The Home Depot Mission and Vision Statements Analysis
The Home Depot’s mission statement is to provide the highest level of service, the broadest selection of products, and the most competitive prices.
The Home Depot’s mission statement explained through its components:
Provide the highest level of service: The Home Depot is committed to selling a great quality of products, price, and selection with a trained staff that makes an extra effort to give merchandise advice to customers and help them use the product in their maximum benefit.
The broadest selection of products: With more than 35,000 products in-store and 1 million online, The Home Depot is positioned as the world’s largest home improvement retailer.
The most competitive prices: The company has an aggressive policy trying to offer the lowest prices within the market. It has also established the Low Price Guarantee strategy that works for in-store pre-purchases. When a customer finds a lower price on an identical in-stock item from other retailer, it matches the price.
The Home Depot started in 1979 when the first two do-it-yourself stores were opened in Atlanta, Georgia. The warehouses were about 60,000 square feet each and stocked 25,000 products, overpassing by far the average hardware store at that time.
The company has grown to become the largest home improvement retailer with 400,000 associates and 2,200 locations in the US, Canada, and Mexico. In 2019, it achieved revenues for $ 108.2 billion. An average THD store is 105,000 square feet of indoor retail space. The business is interconnected with the eCommerce platform, which offers more than 1 million products for DIY customers, professional contractors and other installation businesses.
The Home Depot makes money through the sale of materials, tools, products, and machinery for home renovation, construction, decoration, and gardening. It also offers different solutions and services for customers that do not do the installations themselves but they hire the company’s technicians to complete the projects. Services include the installation floors, cabinets, cabinet makeovers, countertops, furnaces, central air systems, and windows.
The Home Depot’s business model is the sale through physical stores and the online platform. It supports the strategy by providing a high standard customer experience, competitive prices, availability, good quality of materials, and a wide variety of products and delivery options. All these goals can be achieved by conducting online surveys, through which the company determines what its customers expect.
The Home Depot is not a monopoly. It competes in the home improvement segment of the US, Canada, and Mexico where there are many other providers. However, in the US, it can be considered an oligopoly because the market is mostly distributed between THD and Lowe, its main competitor with 310,000 employees and $ 71.3 billion in revenues.
Both have been considered the giants of the American home improvement retailer industry for decades. Other The Home Depot’s competitors are Menards, True Value, Ace Hardware, Canadian Tire, Home Hardware, ILDC, and Sodimac Homecenter.
The Home Depot’s vision statement is to create a company that would keep alive the values that were important to us. Such values started the company 40 years ago and it intends to respect them until today. They include an excellent customer service and giving back to communities and society.
The Home Depot’s core values are:
- Excellent customer service: They provide their clients advice about the purchases and how to make the best of them.
- Taking care of our people: It is about treating people well encouraging employees to speak up and take risks. They recognize and reward the good performance and develop them to grow.
- Giving back: They contribute with worthwile causes in communities and societies.
- Doing the “right” thing: They strive to understand the impact on their decisions and accept the responsibility for their actions.
- Creating shareholder value: They are commited to provide shareholeders with the return they are expecting over the investments.
- Respect for all people: The company fosters an environment of mutual respect among the employees.
- Entrepreneurial spirit: THD encourages employees to come up with initiatives and ideas that improve the customer experience and spread well practices among the company.
- Building strong relationships: They work to listen and respond to the needs of customers, employees, communities and vendors treating them as partners.
The Home Depot annual report 2019; available at: https://ir.homedepot.com/financial-reports/annual-reports/recent
Home depot Inc.; posted at Market Watch; available at: https://on.mktw.net/3ksc4HX
Lowe’s Cos.; posted at Market Watch; available at: https://on.mktw.net/3mzv8Gi
FERNANDO, Jason; Home Depot vs. Lowe’s: What’s the Difference?; posted on 03/10/2020 at Investopedia; available at: https://bit.ly/3hzMdfx
Home Depot Mission Statement History
Home Depot mission statement remains unchanged through 2020 and 2021