April 18 2012
Business Analysis of Home Depot Inc.
The Home Depot was founded in 1978 by Bernie Marcus and Arthur Blank. Along with investment banker Ken Langone and merchandising guru Pat Farrah, the founders’ vision of one-stop shopping for the do-it-yourselfer came to fruition when they opened the first two Home Depot stores on June 22, 1979, in Atlanta, Georgia (“The Home Depot”, 2011). From the start, associates were able to offer the best customer service in the industry, guiding customers through projects such as laying tile, changing a fill valve or handling a power tool. Not only did store associates undergo rigorous product knowledge training, but they also began offering clinics so customers could learn how to do it themselves. The Home Depot revolutionized the home improvement industry by bringing the know-how and the tools to the consumer and by saving them money” (“The Home Depot”, 2011). The Home Depot is the fastest growing retailer in U.S. history. The 1980s and 1990s showed tremendous growth for the company, with 1989 marking the celebration of its 100th store opening. “The company arrived in Canada with the acquisition of Aikenhead’s home improvement centers in 1994, and in Mexico in 2001 through the acquisition of Total HOME. In 2006, the company extended its reach to China by acquiring The Home Way, a 12 store chain”. (“The Home Depot” 2011) From the beginning, The Home Depot developed strategic product alliances directly with manufacturers to deliver the most exclusive assortments to customers. “Through a combination of national brands and proprietary products like Ryobi® tools, RIDGID® tools, BEHR® paint, LG® appliances, and Toro® and Cub Cadet® lawn equipment, the company sets the standard for innovative merchandise for the do-it-yourselfer and the professional contractor” (“The Home Depot”, 2011). The following will be an analysis of The Home Depot in its...