Decision Analysis

Decision Analysis helps The Home Depot understand what drives its key constituencies. From channel partners to homeowners, THD routinely conducts research that leads to breakthrough new product ideas, a better understanding of consumer and contractor decision making, insight into the shopper's journey, and much more. By following the proposed business Model of building better partnerships and relationships with stakeholders and vendors along with innovating and improving its online eCommerce and in-store experience and pro services to its pro consumers. THD can grab a huge percentage of market share from the global home improvement market which was valued at USD 1,415.98 billion in 2021 and is expected to grow at a CAGR of 5.23% in the forecast period, 2022-2026. Increasing demand for customized interior designing by consumers, rapid urbanization, and the surge in popularity of the D-I-Y (Do it Yourself) concept are the primary factors driving the demand of the Global Home Improvement Market in the next five years (Business Wire, 2022).

Total Quality Control (TQC)

For The Home Depot to maintain Total Quality Control, it must understand the customer’s determination and experience when it comes to quality and move in the direction of its customers as their experiences constantly change (Black, 2011). For this reason, The Home Depot has to set up or improve upon strategies, techniques, and actions to assure itself and its consumers that it is selling a quality product. This starts with their vendors and partnerships that are built between the two. This is a long-term company effort that begins first with The Home Depot’s managers committing to the process and extends to the suppliers, vendors, and even the customers as well.

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Current and Future Trends

Despite inflation, labor shortages and many other obstacles, the home improvement industry seems to look positive for 2022 and beyond. As more and more people adjust to a work-from-home lifestyle, they are making modifications to cater to those needs. In addition to different home layout trends, homeowners are also changing the design and remodel process itself. The following is a brief list of the top trends happening in the Home Improvement Industry that could effect The Home Depot (Medallion Bank, 2022).

1. Continued Investment in Home Improvements

2. DIY is Out with Millennials

3. Small Market Opportunities

4. Unpredictable Supply Chains and Demand

Decision Tree for New Business Model Probability Outcomes

Final Recommendations

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To maintain a leader in the Home Improvement Industry, The Home Depot must strive towards the following recommendations.

Supplier Diversity: Diverse group of suppliers provides our company with unique ideas, different perspectives and innovative products that meet the needs of our customers (The Home Depot, 2022).
Connect Operational processes to Customer needs
Connect Experience: Store To Online, Online To Store
Build stronger relationships with vendors in the tech landscape.
(Nasdaq,2017).

Based on the proposed business model, By adding a customizable experience for both Pro and DIY customers in-store and online, it will help in creating long-lasting and loyal customers. This can be done through partnerships with vendors in implementing AI, VR, and AR and Machine Learning solutions. This will create an in-home experience for the customers before ever making a purchase that could lead to increase sales and revenue despite the market economy post pandemic.