• Market risk - fluctuations in interest rates, foreign currency exchange rates, and equity prices.
3. Technological Forces.
Opportunities:.
• The emergence of the Internet as a marketing and purchasing tool for a competitive advantage.
• MIS technology (POS, EDI, and EAS systems) can be used to increase efficiency and control by increasing information flow creating competitive advantage. .
• POS technology allows stores to Identify consumer buying trends early.
Threats:.
• Competitors using the Internet as a competitive advantage.
• Competitors using MIS technology (POS, EDI, and EAS systems) to increase efficiency and control by increasing Information flow.
A. Task Environment.
Opportunities:.
• Broadly target DIY, BIY, professional, and heavy industry sectors and overwhelm focused competitors in DIY sector.
• Use of clustering strategy created strategic advantage by raising the barrier of entry to competitors.
• Large sales volume allows Home Depot to force concessions from suppliers and hold them to shipping dates.
• Company sources its merchandise from approximately 5,700 venders worldwide, and no vender accounted for more than 5% of total purchases.
• Learning curve for efficiently managing 100,000 sq. foot store increases barriers to entry.
• Professional contractors: market opportunities for the company total approximately $215 billion.
• DIY spent approximately $100 billion in home improvement products in 1997 up more than 6%.
• Do It Yourselfers were getting larger in number and more confident and capable to take on home improvement projects.
• Use of the Internet as a core-marketing tool.
Threats:.
• Loews imitation of focused strategy.
• By Broadly Targeting DIY, BIY, Professional, and Heavy Industry Sectors Home depot may find itself stuck in the middle with no competitive advantage.
