The Home Depot, Inc. Market Trends
The economy is the main topic of discussion between neighbors, classmates, the mass media, and the President. Unfortunately, all that is discussed are the negative notes of how much money one lost in the stock market, how homes no longer have the equity it once had, and how some lost a home because of having the current status of consulting and being in between jobs. Because Home Depot is the leading supplier of home improvement building materials and related tools and supplies, the economy has greatly affected the company's revenue and generating lower profits. However, a close watch on market trends will help the company foresee challenges or issues the company might encounter so steps for a successful short-term and long-term goals will be reached.
During the initial stages, Home Depot dominated the do-it-yourself, home improvement market. Although Home Depot entered the oligopoly where there were existing companies that offered home improvement remedies, such as Wal-Mart, K Mart and Orchard Supply Hardware, none of the competitors offered do-it-yourself remedies at such a large scale. With Home Depot's number one contender being Lowe's, offering comparable prices with the same do-it-yourself warehouse environment, Home Depot is still in the lead as the largest home improvement retailer in the US.
The price elasticity of demand is extremely important to any business, especially to a retail company such as The Home Depot. Determining how changing the price on specific products will affect the demand is crucial, especially in the current economy. Due to the amount of retail competitors and the recent decrease in consumer confidence, we determined that The Home Depot supplies thousands of elastic products. Increasing the price on items such as appliances, building materials, fixtures, and flooring would decrease the demand.
Production of technology and/or any equipment that may facilitate a project or job has been a part of the marketing for The Home Depot. Now
During the initial stages, Home Depot dominated the do-it-yourself, home improvement market. Although Home Depot entered the oligopoly where there were existing companies that offered home improvement remedies, such as Wal-Mart, K Mart and Orchard Supply Hardware, none of the competitors offered do-it-yourself remedies at such a large scale. With Home Depot's number one contender being Lowe's, offering comparable prices with the same do-it-yourself warehouse environment, Home Depot is still in the lead as the largest home improvement retailer in the US.
The price elasticity of demand is extremely important to any business, especially to a retail company such as The Home Depot. Determining how changing the price on specific products will affect the demand is crucial, especially in the current economy. Due to the amount of retail competitors and the recent decrease in consumer confidence, we determined that The Home Depot supplies thousands of elastic products. Increasing the price on items such as appliances, building materials, fixtures, and flooring would decrease the demand.
Production of technology and/or any equipment that may facilitate a project or job has been a part of the marketing for The Home Depot. Now
References: olander, D. C. (2008). Economics (7th ed). New York: McGraw-Hill Irwin. Economagic. (2009). Most requested series. Retrieved April 6, 2009, from Economagic Web site: http://www.economagic.comThe Home Depot, Inc. (2009). Investor relations: News release. Retrieved April 6, 2009,from http://www.ir.homedepot.comNovy, D. (2009, January 26). Retail Roundup: Wasson Named Walgreens CEO, Home Depot Slashing 7,000 Jobs, More. Retrieved April 6, 2009, from BNET Web site: http://industry.bnet.comUniversity of Aberdeen. (2009). EDNET. Retrieved on April 8, 2009 from http://tutor2u.net