The Target Customers for Home Depot Company - Case Study Example

The competitive strategy also included the enhancement of the supply chain and the provision of a better online experience for clients, a strategy that is meant to improve customer service and loyalty. The company also focuses on the continued satisfaction of the customer by providing value for money services in the various stores and locations. The final competitive strategy is focused on efficient capital allocation procedures that ensure the continued satisfaction of shareholders and stakeholders in the business, expense control, and maximizing shareholder returns.

The target customers for Home Depot are divided into four main groups for the effective attainment of the company’s strategy. The first group of target customers is Do-it-yourself (DIY) customers (Home Depot, 2010). This means that the company focuses on homeowners who prefer to purchase the company’ products and perform their own installations and configurations for the products. The second group of target customers is Do-it-for-me customers or customers who acquire the company’s products then get a different person to configure, install and complete the projects.

The company works with these groups of target customers by collaborating with independent contractors to perform the services needed by the customers. The last, and probably biggest group of customers, our professional customers, engage the services of The Home Depot for the provision of their needs. This group of customers includes repair people, remodelers, business owners, and a host of other professional customers who seek professional service. The company offers a range of services to these clients, including delivery, installation and configuration services.

The two main business rivals for The Home Depot Company are Lowe’s Companies Inc. and Wolseley Plc, two companies that operate in the same market niche and provide similar services as The Home Depot. The main threat that these two companies pose is the threat of market share capitalization, which refers to the percentage of the market that the company controls. In the consumer market industry, a company has to utilize an effective competitive strategy to ensure that the clients of the company services remain loyal to the company.

Therefore, the threats posed by the main rivals to The Home Depot’s operations include the threat of customer separation and loss of market share. From the data analysis conducted, some conclusions can be deduced, including the market growth of the two companies, the growth prospects, and the investment options available for shareholders. The sales data for the two companies indicate that Home Depot has a better market share than Lowe’s Inc. This conclusion is arrived at after considering the fact that the sales for Home Depot are better compared to the sales for Lowe’s; the sales for Home Depot are more than the sales of Lowe’s for all years of operations.

The net income as a percentage of sales also indicates that the company is better for Home Depot, which indicates that the company utilizes resources better than Lowe’s Inc. Though the debt figures for Home Depot are higher than the debt figures for Lowe’s, the debt-to-equity ratio indicates that Home Depot utilizes the ratio better than Lowe’s Inc. The board of directors for Home Depot is made up of 10 executive directors, individuals with exceptional records of accomplishment in their fields of profession.

The first opinion when the board of directors is analyzed is that the company is committed to excellence because the members of the executive board all seem to be competent members. This is because the ages and qualifications of the board of directors point out the fact that they are experienced individuals who are competent in the running of the company. The strategic objectives of the company also indicate the competency of the board; the decisions made are for the benefit of the company, a fact that indicates that the board is efficient in their operations.

From an analysis of the two companies, the best investment strategy would be to invest in the shares of Home Depot, because of the better performance compared to Lowe’s Inc. This conclusion is based on the analysis of the performance presented in the financial analysis.