responsibility
- If a store manager wants to change the display or order more/less of a product they do not need to get authorization from headquarters - C227
- Cannibalization of sales of new stores to existing - C228
- Home Depot will open up new stores close to existing stores to:
- Improve customer satisfaction
- Reduce delays in shopping
- Increase utilization by existing customers
- Attract new customers to more convenient locations
- organizational structure:
- Decentralized management:
- Casual working environment in the corporate offices, according to an Human Resource spokesperson
- Regional managers
- There are 20 regional managers
- Each one is only responsible for six to eight stores
Weaknesses
- rapid expansion
- May be expanding too quickly and growing faster than corporate culture can handle
- See C224 - distracting to existing stores
- Corporate structure:
- Promoting from within - only will get an inside prospective
- Advertising
- Their strategy calls for aggressive adverting (C230), yet their sales are growing exponentially, yet advertising is stagnate
- Only targeting on sub market - DIY
- Suppliers
- Purchasing from 1900 - seams too high
- Employee turnover
Opportunities
- Small market share in the home improvement supplies market
- Approximately 5%
- Overseas
- Form partnerships with larger contractors
- Form partnerships with suppliers
- Use of newer technologies - such as the Internet
- Attract new business
- For example offer tips
- Form advertising relationships - i... displayed 300 characters
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Threats
- Mergers
- If Home Depot mergers with other companies, for example Bowater Warehouse, this may cause incompatibility with the two companies
- Expansion growth:
- This may lead itself to monopolistic inquires - especially if they continue with mergers displayed 300 characters
