Question on Internal analysis

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Home Depot – conduct an INTERNAL ANALYSIS of their resources and capabilities in order to understand the sources of their competitive advantage.

You will find the firm’s most recent 10-k report in Sakai in the Case Assignments folder.

Your task is to

  • Follow the guidance from the Internal Analysis Template to:
  • With a quick review of their financial performance, describe any observations you can draw about how Home Depot’s sources of competitive advantage are evidenced in their performance? That is, can you identify linkages of cause (specific resources or capabilities) and effect (performance metrics)?

a.Identify and describe what you believe are the firm’s 5-7 most important resources or capabilities. For each item, categorize it as a resource or a capability.

b.Using the VRIO criteria and a rating method such as that described in the template, prioritize the above items to argue your conclusion about the three (ranked 1-2-3) most strategically valuable resources/capabilities for Home Depot…that is, what three things best describe the source of their competitive advantage? Explain how and why you arrived at your conclusions.

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