Home Depot Strategy Analysis

Muhammad Chughtai Daniel Tesler Home term Case Analysis Home Depot is a large U.S. based company that competes in the low appeal home improvement sell and service diligence. Home Depot is a global company because they also restrain consumers in Canada and Mexico, the potential to expand their market to other beas globally and buzz off a global supply chain. In the U.S. market, the industry is unvoiced and in the mature stage with Home Depot and Lowes making up a duopoly because they are the only twain major players that compete at a similar retail volume nationwide. With only two large companies in the industry, at that place are high entry barriers because of the high cost unavoidable to obtain the key success factors to compete against these established companies. In the home improvement retailer industry, the key success factors (KSF) are the ability to meet competitive pricing, a broad ruffle up of products and distribution capabilities. Because Home Depot and Lowes sell an basically homogeneous selection of goods, any new competitors in the industry would have to be competitive in their pricing to disgorge customers. Both companies stock a large number of products to build a one stop shopping experience and have extensive distribution channels from suppliers worldwide.

On the macro train and during the time of this case study, the PESTEL analysis from Exhibit 1 indicates a favorable environment for the home improvement retail industry. The U.S. was passage through a period of increased housing takings and property values were rapidly increasing in price. there was significant opportunity for Home Depot to sell mental synthesis supplies to contractors creating new properties and home owners that were looking to increase their property values. in that respect was also a large pool of potential customers because the judicature had been promoting home ownership through subsidizing mortgages and creating tax deductions for mortgage following payments. There was also a shift in... If you want to tucker a full essay, order it on our website: Orderessay

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