Comeback of the Orange

Home improvement retail companies profited when the real estate industry bloomed. However, the good times did not last long. The “housing meltdown” caused them to have large number of excess stock on hand that were not going anywhere. Needless to say, their year-end numbers did not look appealing to investors.

In the past years, Home Depot stood out, in terms of growth, as compared to their competitors, Lowe’s and Menards. In order to increase sales, the Home Depot decided to concentrate more on products for the interior of the house. These included household cleaning supplies, decorative goods, plants, and interior design products.  As mentioned in Chapter 2, you have to understand the market and learn to improve operations. Home Depot studied the market to understand it. They saw that consumers were not looking to build any more houses so they changed their direction to selling products that go inside the houses.

Home Depot’s mission statement is, “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.” Within their mission statement, they also mentioned their eight core values. Some of these include, “excellent customer service, doing the right thing, and taking care of our people.” They believed by providing the best service will bring in more customers and create a loyal customer base. Home Depot implemented many different services that their competitors don’t provide. Some of these include installation services, rental services, matching and beating competitors’ prices, and providing an order online, pick up in store service. They are competing against other home improvement retail companies by utilizing their uniqueness.

Home Depot made a strategic decision by providing the service, meet and beat competitors prices. They are willing to match the competitors’ price and give an additional discount to make the customers feel good about shopping at the Home Depot. This service will help them create a loyal customer who will come back to shop. Personally, I have some previous experience working at the Home Depot and providing great customer service is the value that Home Depot management stressed upon. Every associate is given a certain dollar amount that they are able to discount to make the customer satisfied with their purchases.

It seems like their strategic decisions and services that differentiate them from their competitors are working well. Some will say that this company was “rebuilt to last .” Recently, Home Depot reported a 32% increase in profits during their fourth fiscal quarter. Their overall sales increased by 14%. In addition, the company also saw an increase in their installation services.

Do you agree that this company is “rebuilt to last?” Have you shopped at The Home Depot recently? Did you notice the changes mentioned in the article? Which other companies have you noticed recently that experienced immense growth?



Cheng, A. (2013, Feb 26). Home depot profit jumps. Wall Street Journal (Online). Retrieved from



3 thoughts on “Comeback of the Orange

  1. Operation managers at Home Depot have certainly been keeping an eye on market trends. Their strategy to put more emphasis on home interior products is giving them a competitive advantage. Their mission statement is a good reflection of how they want their customers to view them, a home improvement business. The company’s increase in sales is evidence that Home Depot’s strategy is working. By providing excellent customer service and offering products consumers are looking for, they are differentiating themselves from the competition and increasing the performance of their employees to satisfy customer needs.

  2. I do think that the rebranding of Home Depot created a lasting company. The Supply Chain Managers correctly identified the spending patterns of consumers to rebrand the store. This combined with a complete dedication to customer service solidified them as a the premier home improvement store.

  3. With the extended variety of products that can be found at Home Depot, in addition to its emphasis on customer service can definitely keep increasing the company’s sales. The quality of service greatly aids in how customer’s view a specific business. This one factor is completely powerful in making a consumer’s experience well worth their purchase.

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