DESTEFANO. While I see your concern, we need to accept the reality that customers increasingly desire one-stop shopping experiences. Just look at the growth of competitors, new and old, encroaching on our traditional home improvement market as well as the growth of one-stop shopping models.

MENEAR. I think its safe to say that this is an issue that is going to warrant more work. Given that we all are swamped, any final thoughts before we adjourn?

HOFMANN. It seems like everything we have discussed today comes down to us figuring out how to create a seamless customer experience. We need to deliver value to our customers regardless of the channel they use, in a manner that doesnt dilute our brand. In this regard, we face an opportunity and a challenge. We are a brick-and-mortar retailer with over 2,200 store assets that we need to

find the best way to leverage. We have existing resources and capabilities that have enabled us to successfully compete in a retail environment that has experienced fundamental shifts. We have been able to work well with our traditional customer, but we need to forge relationships with emerging customer segments, such as millennials, who will be our next largest homeowner segment. How do we keep up with future changesin the retail landscape and with our customers?

BOMAR, with a smile. And do so in a way that allows us to be successful financially. MENEAR. On that note, I say we bring this meeting to a close.

THE DECISION

Menears top managers left the boardroom and he returned to his office. There, he contemplated the major questions the company would need to answer to effectively compete in an interconnected retail world. Menears first question was how the interconnected retail experience would need to change with customer changes (e.g., traditional customers changing expectations and attracting and understanding future customers).

Second, Menear thought about how Home Depot could differentiate itself from other online retailers who have not traditionally competed in the home improvement market. What did Home Depot have to offer that its competitors did not that would allow Home Depot to maintain its competitive advantage?

Third, Menear wondered if identifying the companys current business model and product and service portfolio would help to determine how it should compete, and against whom.

Fourth, as discussed in the meeting, what fulfillment approaches would be best used to provide a quality online experience while effectively using the physical store space?

Finally, Menear considered, How do we maintain the use of our stores to enhance our online experience while providing excellent customer service? How can all functional areas work together to enable an interconnected experience between ordering online and shopping in the physical store? How should Home

Depot measure success?

ASSIGNMENT QUESTIONS

Read the case and bring answer of each question

1a.How does the company compete with traditional brick- and-mortar retailers versus online-only retailers?

1b.What role should online channels fill?

1c.What role should brick-and-mortar channels fill?

1d.How should Home Depot best leverage the distinct characteristics of the online and in-store channels to gain a competitive advantage?

1e.What are the current challenges and future considerations for Home Depot in providing a seamless customer experience?

1d.What are the implications for the different functional areas (e.g., marketing, finance, 1e.purchasing, warehousing, transportation, store operations)?

1f.How should the company prioritize future investments?