preview

Business Model Of Home Depot Essay

Better Essays

1. Business Model According to Don Debelak of entrepreneur.com “A great business models depend on developing three "green lights," or qualities that help the business succeed: finding high-value customers, offering significant value to customers, and delivering significant margins. Great business models also avoid three "red lights" that can derail a business: difficulties in satisfying customers, trouble maintaining market position, and problems generating funding for growth.”(entrepreneur.com, 2007) The Company operates retail stores and call centers, and conducts online retail operations. Home Depot is considered a service based business. Home depot depends on people and the client experience and it also targets different markets in general. 1.1Market Model A market model states the return generated by a security is dependent on that generated by the market portfolio and the degree to which the security responds .Market model basically outlines the customer’s position in the industry and net worth. Home Depot has witnessed phenomenal growth with the stock price growing by over 270% in the last five years according to Forbes magazine. Home depot is currently the leader among competitors like Lowes with a ~27% share. (www.forbes.com, 2015) 1.2 Financial Model The main source of revenue for Home Depot is the sale of home improvement goods and services. Home depot caters to three main types of retail customers DIY (Do It Yourself Customers), DIFM (Do It for Me Customers)

Get Access