Home Depot Financial Analysis

Company Industry

The companies include Menard, Lowes and Home Depot. Also some independently owned stores belong to wholesale cooperatives, such as Ace Hardware and True The building material dealers industry includes more than 40,000 companies with in the US, with about $230 billion year. Value Company, those buy materials in bulk and resell them to members. The industry is concentrated the top 50 companies account for more than 50 percent of industry revenue. The industry includes some home centers and hardware stores, paint and wallpaper stores, which are covered in separate industry profiles, as well as specialized building material retailers. (Trans World News)

As for products, major products are lumber and other structural building materials and supplies and hardware, tools, plumbing and electrical supplies. Other products include paint, wallpaper, lawn, garden, farm equipment and supplies, floor covering, and products to do -it -yourself, do-it-for-me and professional customers. In addition to selling products, some company such as Lowe’s and Home Depot also offers installation services for do-it-yourself customers. The installation program include product, such as carpeting, flooring, cabinets, countertops and water heater. In addition, it provides installation services for products sold through its in-home sales program, including roofing and siding products, windows, furnaces, and central air systems. They serve home owners, professional remodelers, general contractors, repairmen, small business owners, and tradesmen. Furthermore, the company helps guiding customers through projects such as laying tile, changing a fill valve or handling a power tool.

Demand is mainly by resident real estate construction and renovation. The profitability of individual companies depends on merchandising and customer service. Large companies enjoy economies of scale in purchasing and have the ability to offer more products. Small companies can compete...