Home depot Mission statement
"The Home Depot is in the home improvement business and our goal is to provide the highest level of service, the broadest selection of products and the most competitive prices. We are a values-driven company and our eight core values include the following: * Excellent customer service
* Taking care of our people
* Giving back
* Doing the "right" thing
* Creating shareholder value
* Respect for all people
* Entrepreneurial spirit
* Building strong relationships ."
Home Depot faces a mature domestic market. The US is the largest market for the company and over the years Home Depot has expanded aggressively. Home Depot operated 1,976 stores in the US by the end of FY2010. During the year, the company opened only five stores and the capital expenditures decreased by $881 million in FY2010 compared to FY2009. Also, its competitor, Lowe’s operates another 1,710 stores. Between them these companies cover most of the markets in the US. Additionally, due to the economic situation, the companies have stalled new store expansions at aggressive pace. This scenario has limited growth opportunities and has intensified competition between Home Depot and Lowe’s; and the associated rivalry may increase pricing pressures. Declining opportunities of growth and limited international presence has constrained growth opportunities for Home Depot.
Housing market to remain sluggish in 2010 leading to low demand for building materials and big ticket items
The housing market in the US has been in the epicenter of the financial crisis and the downturn is expected to bottom out until 2011. In June 2009, Home Depot and several other companies claimed that the worst of the housing market fallout had already passed. However, the housing market has gotten steadily worse since then. In the first three months of 2010, foreclosure rates grew by the highest in 5 years, and increased 35% compared to the same...
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