Case | HBS Case Collection | April 1988 (Revised October 1996)

Home Depot, Inc., The

by Krishna G. Palepu


Home Depot, founded in 1978, pioneered the warehouse retailing concept in the home center industry. The company's niche strategy resulted in rapid growth in sales. By 1986, however, the company began experiencing deteriorating profitability. Students are asked to analyze the company's performance using ratio analysis and sustainable growth framework, and to recommend a plan of action.

Keywords: Mathematical Methods; Performance; Business Strategy; Retail Industry;


Palepu, Krishna G. "Home Depot, Inc., The." Harvard Business School Case 188-148, April 1988. (Revised October 1996.)