Environmental and Industrial Analysis of Home Depot

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Table of Contents

INTRODUCTION 4
I. COMPETITIVE POSITIONING 4 Operational History 4 Competitors 5 Global Operations 6 Financial Strategy 6
II. BUSINESS MODEL ANALYSIS 7 Step 1: Value Proposition: (Advantage: Home Depot) 7 Step 2: Target Segment: (Advantage: Lowe’s) 8 Step 3: Determine Competitors 9 Step 4: Evaluation of Value Chain and Cost Model: (Advantage: Lowe’s) 9 Step 5: Evaluate the Value Network: (Advantage: None) 11 Step 6: Determine the Revenue Model of the firm: (Advantage: Home Depot) 12 Step 7: Critical Success Factors: (Table 3) (Advantage: Home Depot) 12 Business Model Analysis Grid 13
III. STRATEGIC RELATIONSHIP ANALYSIS 13 Readiness/Willingness for Inter-Firm Relationships: 13 Age/ Timing of Relationship: 13 Location of Relationship (Geographical and Value Chain): 14 Management’s Relationship Capacity and Expertise: 15 Market Context of Relationships: 15 Strengths and Positions of Parties: 15 Rival Relationship Comparison: 15
IV. McKINSEY 7S ANALYSIS 16 Strategy: 16 Structure: 17 Systems: 17 Shared Values: 18 Style/Culture: 18 Staff: 18 Skills: 19
VI. APPENDIX: TABLES AND FIGURES 22
VII. REFERENCES 28

INTRODUCTION

This strategic management field study will conceptually correlate lessons learned from our Environmental and Industry Analysis of the Specialty Retailing industry and directly apply them to an analytical assessment of The Home Depot Co. (NYSE: HD) Our analysis is predicated on implementation of specific diagnostic models: competitive positioning analysis, business model analysis, strategic relationship analysis and McKinsey 7S analysis. In the course of the presentation, it is our intention to highlight topical information, investigation data and summary conclusions that are essential for conceptualizing the internal and external dynamics of The Home Depot Co. Our research methodology is predicated on strict adherence to the criteria established



References: [ii] OneSource One-Stop Report: The Home Depot Co. Inc. (2010, November 2). Retrieved November 2, 2010 from OneSource: [iv] Biederman, D. (2010, May 31). Home Improvement on the Supply Chain: Journal of Commerce. Retrieved November 4, 2010 from Business Source Premier. [v] Christensen, J, & Eldridge, B, & Orimoto, J. (ND). The Home Depot, Inc. Retrieved November 2, 2010 from http://www2.hawaii.edu/~judychri/TheHomeDepot.html [vi] Garsok, J. (2010). How to Point, Click, E-Model: Money Magazine. Retrieved October 16, 2010 from Business Source Premier database. [vii] Shorey Consulting, Inc. (1997). Achieving Competitive Advantage through Sales and Distribution Strategy [ix] United States Securities and Exchange Commission, Form 10-K (Annual Report. (2010). The home depot, inc. Retrieved from http://www.homedepotar.com/2009HD10-K.pdf [x] Lowe 's annual report [xi]Home depot (HD). (2010). Retrieved from http://www.wikinvest.com/stock/Home_Depot_%28HD%29 [xii] Maloney, David [xiii] Gilmore, Dan. (Jun 11, 2009) Aggressive supply chain transformation at Home Depot. Retrieved November 2, 2010 from http://www.scdigest.com/assets/FirstThoughts/09-06-11.php [xiv] Bustillo, Miguel [xv] Coach, Dale. (July 20, 2009) Home Depot and Lowes: A look at their online customer service. Retrieved November 2, 2010 from http://seekingalpha.com/article/149949-home-depot-and-lowe-s-a-look-at-their-online-customer-service [xvi] Mahoney, Sarah [xvii] Walker, Rich. (Oct 20, 2008) Don’t ignore a huge market segment. Retrieved November 2, 2010 from http://www.windowanddoor.com/article/october-2008/dont-ignore-a-huge-market-segment [xviii] Long HD [xix] Colvin, Geoff. (August 20, 2009) Renovating Home Depot. Retrieved November 1, 2010 from http://money.cnn.com/2009/08/18/news/companies/home_depot_carol_tome.fortune/index.htm [xx] Tobin, Rachel R [xxi] Barbaro, Michael. (Apr 17, 2007) Home Depot to go green. Retrieved November 1, 2010 from http://www.nytimes.com/2007/04/17/business/worldbusiness/17iht-retail.1.5314895.html Web Links and Websites

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