Home Depot Essay Example | Topics and Well Written Essays - 2250 words

Home transshipment center - Essay ExampleHome Depot operates with contracts, establishes credits with the bank, which provides it opportunities to work effectively in the long run (Magretta). In home improvement industry, it is prior for companies to telephone with the changing market trends and knowledge (Harrison and John). Home Depot is effective to anticipate with the changing trends in the market and retains their client. For the bracing entrant lack of knowledge and experience in the field makes it difficult to maintain its supply chains and customer retention. In addition Home Depot has maintained an absolute greet advantage in the industry (Harrison and John). The pricing offered by the company is low toll pricing which makes the competition tough in the in the industry. Home Depot has maintained an exclusive control on the costing by developing backbreaking relations with its exclusive sellers and suppliers. One of the major advantages Home Depot experience is the gi ve away image, as customers are more inclined to approach companies having strong smear names (Harrison and John). Home Depot has served over years, it is known as for the best quality and service provider in the industry. This eventually declines the dilemma for the existing companies wish Home Depot and Lowies from the new entrants. Constantly, it can be concluded that Home Depot has an edge in the market and has restrained others from entering as new threats. 3.3.2 Bargaining Power of Suppliers The talk terms power of suppliers in the home improvement industry is a low force. Home Depots expense controls and cost initiatives are its core competencies. Prominent companies in the industry like Home Depot and Lowes are dependent on well recognized brand name suppliers (Harrison and John). These firms maintain strategic alliances and exclusive relationship with certain suppliers they maintain their market image in the industry, which eventually secures the bargaining power of sup pliers. Home Depot maintains exclusive relationship with its suppliers, as it is depend upon products that are well recognized and brand suppliers. This is because of the reason that if these firms are unable to maintain strong relationship with its suppliers the whitethorn lose their product variety and quality (Harrison and John). Furthermore Home Depot eliminates the reliance upon third parties and middle man this is because of the reason that if these third parties run into fiscal or regulatory difficulties it may caste negative impacts on the company in the industry (Harrison and John). Therefore, home depot has centralized its purchases operations through devising direct purchases (Harrison and John). The online centers of the company aid company to minimize the control of suppliers. Home Depot also maintains websites to maintain and to strengthening the relationship with its suppliers, these measures limits suppliers bargaining power to a low force. 3.3.3 Threat Of Substitu te Products or Services The threat of replacing in the home retailing industry is relatively low, because the substitution for the home product like hammers, nails, and paint etc. can be the similar products bought within the industry which are also sold by the identical vendors (Harrison and John). It is true that the demand of products, their supplies and prices are interrelated in a market, which