Comprehensive Internal Analysis of The Home Depot: A Business Report

This report presents an individual internal analysis of The Home Depot, a leading home improvement retailer. It begins by outlining the company's business model, focusing on its revenue generation through product sales and customer services. The report then delves into a brief history of Home Depot, its product offerings, and an internal analysis using SWOT analysis to identify strengths, weaknesses, opportunities, and threats. Furthermore, the analysis includes VRIO and RBV perspectives, assessing the value, rarity, imitability, and organizational aspects of the company's resources and capabilities. The value chain analysis explores primary and secondary activities, including inbound and outbound logistics, marketing and sales, and human resource management. A business model canvas is also employed to understand customer segments, channels, and customer relationships. Finally, the report assesses the company's financial performance, highlighting revenue and net income figures and concluding with a synthesis of the findings, drawing on the models of Value Chain, Business Model Canvas, VIRO, and RBV to tie the company's performance to its internal capabilities and strategic position.

Individual internal analysis
for the home depot

Table of Contents
INTRODUCTION ..........................................................................................................................3
a. company's business model ......................................................................................................3
b. Internal analysis of The Home depot.......................................................................................4
c. Value chain analysis ................................................................................................................5
d. Company's financial performance ..........................................................................................7
CONCLUSION ...............................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Internal home depot is one of the largest home improvement retailer, which supplies
tools and construction products (Augustin and et.al, 2018). This company has been founded in
1978 which has been 43 years till now. This report states about the purpose of analysis which
shows the market position of the company along with this internal analysis of this company is
also mentioned here. VRIO analysis and company's financial performance is being elaborated in
this report.
a. company's business model
Business model of the home depot shows that how this company makes money so that
they can survive in the market. As the home depot is indulged in selling home improvement
products such as building material, lawn and garden products and also it provides different
customer services. According to the business model, this company is focusing four business
elements which is build and acquire market leading presence, which falls under home
improvement business, company wants to give end to end home improvement products, the
home depot is focusing on giving professional customer services and also working to increse
the product revenue.
To make money, this company selling products from its online websites and also prom
the physical store of the company (Mjøsund, 2017). Apart from this, to make money, this
company is doing marketing and promotional activities so that it helps them to generate more
money and income.
Short history
The home depot is publicly traded company which was introduced on 6th February 1978.
currently it is located in many countries including Colombia, Canada etc. this company was
founded by Bernard Marcus, Pat Farrah, Ron Brill and Arthur Blank . This company is working
to expand their home improvement superstore.
Product
The major products of Home depot is home appliances, different home equipment tools,
hardware, lumber, various building materials, paints, floorings, lawn and garden suppliers and it
supplies numerous plants and tools which is essential for the development of home (Vlados,
2019).

b. Internal analysis of The Home depot
Internal analysis is a tool which is used by the company to know its strength,
opportunities, threats and weaknesses.
Swot analysis of the home depot
Strength
One of the biggest strength of this company is its leadership. This company focuses on
the cost saving and to enhance the productivity which is being done by the various strategies
made by its leaders (Yudiono and et.al, 2019). Its leadership style safeguard the company in
tough economic situations. Another strength of this company is productivity, this company is
know as the king of productivity. From the entering to the market, this company is performing
best in the market, an also the revenue of the company is getting increased. Apart from this,
diversification is one of the strength of this company. The Home Depot is focusing on providing
new products in the market.
Weaknesses s. As the company has maximum number in physical stores so now the company
This company also have various weaknesses such as macroeconomic conditions, as the
major physical store is situated in US, and the economy of US impacts the business and
performance of this company. When the economy drops down , profitability of the company
also may go down. The another weakness of the company is high debt, home depot has taken
huge debt to expand the company which becomes the weakness of the company.
Opportunities
At present the Home Depot has strong presence in US, Canada and Mexico. So the
company has an opportunity to expand their business on international market and tap into the
developing countries. As the company has maximum number in physical stores so now the
company is available on online to increase the presence and revenue.
Threat
Weather is one of the factor which is affecting the profit and sales of the company
because customers delayed and postpone the home improvement work. Another threat to this
company is competition ans the number of competitors is increasing who are dealing in the same
product (Hernández and et.al, 2018).
Valuable

The leadership and financial resources of this company is valuable and hard to copy, this
company has fo0lowed excellent leadership style which helps the company to attain the goal
the cultural organisation structure of the company is also valuable and hard to imitate.
Rare
The employees of this company is rare but competitors can duplicate them by offering
high salary package. Distribution network of this company is rare as it is an oldest company so
they have invested huge capital in the distribution network.
Imitable
The leadership and the financial resources of the company is costly and hard to imitate
for competitors also the distribution network is hard to copy.
Organisation
All the employees of this company is well organised and company provi8sdes them
proper training and development opportunities also the financial, marketing and human
resources of the company is hard to copy (Rosales and et.al, 2017).
Resources
and
capabilities
Valuable Rare Costly to
imitate
Organisation
capable of
exploiting
Competitive
performance
Leadership Yes Yes Yes Yes
Distribution
network
Yes Yes Yes Yes
Employees Yes NO No Yes
Financial
resources
Yes Yes Yes Yes
c. Value chain analysis
Value chain analysis helps the company to know its competitive edge in the market. It
gives competitive advantage to the company.
Primary activities

Primary activity of The Home deport shows the direct sale of its product to the intended
customers.
Inbound logistic
Inbound logistic refers to make strong relationship with suppliers who supplies the
goods to the company, and also the inbound logistic states about the receiving, storing, of the
products. This comprises warehousing of physical goods and products. As the home depot
makes the good relation with the suppliers who provide them necessary tools and equipments,
company maintain good relation with warehouse distributors.
Outbound logistic
It specify the activities, which helps in delivering the product to the customers. Some
major outbound activities of this company is material handling, warehousing, scheduling and
transporting distribution network which delivers the goods (Daou and et.al, 2020).
Marketing and sales
This company highlights the benefit of their products to the customers. With the help of
marketing and promotion company creates a position of their products in the mind of customers.
This states about the sales force management, channel sales management and various marketing
activities.
Secondary activity
Human resource management
HR of the company is looking for the recruitment, selection, training and development
and also provides rewards to the employees who perform as per the expectations.
Technology
Company is using technology to sell their products online and tap the untouched market.
Feature design, technology selection is also a part of technology.
Business model canvass
This assist the business to understand the model in a straight forward way. Using the
canvas, company may know about its customers (Daou and et.al, 2020).
Customer segment
This states about the targeted customer of the company who may provide high revenue
and increase the sales.
Channel

Company focuses on increasing the distribution channel to improve the profitability.
They are investing more in the distribution network so they may touch new customers.
Customer relationship
Company focuses on maintaining healthy relationship with the customers and trying ryon
satisfy the needs of the customers. (Umar and et.al, 2018).
Core competency
Core competencies of the company focuses on scale of network, relationship with
customers and employees as well and also try to give training to the labour so that tghey can
work as pert the expectation of the company.
Cost structure
Company tries to take affordable prices from the costumers so that any one can afford
their products.
d. Company's financial performance
As the financial performance of The Home Depot is concerned, overall this company is
doing well and have generated revenue of $2.857B, at the end of January 2021 (Home Depot
Net Income 2006-2021, 2020). the net income of 2020 of the company was $12.866B which has
increased 14.45% from 2019. so the company is properly using its resources and distribution
network to enhance the profitability and the sales of the company.
CONCLUSION
From the above report it is concluded that it shows the internal analysis of the company
and this report elaborates, Swot analysis, VRIO, value chain and business model canvas for the
company.

REFERENCES
Books and Journals
Augustin and et.al, 2018. SWOT Analysis for developing dry ports in Togo. American Journal
of Industrial and Business Management.8(06). p.1407.
Daou and et.al, 2020. The Ecocanvas as a business model canvas for a circular
economy. Journal of Cleaner Production, 258, p.120938.
Hernández and et.al, 2018. The link between a firm s internal characteristics and performance:
GPTW & VRIO dimension analysis. Revista de Administração IMED.8(2). pp.222-235.
Mjøsund, N.A., 2017. Strategy to provide an optimal bus depot(Master's thesis).
Rosales and et.al, 2017. Value chain analysis and small-scale fisheries management. Marine
Policy. 83. pp.11-21.
Umar and et.al, 2018. Business model canvas as a solution for competing strategy of small
business in Indonesia. International Journal of Entrepreneurship. 22(1). pp.1-9.
Vlados, C., 2019. On a correlative and evolutionary SWOT analysis. Journal of Strategy and
Management.
Yudiono and et.al, 2019. VRIO Analysis to Measure E-Business Readiness in the Automotive
Industry in East Java (Study on Otobus Company Kalisari and Otobus Company
Menggala). Wacana Journal of Social and Humanity Studies.22(4).
Online
Home Depot Net Income 2006-2021., 2020 [online] Available through:
<https://www.macrotrends.net/stocks/charts/HD/home-depot/net-income>