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Essay / Research Paper Abstract
A 10 page paper discussing Home Depot's difficulties since the turn of the century. It appears that Home Depot's stock price may not have reached the lowest point it will in the near future. Certainly the company has some realigning to do, and why it did an about-face on the segment of the market it targets remains a mystery. Home Depot has allowed Lowe's to use the very methods Home Depot used to overtake Lowe's in the past. Both companies certainly need to watch other competitors in the industry, but they most especially need to watch each other. Home Depot needs to court the homeowner once again, but it certainly is not in danger of takeover any time soon. Bibliography lists 9 sources.
Page Count:
10 pages (~225 words per page)
File: CC6_KShomeDep05.rtf
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Unformatted sample text from the term paper:
the "big box" home improvement chains, Home Depot has been in decline for much of the new century. Investors have orchestrated a decline of more than 60 percent of
Home Depots former market capitalization over the past three years, bringing its stock value to market capitalization of just over $76 billion. Shareholders have been disappointed in new-CEO Nardellis
approach, as have been customers. A "manufacturer with no retailing background ... he cut full-time staff, capped wages and recruited a cadre of former military officers to run his
stores. Staff morale and customer service duly collapsed" (A do-it-yourself disaster; Home Depot, 2003). From the customer perspective, finding assistance in a Home Depot store is every bit as
frustrating now as it was at Lowes in years past. There are indications that Home Depots fortunes may be improving, however. Current
stock price is only half what it was in 2000, but it is immensely better than the level it occupied in early 2003. Economic Conditions
It seems that pronouncements of even the slightest of downturns in any economic indicator turns into a self-fulfilling prophecy within the space of a month or two.
The Conference Board announced in February 2005 that consumer confidence had slipped, so of course the headline in March was "Consumer Confidence Index Dips In March" (2005). The Conference
Boards Consumer Confidence Index "now stands at 102.4 (1985=100), down from 104.4 in February" (Consumer Confidence Index Dips In ). In fairness,
the decline appears to have more to do with rising fuel prices than with any deep-seated fear of the months to come. Quite the contrary, according to the Conference
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