Shareholder Value in My Opinion,

Shareholder Value In my opinion, the first issue that the company should be addressing is the post-sale aspects, including service and quality assurance. As a retailer, the services you are able to offer is really what makes the difference between you and the competitors. As a retailer, you do not sell a product that you produce and that you can improve or make cheaper, but you sell a set of services.

The more complete and convincing this set is, the more you are able to increase customer satisfaction and customer retention. On the Internet, there are several websites that have complaints to the professionalism with which Home Depot handled its post-sale obligations. Creating a special department, referred to as the post-sale department, answering directly to the director of each store, would help make the necessary connection between the customer and the leading staff.

In terms of the external environment and the opportunities brought about by globalization and a global economy, the most important thing that should be mentioned is the necessity to use the Chinese market as a main procurement area. Already there are procurement offices in Shanghai and Shenzen, but the Chinese market is an excellent supply source. The main reason for extending into China is the low costs at which goods can be bought here.

The economic situation in China is quite clear nowadays: with an annual GDP growth rating 10% in the last years and with a population of around 1.2 billion people, Chinese exports have already entered the most important markets around the world. Direct investment and implementation into China would make Home Depot the beneficiary of all the positive aspects in the Chinese economy. On the other hand, in terms of retailing, expanding into Europe may be a good idea in the short run, the next 1-3 years to follow.

The European market offers a strong demand, close economic ties with the U.S. And cultural similarities. The British market, for the beginning, may offer a potential target for Home Depot stores. In terms of competitors, Lowe is the strongest competitor on the market. With a revenue growth of 16.4%, compared to Home Depot's 11.3%, Lowe is a competitor to be taken into consideration.

On the other hand, it is, in my opinion, less than likely that the antitrust laws in the United States will allow these two giants to merge, given the fact that the joint company is likely to hold a monopoly in the industry. As such, an acquisition of the company's main competitor, Lowe, is only likely to bring about additional problems for Home Depot. The question is how can Home Depot enhance its value and be more competitive on the market.

As presented previously, first and foremost it can diversify and improve its post-sale set of services, to include quality and timely delivery among them. Second of all, a significant presence on the Chinese market (later on the Indian market as well) is recommended in order to improve the company's supply chain. As shown.