Home Depot and Interconnected Retail
Posted: 9 May 2012
Date Written: March 22, 2012
In November 2011, just days before the holiday shopping rush, the senior leadership team of The Home Depot, Inc., (Home Depot), the world's largest home improvement chain, discussed how best to navigate the new interconnected world of retail. Retailers across the board faced a rapidly changing environment with the growing acceptance of on-line retailing that empowered customers by providing greater price transparency and more options. Marketing channels and communication touch points continued to shift. Home Depot's leadership grappled with the challenges of operating in an interconnected world, how best to leverage Home Depot's brick-and-mortar success in the new environment, and continuing to build and sustain lasting emotional connections with customers.
Learning Objective: The case is intended to cause students to examine the growth options available to retail companies in mature markets. Students will probe the challenges faced by large retail companies when presented with changes in technology, economic conditions, and consumer behavior. The case is also intended to challenge students' understanding of the interplay between corporate culture, corporate strategy, and market pressure in a large retailer.
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