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[Student’s Name] [Instructor’s Name] [Course Name] [Date] 3.3 – Task Environment 3.3.1 – Threat Of New Entrants Threat of new entrants in the industry is low. Home Depot has an advantage over new entrants in this industry as it has maintained its brand name, a wide range of products and has established customer’s loyalty in the industry (Harrison and John).
Home 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 anticipate 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 customer. For the new 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 cost advantage in the industry (Harrison and John). The pricing offered by the company is low cost pricing which makes the competition tough in the in the industry. Home Depot has maintained an exclusive control on the costing by developing strong relations with its exclusive sellers and suppliers. One of the major advantages Home Depot experience is the brand image, as customers are more inclined to approach companies having strong brand names (Harrison and John). Home Depot has served over years, it is known as for the best quality and service provider in the industry. ...
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