Home Depot case study for Strategic management for mba class

Home Depot for Strategic management for mba class - Case Study ExampleSwitching costs were low in this application and this situation assisted consumers to change their retailers easily. In addition, the intentness faced threat of substitutes because many products had close substitutes available. In 2006, buyers talk terms power was high as they had distinct market options and good understanding of various tell on choices. In contrast, supplier power was low as majority of the retail players received suppliers from a gigantic number of distinct vendors. Need of high initial capital investment eliminated the threat of new entrants to some extent at that time. The home improvement industry underwent tremendous changes over the next six divisions. Degree of rivalry got intensified because the price factor became paramount. As compared to 2006, threat of substitutes became higher in 2011 mainly because of the entry and development of improved substitute products. By 2011, the ind ustry adapted to a competitive pricing strategy and this situation added further value to buyer bargaining power. Naturally, suppliers were also forced to provide material to retailers at minimum cost hence, supplier power further declined in 2011. Similarly, threat of new entrants also reduced to a considerable extent because new entrants found it difficult to confront with huge players like Wal-Mart.2. While analyzing the market environment of the Home Depot for the year 2006, brand awareness seems to be the most competitive strength of the company. The Home Depot was the worlds largest home improvement retailer during that time, and this dominance boosted its brand awareness. Increased utilization of rapid deployment centers also added to the strength of the company as this strategy contributed to the efficient supply chain operations. In addition, the organizations naive and distinct business model has entirely changed the way consumers shop home improvement