Free Essay Home Depot History and Business Case Analysis
To: Robert L. Nardelli, - President and CEO of Home Depot, Inc.
Date: March, 04, 2004
First of all, I would like to thank you for giving me the honor to analyze your well organized and developed company. In this memo, I am going to discuss the strategic factors facing Home Depot, the strategies that the company has been following for the past years, and the distinctive competency Home Depot attain. Also, I am going to give my recommendations and opinion.
Some of the strategic factors that Home Depot faces are related to product quality, price, advertising, store capacity, competitors, and customer's independency and satisfaction. Most of these strategic factors helped in the growth and …show more content…
These strategies are implying higher expenses in order to be achieved, especially the huge expenses on advertising. I would like to make a comparison between two most growing companies in the USA (Home Depot and Wal-Mart) .In 2002, Home Depot spent 32 percent more than Wal-Mart Stores Inc., the world's largest retailer. Wal-Mart with annual sales almost five times higher than Home Depot's spent $676 million on advertising last year. (Jim Lovel. Home Depot ad spending $895M. Retrieved April 25, 2003, from http://www.bizjournals.com/atlanta/stories/2003/04/28/story1.html). Therefore, the more money you spend on advertising, does not lead to increase in annual sales but it leads to increase in expenses. Even though,