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Unformatted text preview: when Lowes entered the Dallas market and the new opening will only increase their fixed and variable costs. Macro economic conditions might also prevent Home Depot from achieving their performance assumptions. With the expectation of some slowing economy, as the case mentioned, the Home Improvement research Institute projected the average nominal growth in the industry of about 4.5% a year over the next several years. Up until 2000, Home depot has benefited of from low interest rates, strong housing turnover, rising home ownership and an increase in discretionary income throughout the nation. The fact remains that no one can really have a full grasp of the economy as it fluctuate so often, but if people happen to lose their jobs, or home, or if a the economy experience a down turn in the real estate market as it has happened recently , the need for home improvement will be surely fall....
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This note was uploaded on 04/29/2010 for the course MBA 545 taught by Professor Debraco during the Spring '10 term at American University in Bulgaria.
- Spring '10