Home Depot
Executive
Summary
Submitted By:
Usman Riaz
Industry & Company Description
Home Depot is a home improvement and construction company. It has its headquarters located in Georgia, Atlanta. Founded in 1978, Home Depot is the largest home improvement retailer in the United States with 2248 stores. This includes 1976 stores in US and the rest in Canada, Mexico, China, UK, Argentina and
Chile. Home Depot serves three primary customer groups; do-it-yourself (D-I-Y), do-it-for-me (D-I-F-M) and professional customers. The company offers over 300,000 different products. Home Depot operates in the home improvement and construction industry. The industry consists of other competitors like Lowe’s in USA which is the main competitor in term of size. Home depot and Lowe’s together make up only 18% of the total industry and the rest of the market share is distributed amongst big-box retailers such as Walmart and other small chains and businesses.
Home improvement industry is recovering from a slum caused by the housing market collapse of 2008. The revenues of the industry got hit severely as the demand for these goods rock bottomed. But the good news is that the housing market has started a comeback in 2012 and the “Joint center for housing studies of
Harvard University” suggests that the market is on the right path of a recovery.
After several years as a drag in economy, the housing sector contributed positively to the GDP in 2012.
Porter’s Five Forces
Industry Competition
Home Depot sit quite comfortably on the top as the market leader in the industry.
Its closest rival Lowe’s stands far behind. The revenues for the year ending Feb
2013, Home Depot reported revenues of 74,754 Million whereas Lowe’s Revenues were a distant 50,521 Million. Home Depot has a core competency in store locations throughout the country. Besides this advantage the rivalry is very high. There are a lot of small retailers who are competing on prices. The market is
Summary
Submitted By:
Usman Riaz
Industry & Company Description
Home Depot is a home improvement and construction company. It has its headquarters located in Georgia, Atlanta. Founded in 1978, Home Depot is the largest home improvement retailer in the United States with 2248 stores. This includes 1976 stores in US and the rest in Canada, Mexico, China, UK, Argentina and
Chile. Home Depot serves three primary customer groups; do-it-yourself (D-I-Y), do-it-for-me (D-I-F-M) and professional customers. The company offers over 300,000 different products. Home Depot operates in the home improvement and construction industry. The industry consists of other competitors like Lowe’s in USA which is the main competitor in term of size. Home depot and Lowe’s together make up only 18% of the total industry and the rest of the market share is distributed amongst big-box retailers such as Walmart and other small chains and businesses.
Home improvement industry is recovering from a slum caused by the housing market collapse of 2008. The revenues of the industry got hit severely as the demand for these goods rock bottomed. But the good news is that the housing market has started a comeback in 2012 and the “Joint center for housing studies of
Harvard University” suggests that the market is on the right path of a recovery.
After several years as a drag in economy, the housing sector contributed positively to the GDP in 2012.
Porter’s Five Forces
Industry Competition
Home Depot sit quite comfortably on the top as the market leader in the industry.
Its closest rival Lowe’s stands far behind. The revenues for the year ending Feb
2013, Home Depot reported revenues of 74,754 Million whereas Lowe’s Revenues were a distant 50,521 Million. Home Depot has a core competency in store locations throughout the country. Besides this advantage the rivalry is very high. There are a lot of small retailers who are competing on prices. The market is