Home Depot's Corporate Strategy Essay

Parnell (2014) defines corporate strategy as “the basic thrust of the firm, or the direction that managers would like to lead the firm”. For Home Depot, the corporate strategy is growth. Since its inception in Atlanta, Georgia in 1978, Home Depot has continuously endeavored to be the principal, most profitable supplier of home building supplies in the industry. Home Depot is currently the biggest player in the home improvement retail industry in the United States and their plan is to remain in that position, if possible (Smithson, 2016). Home Depot currently attempts to remain competitive in the market by building large warehouse type stores and placing them in strategic locations that will produce lucrative sales and profits margins, but acquisition of smaller companies is still their primary mode of achieving growth (Smithson, 2016). To maintain their market position, they will need to continue to grow and look for locations that they can successfully enter the market. The business level strategy is low cost-differentiation. Home Depot
They know their market well and they have become experts at getting the attention of those types of consumers. Home Depot uses the DIY spirit to makes sales. They often post project inspirations on their website, social media pages, or internet videos, which inspire consumers to come into the store to purchase the necessary supplies. On the subject of social media, they utilize Facebook and Twitter to connect with their customers. They post DIY videos to YouTube and Vine and they provide online communities where actual employees answer consumer’s questions and help on projects that consumers may be experiencing trouble with (How Home Depot, 2014). They also offer DIY books and free home improvement workshops. The company has branded themselves as experts in the DIY world. They hire people who can give expert advice and help customers finalize projects that they have