Home Depot Business Model
What Does Home Depot offer?
The Home Depot, Inc. is the world’s largest home improvement retailer based on net sales for fiscal 2018. The company offers their customers a wide assortment of building materials, home improvement products, lawn and garden products, and décor products and provide a number of services, including home improvement installation services and tool and equipment rental.As of the end of fiscal 2018, they had 2,287 The Home Depot stores located throughout the U.S. (including the Commonwealth of Puerto Rico and the territories of the U.S. Virgin Islands and Guam), Canada, and Mexico.
2 Primary Customer Groups:DIY Customers:
These customers are typically home owners who purchase products and complete their own projects and installations. The associates assist these customers both in stores and through online resources and other media designed to provide product and project knowledge. The company also offer a variety of clinics and workshops both to share knowledge and build an emotional connection with the DIY customers.Professional Customers (or “Pros”):
These customers are primarily professional renovators/remodelers, general contractors, handymen, property managers, building service contractors and specialty tradesmen, such as electricians, plumbers and painters. These customers build, renovate, remodel, repair and maintain residential properties, multifamily properties, hospitality properties and commercial facilities, including education facilities, healthcare facilities, government buildings and office buildings.
What Are The Alternatives?
Major competitors are companies like Lowe's and other home improvement stores.
What Is The Basis of Competition?
The competition is primarily based on customer experience, price, quality, availability, product assortment, and delivery options. It is also based on store location and appearance as well as presentation of merchandise. Further, online and multichannel retailers are increasingly focusing on delivery services, with customers seeking faster, guaranteed delivery times and low-price or free shipping.
DISAGREE WITH OUR FORECASTS? CREATE YOUR OWN
1. How to save your forecasts:
Click on the blue "Try Trefis" button in the header to create an account, then navigate back to this dashboard. Now, any changes you make to these inputs will be auto-saved as a scenario (see left panel of dashboard).
2. How to monitor your scenario vs. actual results
Once you've saved your forecast, you can "rename" your scenario by clicking on the gear icon next to the scenario (on the left panel). For more info, see this quick, 30-sec video (look at the 9 sec mark)
With your forecast saved and named, you can see how well you forecast the company's performance at the end of each period and compare your forecasts to hundreds of other Trefis users who came up with their own forecasts. Lastly, you can share with friends and colleagues to show them how you fared and compare your forecasts to theirs.