Home Depot, founded in 1978, pioneered the warehouse retail concept in the home center industry. The company niche strategy led rapid growth in sales. By 1986, however, the company began to experience a decline in profitability. Students are asked to analyze the company’s performance with ratio analysis and sustainable growth framework, and to recommend a plan of action.

Home Depot, founded in 1978, pioneered the warehouse retail concept in the home center industry. The company niche strategy led rapid growth in sales. By 1986, however, the company began to experience a decline in profitability. Students are asked to analyze the company’s performance with ratio analysis and sustainable growth framework and to recommend a plan of action.
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Krishna G. Palepu
Source: Harvard Business School
24 pages.
Publication Date: Apr 25, 1988. Prod #: 188148-PDF-ENG
Home Depot, Inc. HBR case solution