How Does The Government Affect Home Depot

Arthur Blank and Bernie Marcus develop the concept for The Home Depot in 1978. “Three Home Depot stores in Atlanta the following year. The 60,000-square-foot warehouses dwarfed the competition with more items than any other hardware store.” (The Home Depot Our History) Home Depot sells a huge assortment of building substances, domestic development merchandise and lawn and garden merchandise and offers a number of services. “Today, Home Depot is the world’s largest domestic improvement retailer with almost 400,000 orange-blooded associates and it operates via approximately 2,278 stores, such as 1,977 inside the U.S.A., inclusive of the Commonwealth of Puerto Rico, the US Virgin Islands, Guam; 182 in Canada; and 119 in Mexico. “Home Depot,

If cuts are made or political actions shift, it can directly affect Home Depot. Incalculable spending by the government can affect Home Depot because they are one segment of their targeted consumer.
Economic Factors: Millennials have been deemed as Home Depot's saving grace. Millennials make up the largest percentage of the population. And if they couldn’t buy houses, it’s a risk to Home Depot’s stability. Growth in disposable income generally results in an opportunity for increased spending.
Social Factors: The middle-class households tend to shun low-quality gadgets, but cannot buy expensive prices. Home Depot ought to assess the wage/earnings gap to sell merchandise in an effort to enchantment to their number one demographic, without alienating a more modern and higher paying client. Expansion choices for the high quality product could provide opportunity.
Technological Factors: Expansion of the automotive process could provide opportunity. Home Depot has constructed rapid deployment facilities. The facilities can provider over 100 stores to distribute new merchandise quicker, which elevates customers waiting a significant time for product

Both Lowe’s and Home Depot have close relationships with their suppliers. As a result, suppliers are often time discouraged from doing business with competing firms – which is a weakness to the supply chain, and hinders business developments and limits one’s market strategies. Home Depot faces the threat of substitutes as a result general merchandiser i.e., Walmart and online retailers availability of home improvement products. Given the fact that the vast majority of Home Depot’s revenues are generated in the American market, the slowdown of the U.S. economy extends a major threat. Based on these facts it is recommended that Home Depot should concentrate on developing a strong competitive advantage by diversifying its business to minimize risk in the home improvement retail market. In addition, it should consider expanding its operations into high-growth markets in developing