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Strength and competitive advantages of home depot
Strength and competitive advantages of home depot
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Home Depot
STRENGTHS
- Strong market position
- Higher returns than competitors
- Balanced brand mix
- WEAKNESSES
Sub optimal capital structure
- Product recall
OPPORTUNITIES
- International presence
- Growing popularity of power tools
- Increasing online sales
THREATS
- Intense competition
- Slowdown in US housing market
- Rising labor wages in the US
|The Home Depot Inc. (HD) |
|Business |The Home Depot, Inc. is the world's largest home improvement retailer. The company incorporated in 1978 in |
| |Delaware and is headquartered in Atlanta, GA. The Home Deport sells improvement products, building materials |
| |and lawn and garden products as well as provides related services through retail stores. As of the end of |
| |fiscal 2007, there were 2,193 The Home Depot stores located throughout the U.S. (including the territories of |
| |Puerto Rico, the Virgin Islands and Guam), Canada, China and Mexico. The company also operated 34 EXPO Design |
| |Center stores, two THD Design Center stores and five Yardbirds stores. The Home Depot stores average 105,000 |
| |square feet of enclosed space, with 23,000 additional square feet of outside garden area. The Home Depot |
| |stores serve three primary customer groups: do-it-yourself customers who are completing projects themselves, |
Currently, the company owns and operates stores in 45 states. As of June 2014, Charlotte Russe operates 560 stores. Those 560 stores can be found in local malls/shopping
In the early 2000’s Lowe’s was rapidly intensifying its presence nationwide. The company carried a varied assortment of home improvement products and catered to the needs of retail as well as commercial business customers. Lowe’s expanded their reach by acquiring a 41-store chain, Eagle Hardware and Garden, and engaging in a strategic alliance with HGTV to obtain a more profound existence in their market (Rouse, 2005). By 2004, Lowe’s operated almost 1,000 stores with plans to continue expansion across the nation (Rouse, 2005). The company has a core competency in helping customers meet their home improvement needs at a low price. In order to use this core competency to gain a competitive advantage, the company has focused on key functional strategies. To continue their success, Lowe’s must specifically focus on marketing, logistics, and human resource management strategies.
(The retail industry main aspect includes small stores that sell products directly to consumers. Mike took over the lease of a building and wanted to transform it into a fully functional department store that offered a variety of products.)
This will help them in achieving maximum sales. The company’s marketing team should first collect information regarding the income level of customers who live in the vicinity of the potential store location. They should determine income of the area’s population in order to make sure that it matches that of their typical customers. They should also take a look at education level as well occupational information for the area in question.
b. They meet the needs of their target market by building their stores in closer proximity.
Target is the second largest "general merchandise" retailer (behind Wal-Mart); selling almost anything one would need to complete the "one stop shop", especially with the addition of the SuperTarget stores. The first Target opened in Roseville, Minnesota in 1962. Since then, 1,330 stores located in forty-seven different states, which includes the 141 SuperTarget stores, have opened nationwide. Target also has twenty-two distribution centers located in nineteen states. In addition to the vast number of store locations, Target also has other businesses that include: Target.com, Target Financial Services, Associated Merchandising Corporation, and Target commercial Interiors.
“Sears is the leading retailer in home appliance, tools, lawn and garden, electronics, and automotive repair and maintenance. They are also the largest home service provider and answers over 11 million service c...
Plug-in urban design is a category which usually focuses on the strategic building of infrastructure components in a city. Through the design, new infrastructure elements can be plugged into existing built-up areas in order to bind them into a unit and boost their amenity level. For instance, some streets, footpaths, city parks, exhibition grounds, or even mass transportation lines, can be added to the open space between the existing buildings. This design, thus, can be treated as an incentive for individual owner-builders or property developers to invest in new buildings. The cost of the new elements may be borne by the overall public or private project developer, as represented in the master layout plan for a site or by the developers of individual buildings.
Home Depot reached the number one spot in home improvement centers the world over in 2001 (Bianchi, 2006, section 1, para1). In 2002 their net sales reached $58.2 billion (Bianchi, 2006, section 2, para1). There were more than 1500 Home Depot stores within the United States, Canada, and Mexico at the end of 2003. In 1994 Canada became the first foreign country in which Home Depot expanded...
Another thing to consider is a statement made on CNNmoney.com in regards to Dollar Generals consistent store growth that they are only "cannibalizing sales at their other stores and eroding their profits"
Home Depot was founded in 1978 by Bernie Marcus and Arthur Blank in Atlanta, Georgia. With their store, Marcus and Blank revolutionized the do-it-yourself home improvement market in the United States. Home Depot began as a very basic store, operated in a large, no-frills warehouse. Home Depot carries over 35,000 products, with national brand names along with the Home Depot brand. At the start, Home Depot was able to offer exceptional customer service with knowledgeable employees who could guide customers through home renovation projects. Since its opening, Home Depot has experienced incredible growth, and today is North America's second largest retailer, and the largest home improvement retailer. Internationally, Home Depot has expanded into Canada, Mexico, and is beginning to operate stores in China. Home Depot's competition includes Sears, Ace Hardware and Lowes (the main competitor).
Ron Johnson spent a great deal of time and money to promote his ideas of “stores-within-stores” by turning floor space into an area to house several branded boutiques. He did this in order to attract a target market of a wider demographic which includes age, gender, and generation. One of the m...
specialty cakes, desserts and breads they make. Publix follows similar protocol in all of their
Managers associated with shopping areas like the Springdale shopping area gain useful insight through point estimates regarding a number of variables describing the characteristics and behaviors of their customer base. Being able to have confidence in survey results In addition, it is helpful for them to have some idea as to the likely accuracy of these estimates. The results of surveys may be used to enhance store layout, development of employee skills, and influence purchasing habits.
What attracts customers: Customers are attracted to Orchard Supply Hardware La Crescenta for many different reasons. Most notably, OSH is the only close hardware store location to many people living in the area. The resident’s other choices consist of Lowe’s in Burbank (about a twenty minute drive) and Home Depot in Glendale (about fifteen minutes away). The Home Depot location in Glendale is lesser known and tends to carry a smaller selection of items so many residents actually choose the Burbank location of this company over the Glendale location. Orchard Supply Hardware also attracts customers because of its legendary customer service. As many of the employees are locals or transfers from other OSH locations, customers can recognize, relate to, and connec...