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The Home Depot, Inc. Case Analysis.
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The Home Depot, Inc
Case Analysis
FINA 273
Professor Krishna R. Kumar
By Anastasia Nasyrova
Master of Science in Finance
George Washington University
1. The Home Depot's competitive strategy is based on merchandise strategy. The company offers low prices by exploring the concept of the warehouse retailing. The warehouse stores located in the suburban places, the high volume of inventory displayed on the industrial racks and the simple facility design, allowing the company to pass savings on the customers. In order to increase convenience and out-of stock issues all inventory presented on the sales floor of the store. The Home Depot assures that the quality of the product offered is best and satisfied customers of different test, experience and knowledge of home improvement projects.
The Home Depot practices decentralized management, especially for its buying function. Regional buyers and merchandisers from six regions make product mix and inventory decisions. Consequently, while product categories are similar from store to store, suppliers can differ. The sheer sales volume of the Home Depot stores enables them to exert considerable influence on suppliers, even dictating such important aspects of the buyer-suppliers relationship as delivery terms
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