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Home Depot Inc.

The management of Home Depot Inc. realized that by 2006, the company was not doing well mainly due to decentralization and the lack of discipline in investment and supervision. As a result, customer service was not of high quality, and employee satisfaction was not meet which meant that the company lost its market share to its major rival, Lowe. Consequently, the company’s senior leadership team was replaced by a competent team of professionals. This dedicated team was able to lead the company back to its former glory even with the global recession hitting major companies in 2007. These improvements were evident in market share gains, strong business unit gains, employee satisfaction, and efficient supply chains and operations. However, no significant business management changes were achieved under the leadership of the new CEO, Frank Blake.

2011 saw Home Depot grow steadily but not without facing new organizational challenges. A new online retailing system that gave consumers a better bargaining power was established. With a new well-interconnected business atmosphere, Home Depot had to strategize on how to minimize its efficiency challenges. Customer service mentality had to be changed with the management emphasizing on building a customer-organization relationship as opposed to focusing on one sale transactions. An entrepreneurial spirit and culture was emphasized through autonomy and independence of the company’s stores. Under the management of Blake, three goals were achieved that resulted in positive company growth: top customer service, clean stores, and stocked shelves. With advancements in technology and e-commerce, Home Depot established online market stores. It was this journey to the retailer through online marketing that enabled the company to realize its brick-and-mortar success. Now ,it boasts of numerous stores in the United States and abroad. It has been able to adequately cater for its three groups of customers. However, is the success of the company a result of change in the leadership team and online marketing or is it a result of centralization of merchandising?



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