Topic: Summary The world’s largest home improvement chain, The Home Depot Inc, or commonly known as Home Depot, was faced with a problem of how best they could steer through the new interconnected world of retail in the year 2011. In this paper I will analyze the issue right from its beginning and show how Home Depot devised ways of coping with the issue. Home Depot’s success in coping with the issue is largely attributed to the efforts and expertise of its then newly appointed chief executive officer, Frank Blake, and the co operation of all the leaders in the firm.
This report is based on the problem stated above and seeks to investigate the real cause and development problem and the methods that are used to solve the problem. It also shows how effective these methods are and gives directions on how better they could be used to achieve the company’s goals. In the introduction I will show how the firm became the fastest growing company not only in the United States but also in the entire world.
After a steady and continuous growth, the firm’s growth started to slow down. With this regard, Blake was appointed the CEO to spearhead its comeback. Home Depot was famous for its excellent customer services which with time had started to deteriorate. Blake and his top leaders had a great task ahead in order to regain the customers trust and more so the shareholder’s trust whose relationship with the company had grown hostile. The company applied many strategies in dealing with this problem which I will discuss in this paper. Also I shall recommend other strategies that the company could have applied or any other company could apply if faced with a similar problem.
The main objective of all profit making companies is increasing revenues. Without good customer relations, this prime objective would be hard to achieve. It will be shown in this paper how the company improved its customer relations and regained its customers’ confidence. Competition in any industry is one of the major challenges for any company. Though a challenge, it is viewed as a positive aspect in business because it helps improve services and products offered to customers.
In this modern world of diverse technological advancements, competition has hit a new level. The paper will show how Home Depot applied technology to cope with its problem. Various aspects of technology were used, the most notable being using internet to reach out to customers and getting feedback from them. Social networks such as twitter and Facebook were used. Home Depot managed to wade off competition from its main competitors by application of strategies which were both short term and long term solutions.
Blake put into consideration the future of the company by putting in place strategies that would help avoid a reoccurrence of a similar problem and also those that would help cope with a similar problem would it occur again. Hagg, A. (January 01, 2001). Creating a culture of commitment. Contingency Planning & Management.