The Home Depot Mission statement demonstrates a great example of a company that really understands its audience.
Their one-sentence statement reads:
“The Home Depot is in the home improvement business, and our goal is to provide the highest level of service, the broadest selection of products, and the most competitive prices.”
It’s simple, honest, earnest, and down to earth, all qualities which are exactly what customers would look for when choosing where to shop for home renovations and DIY.
Sure, it may not be quite as exciting as the statements put forth by brands like Whole Foods, where saving the planet and revolutionizing their industry is the aim of the game. Still, it’s nonetheless effective and perfectly in alignment with what The Home Depot customers really want.
Below, we’ll explain exactly why this simple mission statement is so effective and what lessons you can learn from it when putting together your own mission statement.
|Founded:||February 6, 1978|
|Industry:||Home improvement retail|
|Market cap:||$341.89B (as of August 2021)|
The Home Depot Mission Statement – In-Depth Analysis
We mentioned right at the beginning that Home Depot’s mission statement shows how well they understand their target audience. What’s most interesting about this is that they demonstrate this understanding without ever specifically mentioning that audience.
While this could be seen as a flaw in their statement, we would argue that it’s actually a strength:
The brand has found a very clever way to speak directly to its customers without specifically mentioning them.
Here’s how they do it.
Declaring What They Do
“The Home Depot is in the home improvement business…”
The opening nine words of Home Depot’s mission statement are blunt and to the point, leaving you absolutely no doubt about who they are and what they do.
This is the first way that the company speaks directly to its customers. It’s a simple way of saying, “look, if you need to make home improvements, we’re your guys.”
In doing so, they immediately let it be known that they’re in a good place to meet the needs of all three main types of customers they serve:
- Professional contractors
- Those who need home improvements would rather outsource the work to somebody else, such as through Home Depot’s installation services.
Explaining Why Customers Should Choose Them
“Our goal is to provide the highest level of service, the broadest selection of products, and the most competitive prices…”
As we’ve seen countless times before, the best mission statements don’t just explain why a company exists but also how they stand out from their competitors.
In other words, it isn’t simply enough for Home Depot to exist in the home improvement space. Sure, it’s a good start, but they also need to explain why customers should choose them rather than Lowes or another DIY retailer.
Fortunately, the brand does an excellent job of that here by focussing on the three things that customers value the most:
- A high level of service
- A broad selection of products
- Competitive pricing.
Again, this isn’t necessarily as glamorous or game-changing as setting out to change the world, but it does truly demonstrate that Home Depot is a company “of the people.” Furthermore, it demonstrates that when you shop at one of the company’s 2,312 stores or via their enormous online presence, you know exactly what to expect.
The Home Depot Vision Statement
Unlike other companies, Home Depot doesn’t have a set vision statement, though the company’s vision can be found in their company’s history:
“Avid DIYers, they [founders Bernie Marcus and Arthur Blank] envisioned a superstore that would offer a huge variety of merchandise at great prices and with a highly trained staff. Employees would not only be able to sell, but they would also be able to walk customers at every skill level through most any home repair or improvement.”
Today, the company’s mission statement and values are still a good reflection of that original vision and help Home Depot to continue delivering exactly what its founders envisioned.
See also: Chick-Fil-A Mission Statement Explained
The Home Depot Values
Home Depot describes itself as a “values-driven company,” with everything they do center around eight core values.
Excellent Customer Service
It isn’t by accident that customer service is listed as Home Depot’s first core value.
The company understands that going the extra mile for customers and providing knowledgeable advice is key to their entire success.
Taking Care of Our People
With this value, Home Depot demonstrates how well they understand that looking after their people is essential to ensuring excellent customer service.
When customers are happy, motivated, rewarded, and respected, they’re far more likely to perform better, leading to increased customer satisfaction.
Corporate social responsibility is a cornerstone of most successful businesses, and Home Depot is no exception. Their commitment to giving back sees them donating time, people-power, and resources to supporting worthwhile causes in the communities that surround their 2,000+ stores.
Doing “the Right Thing”
This is Home Depot’s way of addressing the need for businesses to act with honesty and integrity, doing what’s right for the customer before doing what’s right for themselves.
Creating Shareholder Value
While the company is undoubtedly a customer-first business, they still understand that they need to provide shareholders with a solid return on their investment as a publicly traded company.
Respect for All People
Respect for All People addresses Home Depot’s commitment to equality and anti-discriminatory practices.
The company encourages its employees to think creatively about the best ways to serve customers, grow the business, and support communities. This ensures that team members feel valued and can provide genuine input into the way things are done.
Building Strong Relationships
Relationships with customers and shareholders, supplies, team members, and the local community helps the company deliver on their mission and maintain all of the other seven values.
Home Depot’s mission statement and values may be simple, but there’s still a lot we can learn from them. For us, the biggest three take-aways from this analysis include:
- Know what customers want – While shareholder value and corporate social responsibility are still important, Home Depot has built its success on the back of a customer-focused strategy, understanding exactly who its customers are and what they expect and ultimately tailoring its mission to meet those expectations.
- Consider what sets you apart – The company’s statement focuses on their commitment to delivering great service, products, and pricing, making this one of the best examples of a mission statement that really shows a company striving to stand out from the crowd.
- Being customer-focused doesn’t mean compromising on profits – On the contrary, the brand’s core value of providing a good ROI for investors shows that Home Depot has managed to strike a balance between meeting the needs of both customers and shareholders.
Businesses With Similar Values
Home Depot’s values have clearly helped them to develop a position as industry leaders, so it’s no surprise to find that other major names also have similar values.
- Lowes – As Home Depot’s biggest retailer, it makes sense that Lowes would share some of its values. In particular, their customer-focused approach and values of respect, teamwork, and integrity closely match Home Depot’s.
- FedEx – Unlike Home Depot, FedEx’s mission statement focuses first and foremost on shareholders. Still, a closer look at their values shows they also work to create a good balance between profitability and meeting customer needs.
- Walmart – Walmart can also be considered a competitor to Home Depot. Their four values of Service to the Customer, Respect for the Individual, Strive for Excellence, and Act with Integrity is certainly very similar.
Frequently Asked Questions
Question: What is Home Depot’s motto?
Answer: Home Depot’s current motto is “How doers get more done.” In 2019, this motto replaced their previous slogan, “More saving. More doing.”
Question: What is Home Depot’s strategy?
Answer: Home Depot’s strategy is called “One Home Depot” and aims to blend their eCommerce arm with their brick-and-mortar stores to create a fully connected shopping experience.
Question: Who are Home Depot’s customers?
Answer: Home Depot caters to both domestic and commercial customers, including homeowners and DIY enthusiasts, professional contractors, and “do-it-for-me” customers searching for third parties to carry out home renovation work for them.