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Critical Factors to the Success of Home Depot

Home Depot is one of the largest retailers of home improvement products and services. The company has over 2255 retail stores across 50 states in the U.S. The company employs more than 300,000 employees. The company is listed on the New York stock exchange and in the doe Jones. The company enjoys good revenue. In the finical year of 2011, the company made a profit of 3.9 billion and their gross sales were up to 70.4 billion. The company’s stocks enjoy good ratings and trading in the stock exchange. The dividends paid for the stocks are good and shareholders enjoy many benefits that come with the strength of the stocks (Burritt). In the year 2010, home depot bought a portable device technology. This technology is aimed at easing the process of stocking shelves. It also allows them to keep an eye on customers no matter which part of the store they are in. this has helped a lot in improving customer service. The company is an all-rounded company. This is because when customers have money, it allows them to do home improvements more often. This stocking technology has allowed home depot to make huge profits. This technology helps them in knowing which products have been lifted from the shelves and need replacement. Because of the positive feedback that they are receiving because of this technology, it is safe to assume that they will invest more in these types of technology. The company is also searching for new technology that will help them stock their shelves better. Factors Leading to its Success Home Depot is aiming at serving customers better. They want to improve customer’s satisfaction so that they can get more revenue in sales. Some of the measures that home depot has undertaken so as to improve their services are, Customer service – continued focus on customer service is driven by philosophies of making an emotive link with the customer. These philosophies are putting the customer first and making the business simple. Home depot has opened new call centers in Utah and Georgia simply to have a more personalized connection with the customers. All these centers have been opened in the last financial year. This has played a major role in increasing the earnings and profit margins for the company. In additions, new wits such as the new arrangement system for secondary and centralized return to seller process has more than 57% of all labor hours dedicated to customer services and by the end of the financial year of 2013, the labor hours will have reached 60%. In addition, other measures will be put in place to ensure complete customer satisfaction. This will lead to increased sales bringing the stock price to a higher price. This will put the stocks in a better position than the previous year. Product authority – focus on product expertise is enabled by selling transformation and a collection of strategies, which are aimed at delivering product novelty, variety, and worth. An extension of this approach, new merchandise, and importance for both our expertise and D-I-Y client in a variety of divisions are the focus of the approach. In addition, expansion of showrooms to accommodate more products especially the Electrolux, whirlpool, and Frigidaire will help in helping these brands to move and reach more consumers. This is because of the exposure that these brands will have on the open market. Controlled capital distribution, efficiency, and competence – the tactic of driving productivity and effectiveness are advanced through nonstop operational upgrading.