Home depot company analysis
Home depot has invested in continuous research and development to capture the market dynamics by taking into consideration the changing tastes of clients. This ensures that they are not overtaken by time and disadvantaged by the competitors. The housing industry has gained much market size but requires substantial capital input. On this regard, the firm has been recruiting high skilled manpower that delivers high quality services and this attracts significant number of customers relative to other companies. Its policy on high quality low cost production is reflected on reduced prices and this gives it a competitive advantage. The increasing investment in technology by Home depot has kept relevant in the shift to digital world and e-commerce and this offers a level ground for it to compete in the industry (Palepu 703).
The effect of globalization has redefined people’s tastes and preferences in the diverse product market. It is therefore imperative that firms engage in more research to capture the emerging trend in changing attitude and possible omissions by the company. Home depot is particularly operating in an industry that is increasingly changing to fit the dynamic socio-economic and political aspects of the society. The increasing cost of production has necessitated the firm to explore low cost production strategy to translate this to fair prices as a feasible competitive measure (Oyelaran-Oyeyinka, et al 54).
Home depot has a wide geographical market cover and this prompts it do design a market mix that serves the diverse cultural characteristics of its customers. There is e-marketing in most of its markets and use of electronic media with the local language. This gives it a local appeal and an international face. There has been an intensive sales promotion in its different markets which seeks to stamp its authority and attract unexploited market segments (Hirschey 576). Home depot remains one of the largest house improvement retailer and is committed to boost the living standard of it clients.
Hirschey, Mark. Fundamentals of Managerial Economics. Mason, OH: South-Western/Cengage Learning, 2009. Print.
Oyelaran-Oyeyinka, Oyebanji, and Rajah Rasiah. Uneven Paths of Development: Innovation and Learning in Asia and Africa. Cheltenham, UK: Edward Elgar, 2009. Internet resource.
Palepu, Krishna G. Business Analysis and Valuation: Ifrs Edition, Text and Cases. London: Thomson Learning, 2007. Print.