Swot Analysis Of Home Depot

The Home Depot has a respectable market share in the home improvement retail industry as they hold the number one spot. Their consumer loyalty and brand recognition is responsible for much of the success The Home Depot has experienced. The Morning Consult Brand Index is a tool that indicates brand strength of companies based on U.S. consumers. This strength is determined from the ratio of favorable/unfavorable impressions of the company brand. The Morning Consult Brand index rates The Home Depot as A+. The favorability of the American consumer and their increased spending power is a great advantage for The Home Depot. The quality of the products are favorable and the product life cycle is very mature. The number two market share holder in this industry is Lowe’s. The Home Depot, thanks to their success quarter after quarter, has progressed from the #33 spot on Forbes to #28. The downside to the retail industry is the competitiveness. The customer loyalty can only be so strong when switching costs and alternative are offered at other competitors such as Lowe’s. The Home Depot,

The Home Depot products are existing, so the options are to penetrate the market or develop the market. The depending factors are now reliant on whether the market is new or existing. The market that The Home Depot operates within is existing. The Home Depot market consists of do-it-yourself consumers and professional builders. Currently the majority of The Home Depot’s customer base is made up of the consumers, leaving the professional builder market the target. The support this mode of growth, The Home Depot should focus on internally developing this growth strategy. The major factor affecting the internal growth strategy is the competition. The Home Depot, focusing on market development by use of existing products should seek to expand operations and better penetrate the professional contractor