As Home Depot continues to expand, the cost of prime real estate will rise as they compete head to head with their main competitor, Lowes.
They also focused more energy into their social media marketing.
The reason is if they were to put smaller stores in the small towns and only stock what the town needed they would be able to grow a lot larger. Finally for the suppliers, the more they have the bigger they can get and they more items they have for the consumer.
They have Home Depot employees, who write how-to articles, blog posts and more on home repair advice, remodeling projects, gardening tips and more Zmuda Sourcing from other countries may significantly grow their gross margin. Additionally, they are appealing to their target markets through the promise of low prices and great customer service.
Products varied from well known national brands to propriety Home Depot brands. While expanding internationally, Home Depot will be careful to pay close attention to local building customs, laws, and regulations. Few other companies have such a stranglehold over the home improvement and supply market, and Home Depot does very well for itself in terms of attracting new consumers.
Now for the opportunities, for the economic and demographic areas, these two areas have the greatest opportunities to grow bigger.
The supplies are slow on delivery times witch will also concern the customers. They also instituted communication blackout days; two days a week when stores would receive no corporate messages or emails Mahoney By Home Depot plans on having over stores case. New Entrants New entrants to the home improvement will find it very difficult to compete directly with Home Depot and or Lowes.
Important Issues It is important to note that as Home Depot has grown so quickly, it has been able to garner significant concessions in prices from suppliers.
However, Home Depot does not have many substitutes. The only problem with sub products and services would be the quality of the product and the lack of people to perform the services.
Another substitute that the Home Depot should be aware of is the purchase of new homes. For the customers they have valuable and helpful services and many stores to help them with there building needs.
More interestingly, Home Depot plans on investing significant amounts of money in their human capital to maintain their consistently high marks in customer service and knowledge of home improvement projects.
Buyers At the time of the case, Home Depot has 3 distinct customer segments. These customers are non-professional consumers interested in doing their own home improvement projects.
The marketing Ps include: Relative Price of Products. Suppliers Home Depot maintains relationships with many suppliers that stock Home Depot stores with over 30, different products.
Their business model is simple. The company runs warehouse-style stores, and they sell a wide assortment of building supplies, home improvement supplies, gardening and lawn care supplies, as well as services such as dumpster and equipment rental. They also deliver products to help you save time.
The Home Depot decided to change their marketing strategy to place a significantly greater emphasis on customer service.
As the have expanded aggressively into new markets, they have seen their operating expenses rise in direct proportion with their growth in revenue. One of the greatest things they have going for the social area is the friendly services that they offer.
Their extensive product lines have made Home Depot the one stop shopping in home improvement. According to ReutersThe Home Depot stores: This is all done with low prices as the primary driver.
Also new entrants will be faced with trying to compete head to head with Lowes and the Home Depot or they will be forced to specialize in a certain product category.
Home Depot and Lowes have very similar product offerings and large warehouse formats. They also changed their advertising tagline to reflect their new vision. They also provide lower prices or they match they price of the competitors to make it more convenient for the customers. Since the beginning, Home Depot has demonstrated its desire to become the largest home improvement retailer in the world.
Other IT projects pose great opportunities to increase efficiency, decrease costs and further increase margins.Financial Analysis of The Home Depot & Lowe's Home Improvement Warehouse Jack Branas History and Summary Home Depot, Inc.
was founded in /5(6). Home Depot vs Lowes Essay Words | 18 Pages. Home Depot vs. Lowe’s Financial Analysis And Comparison AIM Group Members Cenk Tolunay Yan Wang Hong Ma Yuhong Zhang 1) Background The Home Depot The Company was founded in in Atlanta, Georgia and has since become the world's largest home improvement retailer, operating more than 1, stores (Home.
Successful businesses spend years investing in strategic marketing and sales plans. This sample essay explores Home Depot’s strategy and how it affects sales.5/5(1).
Home Depot is one of today's leading home improvement centers, but it still has it's ups and downs. For example the problem that it has deals with the consumers, and not having everything that they need or having higher prices then the competitors. Introduction The home improvement sector of the economy is large with two major players in the industry and with many smaller local and regional.
Home Depot's financial ratios grouped by activity, liquidity, solvency, and profitability. Valuation ratios such as P/E, P/BV, P/S.Download