it saved resources and efforts, for highconsistency, degree amid all activities in the in-market branding(Alvarez,Ton &amp Johnson, 2012).

Theneed for a balanced and successful global marketing approach, couldclarifythe global and locally managed strategies. Globalmarketing typically sets the structure and parameters for localmarket operations, while giving in-market teams the control freedomto local levers.Theessential need to consider political factors was to be inevitable. Inthe global market, as a strategy when campaigns approach, the need tolook into key elements for business success was significant (Alvarez,Ton &amp Johnson, 2012). Appointingof global marketing campaign managers could strategize businesssuccess.

Earlydeveloping and socializing of global marketing plans, throughproactiveapproach was to be essential towards giving the business time toproperly adjust and revise existing plans, in the occurrence of aproblem. It also opens room for information sharing among thebusiness community.&nbsp

Asa future and a road ahead for home depot and interconnected retail,understanding of customers is critical. This gets to consider thecustomer as being the desired destination in business, as a way tocategorically shift in building the future.


Inconclusion, understanding the basic concepts of economics transactioncost gets to be an objective through bounded rationality, opportunismand information asymmetry for better global market strategizing inthe desire for entry (Alvarez, Ton &amp Johnson, 2012). This shedscapacity to those venturing into the global market, as a way ofreducing economic depression within investors. Further, the formationof alliances is a critical way to strengthen the market power.

Identificationof the impacts of e-commerce, on international business, gets to bethe objective of understanding the global market strategy (Alvarez,Ton &amp Johnson, 2012). Through e-commerce, marketing gets to bepromoted. Not being limited to, corporate social responsibility, as astrategy to promote the global market entry and success, there is theneed to integrate it in the global market strategies, which are inline with the international business. This has to do with therelationships that exist in the market environment and the close ofthe business to local parties.

Exhibit4:CorporateSocial Responsibility Core Values Percentage

Inthis case the fragmentation of the Home Depot resulted fromun-agreeable relationship with its product, supplier and greatly, thefailure of being close to local parties that comprise productpromoters. However, it should not be mandatory for businesses topartake the aspect of responsibility. Rather, this should be adeliberate effort, to impact back to society, which tends to be thebackbone of the entire market.


Alvarez,J. B., Ton, Z., &amp Johnson, R. C. (2012). Home Depot andInterconnected Retail. Harvard Business School Marketing Unit Case,(512-036).