- Author Amelia Watson
- Published June 12, 2021
- Word count 637
The success of Home Depot can be attributed to strategic management as well as its best practices. According to Barney and Hesterly, a good strategy is one applied and followed giving a firm a competitive advantage over its rivals by creating more economic value compared to its competitors. Home Depot’s strategy involves merchandising which entails promoting the sale of its products by presenting them in its 2,274 stores and retail outlets across the US, Mexico, Canada, Virgin Islands, Guam, China, and Puerto Rico.
Home Depot uses a three-legged stool model for its strategic framework. The strategy focuses on value creation by connecting the business with the customers. The strategy is based on customer experience, product authority, and capital allocation all focused on efficiency and competence. As a result, Home Depot aims at offering a flawless and smooth experience whether online, at outlets, with home deliveries as well as construction sites. Second, the company aims at upholding its product authority by continuously striving to balance innovation, art, and science to offer the best value. Lastly, Home Depot’s capital allocation is driven by efficiency and competence. The overall strategy entails outstanding customer service, low pricing, and a wide range of products and it is these three factors that have kept Home Depot ahead of its competitors.
Home Depots’ success can also be attributed to its excellent leadership as well as its generic strategy coupled with intensive growth strategies. Apart from offering high-quality service in addition to offering a wide selection of products, the majority of the employees at the Home Depot’s warehouses and stores are experts in their different fields particularly carpentry and plumbing and therefore, they are able to offer expert advice to clients. When it comes to cost leadership in Home Depot’s generic strategy, the company’s financial goal is to minimize cost which is achieved by developing personal and exclusive relationships with its suppliers which helps in minimizing cost.
Despite its success, Home Depot is facing a major threat from other stakeholders. Despite the fact that the threat is medium, it is gradually increasing especially due to the future government regulations on environmental issues. Though the company has always tried to be ‘green’ by helping preserve natural resources and offering programs that allow for the recycling of older items, in recent years it has been connected with cases related to pollution. In 2013, the company was involved in a scandal where a number of its stores sold non-compliant paint despite warnings from the air regulators. More recently, the company was involved in a controversy over the construction of Patagonia Dam’in Chile which would involve clearing trees to give way for the power lines. However, environmentalists argue that the dam could have detrimental to the environment. As a result of the growing consumer demands for conservation, Home Depot may find itself in a tight sport with its clients.
In conclusion, Home Depot's success can be attributed to several factors. Home Depot emphasizes on inimitable customer service which is the reason as to why the company mostly employs individuals with field expertise as well as well-trained employees in order to offer the best advice and customer experience. The company also believes in social responsibility both for itself as well as the suppliers. The company also uses a centralized management system that consolidates the executive for easier and more informed decision-making. Last but not least, the company maintains cost leadership by minimizing the costs wherever possible, hence more revenue which culminates in its success.
Amelia Watson is an editor. She started her career writing blogposts. Now Amelia works at https://dissertationmasters.com/buy-discussion-board-post.html This company has years of experience writing original papers. They have the people to produce what you need no matter what kind of assignment you need. She started her career writing blogposts.
Amelia Watson is an editor. She started her career writing blogposts. Now Amelia works at https://dissertationmasters.com/buy-discussion-board-post.html This company has years of experience writing original papers. They have the people to produce what you need no matter what kind of assignment you need. She started her career writing blogposts.Article source: https://articlebiz.com
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