Home Depot opened its first home improvement store in Atlanta Georgia in 1978. The company developed a tactical product analysis providing an assortment of products and services to customers. The products Home Depot offers focus on contractors and the do-it-yourself customers, as well as free how to clinics and workshops for children allowing them to build an item onsite in the store. Home Depot has grown into an internationally recognized specialty merchant that markets and delivers 40,000 different building materials, lawn and garden products, home improvement supplies, appliances, and more than 250,000 other products that can be especially ordered (Unknown, 2003-2012). Home Depot has over 2,200 locations throughout the United States. Stores average 105,000 square feet with approximately 23,000 additional square feet of outside garden area” (Unknown, 2003-2012). Pricing Information
Home Depot needs to have a good understanding what the customer needs and wants are. Home Depot’s annual report shows the domestic outlook of expectations on procurement policies and procedures; Home Depot has changed its procurement policies and buying procedures. One service that Home Depot has eliminated as part of the changes is the design centers for kitchens and baths. These design centers were a service to the customer who used Home Depot products in the designs of the kitchen and bathroom projects, the service didn’t improve productivity at its stores as many customers had Home Depot’s design center create the layout of the kitchen or bathroom but would purchase the items, such as cabinets, sinks, lights, etc. from other home centers or online. Home Depot's operating strategy was to close its EXPO design centers and other internal businesses such as HD Bath designs. This would allow the business to focus on maximizing the stores productivity of the existing store base instead of offering services like...
References: McConnell, C., Brue, S., & Flynn, S. (2011). Microeconomics: Principles, problems, and policies. (19 ed.). New York, NY: McGraw-Hill Irwin.
Unknown. (2013). Annual report 2012. Retrieved on December 21, 2103 from http://www.homedepotar.com/
Unknown. (2003 - 2012). Home depot history. Retrieved on December 23, 2013from https://corporate.homedepot.com/OurCompany/History/Pages/default.aspx
Unknown. (2003-2012). Stores, products, and services. Retrieved on December 23, 2013 from https://corporate.homedepot.com/OurCompany/StoreProdServices/Pages/default.aspx
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