Home Depot Case
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According to an item published online on the Yahoo!Finance website, The Home Depot Incorporated was founded in 1978 and is based in Atlanta, Georgia. It operates as a home improvement retailer primarily in the United States, Canada, and Mexico. The company's stores offer building materials, home improvement supplies and lawn and garden products that are sold to do-it-yourself (DIY) customers, home improvement contractors, tradespeople and building maintenance professionals. The company also operates EXPO Design Center stores that provide products and services primarily related to design and renovation projects. In February of 2008, it operated 2,234 stores, including 1,950 The Home Depot stores, 34 EXPO stores, 5 Yardbirds stores, and 2 THD Design Center stores in the United States, in addition to 165, 66, and 12 stores in Canada, Mexico, and China respectively. Its key competitors include Lowe's Companies, Inc., Menard, Inc., and True Value Company (The Home Depot, Inc.). According to the company's most recent Form 10-K filing with the U.S. Securities and Exchange Commission, some of the stakeholders of The Home Depot include the company's 331,000 employees, of whom approximately 26,000 are salaried with the remainder being paid on an hourly basis. To remain successful, The Home Depot must attract, train and retain a large number of highly qualified associates while controlling labor costs. Another group of stakeholders would be the company's shareholders. Ac
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me improvement would almost certainly find it difficult to compete directly with Home Depot or its most serious competitor, Lowe's Companies Incorporated. Among other problems, a new entrant would face a vast difference in economies of scale. These differences would be difficult for any new entrant to overcome. Therefore, the threat of new entrants is low.
Bargaining Power of Customers: By having such a wide array of products and services, Home Depot is able to minimize customer bargaining power. Also, no single DIY consumer purchases enough from The Home Depot to be capable of influencing the company's product selection and pricing strategies. Therefore, the bargaining power of customers is low.
Bargaining Power of Suppliers: The term supplier power refers to their relative bargaining power relative to the buyer. As a buyer, Home Depot maintains relationships with more than 5,000 suppliers that provide Home Depot stores with over 30,000 different products. Each individual supplier has very little to no bargaining power. As a result, Home Depot is able to force suppliers to offer price and volume discounts and other concessions based on its purchasing power and its status as the largest company in the DIY retai
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Approximate Word count = 1547
Approximate Pages = 6 (250 words per page)
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