Background
Home Depot (NASDAQ: HD), is one of the largest principal home improvement retailers, with an estimated 371,000 employees and annual sales of $88 billion. It was founded in 1978 and headquartered in Atlanta, GA. Their products and services target both the do-it-yourself homeowners and professional contractor markets. They have a network of roughly 2,260 big-box stores in three countries that sell a wide assortment of building materials, home improvement products, and lawn and garden products. Also, they provide numerous external services to do-it-for-me customers, installation projects from carpeting, flooring, and cabinets to roofing, windows, and central air systems.
Mission Statement:
Home Depot’s mission statement is “to provide …show more content…
Their virtual shelf space carries over 300,000 products that they sell online. In order to reach their diverse audiences, Home Depot partners with groups such as National Supplier Development Council, the United States Hispanic Chamber of Commerce and the Women’s Business Enterprise National Council (“Supplier Diversity”, 2016).
Pricing Strategy:
Home Depot utilizes the Everyday Low Prices (EDLP) as their consumer pricing philosophy to attract their target both their target audiences. They utilize the Porter Model when it comes to the pricing of the various products they have in their retail stores or online. The Porter Model looks at five dimensions for the development of competitive pricing: competition within the industry, potential new entrants within the industry, power of suppliers, the power of customers, and the threat of substitutes (Porter, 2008).
Home Depot’s Promotional Mix Strategies:
Home Depot utilizes various types of marketing communications strategies to promote their products and services to engage their target audiences. Their promotional mix tactics …show more content…
Each of the competitors is fighting for a share of the do-it-yourself homeowners and professional markets through various pricing strategies and with similar marketing communications strategies to reach the same target audiences.
SWOT Analysis
Strengths:
• Brand Recognition: Home Depot is one of the largest recognizable brands for do-it-yourself homeowners and professional contractor consumers in three countries.
• Product Diversity: Home Depot offer consumers and contractors the largest selection of over 300,000 products with their large network of diverse suppliers. Home Depot’s purchase power allows them to offer numerous products to customers.
• Solid Sales: A bulk of Home Depot’s revenue comes from sales from contractors and professionals that are purchasing their various products in bulk.
• Consistent Stock: The company generates sufficient free cash liquidity, a good portion of which it typically returns to shareholders in the form of dividends, which has been staying around 2% (Reference)
Weakness:
• Weak Internet presence: This makes Home Depot vulnerable to their competitors such as Lowes and Internet-based retailers such as Amazon that allows suppliers to sell direct to consumers with free shipping costs and faster home delivery
Home Depot (NASDAQ: HD), is one of the largest principal home improvement retailers, with an estimated 371,000 employees and annual sales of $88 billion. It was founded in 1978 and headquartered in Atlanta, GA. Their products and services target both the do-it-yourself homeowners and professional contractor markets. They have a network of roughly 2,260 big-box stores in three countries that sell a wide assortment of building materials, home improvement products, and lawn and garden products. Also, they provide numerous external services to do-it-for-me customers, installation projects from carpeting, flooring, and cabinets to roofing, windows, and central air systems.
Mission Statement:
Home Depot’s mission statement is “to provide …show more content…
Their virtual shelf space carries over 300,000 products that they sell online. In order to reach their diverse audiences, Home Depot partners with groups such as National Supplier Development Council, the United States Hispanic Chamber of Commerce and the Women’s Business Enterprise National Council (“Supplier Diversity”, 2016).
Pricing Strategy:
Home Depot utilizes the Everyday Low Prices (EDLP) as their consumer pricing philosophy to attract their target both their target audiences. They utilize the Porter Model when it comes to the pricing of the various products they have in their retail stores or online. The Porter Model looks at five dimensions for the development of competitive pricing: competition within the industry, potential new entrants within the industry, power of suppliers, the power of customers, and the threat of substitutes (Porter, 2008).
Home Depot’s Promotional Mix Strategies:
Home Depot utilizes various types of marketing communications strategies to promote their products and services to engage their target audiences. Their promotional mix tactics …show more content…
Each of the competitors is fighting for a share of the do-it-yourself homeowners and professional markets through various pricing strategies and with similar marketing communications strategies to reach the same target audiences.
SWOT Analysis
Strengths:
• Brand Recognition: Home Depot is one of the largest recognizable brands for do-it-yourself homeowners and professional contractor consumers in three countries.
• Product Diversity: Home Depot offer consumers and contractors the largest selection of over 300,000 products with their large network of diverse suppliers. Home Depot’s purchase power allows them to offer numerous products to customers.
• Solid Sales: A bulk of Home Depot’s revenue comes from sales from contractors and professionals that are purchasing their various products in bulk.
• Consistent Stock: The company generates sufficient free cash liquidity, a good portion of which it typically returns to shareholders in the form of dividends, which has been staying around 2% (Reference)
Weakness:
• Weak Internet presence: This makes Home Depot vulnerable to their competitors such as Lowes and Internet-based retailers such as Amazon that allows suppliers to sell direct to consumers with free shipping costs and faster home delivery