swot paper home depot - Opportunities There are huge...

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Opportunities There are huge economic opportunities for the Home Depot, and that is high interest rates on home mortgages which are right around 6% to 6.5%. Because of such rates, building homes has been declining over the past years. Building homes declined from 1.45 million new homes in 1994 to 1.3 million in 1995; housing starts remained at just under 1.3 million for both 1996 and 1997 (Lee, 1997). People are holding off building and buying new homes and are instead remodeling their current homes or buying older homes that are not quite as expensive and remodeling these. Between 1993 and 1996, the number of homeowners increased just 5.5%, which pushed the national homeownership rate from 64.1% TO 65.1% (Bossong-Martines, Eileen M.1998) Home Depots sales come from the home owners doing projects themselves. The next opportunity is for Home Depot to take advantage of niche marketing. Home Depot has already expanded into the professional market with Maintenance Warehouse, the upper- class market with EXPO Design Centers, and rural markets with the discontinued Crossroads chain. However, other markets, such as the lower class, still offer expansion opportunities (Wheelen, et al, 2000). The last economic opportunity is the release of the new classification system.
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This note was uploaded on 04/27/2010 for the course MBA 128798 taught by Professor Jenings during the Spring '10 term at University of South Pacific.

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swot paper home depot - Opportunities There are huge...

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