Downsizing

Downsizing is reducing the business portfolio by eliminating products of business units that are not profitable or that no longer fit the company’s overall strategy (page 44). An example of this would be The Home Depot eliminating their Expo Design Centers. I currently work for The Home Depot and last April, they closed a total of 34 Expo Design Centers. The Expo Design Centers specialized in upscale home remodeling, but The Home Depot found that if people wanted an upscale home, they would just go out and buy one. Even with the housing boom, the market for upscale home renovating was never really there. Now with the Expo Centers closed, The Home Depot stores focus on letting the Do-It-Yourselfers know that they can still design and special order the bathroom or kitchen of their dreams in the normal stores. This helps The Home Depot build relationships with all their customers all at one place, which keeps them coming back to the same store.

Polly Hoang, Section E