an early on, and Donovan now ôspends several weeks at the beginning of each year with Mr. Nardelli, who earned his respect for human resources at General Electric Co.ö (Maher). Donovan notes that ôCEOs and boards of directors can be one of your biggest game-changers in terms of competitive advantageö (Maher).
Home DepotÆs tremendous success provides advantages in itself that increase the companyÆs strengths. The companyÆs branding and reputation keep it at the top, and the economies of scale made possible by its huge size give it an economic advantage that no competitor can approximate (ôCompany Analysisö). Its size also allows it the latitude incorporate tandem strategies into its primary strategies. For example, it has a well-developed supply chain that includes two large product import distribution centers, one in Savannah, Georgia and the other on the West Coast (ôCompany Analysisö). Employing information transfer from stores to suppliers about the products that each store needs, as well as a reliable transportation system for carrying the products to the correct places, the supply chain is efficient and effective (ôCompany Analysisö). However, Home Depot carries the supply chain value one step further by making it a model for supplier diversity; it ôworks hard to make sure its suppliers reflect the demographic makeup of its customer baseö (Caminiti 8). Home Depot uses thousands of suppliers but reaches out to small, minority-, and women-owned businesses in order to build strong communities (Caminiti 8). As a result, the company ôhas experienced tremendous growth over the years in the number of women and minorities who shop in its storesö (Caminiti 8). In addition, by strengthening business within each community, Home Depot expands its own business by extension; as a result of improved local economy, customers can afford to buy more products at Home Depot (Caminiti 8).
Another Home Depot strength is...