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International Presence
Home Depot has major presence in Canada other United States and has successfully established its business in the country. Before Home Depot Canadian home improvement market was ruled by Rona chain of stores which also has a number of branches all over the country. After penetrating the market Home Depot challenged the position of Rona and now is in cut throat competition with it as Home Depot also has branches in all of the provinces. Lowe is also planning to enter the Canadian market this year adding competition in Canada as well.
Home Depot also attained success in Mexico when it entered the market in 2001. As Home Depot became successful, they kept on opening new stores in the country. Lowe also has plans to enter the market of Mexico by 2009.
Due to the proximity, Home Depot easily attained and managed success in both Canada and Mexico. Home Depot made a big decision and tried to exploit the growing market in China. To enter the Chinese market, Home Depot adopted the strategy of acquiring an already established Chinese home improvement retailer the Home Way. "According to Home Depot, Home Way provided it with the right platform to build a business model that meets the needs of Chinese home improvement customers, while delivering profitable and sustainable growth" ('Home Depot purchases China's Home Way', 2006).
With globalization affecting every business and maekets expanding from particular regions to the whole worls Home depot has eyes set on major European markets and other countries as well.
Marketing Strategy
In order to avail the first movers' advantage Home Depot first adopted the slogan of 'The Home Depot: First in Home Improvement!'. Since Home Depot specializes in customer service they later adopted the slogan of 'You can do it. We can help'. Their advertisements and overall advertising startegy also revolves around the theme that you can do-it-yourself with help from Home Depot staff. Their overall budget is also distributed in a way that they give prime importance to customer service so that service remains its competitive edge. Home Depot has believed in extensive advertisement especially when Lowe started gaining market share. "In...
Home Depot is one of the nation's largest retail advertisers and spends far more on advertising than comparable stores. Home Depot spent nearly eight times as much on advertising in 2002 than its nearest competitor, Lowe" (Lovel, 2003).
A strong publicity strategy has been their sponsorship of Olympic teams in both USA & Canada. Considering the association of Sport and do-it-yourselfers, Home Depot has been actively pursuing the strategy of sponsoring different sports and sportsmen in the United Sates.
The company believes in investing heavily in new product development as an aggressive market strategy. Since the company philosophy is to believe in customer relationship they offer complete solution to their problems as well as different facilities like warranties, rebates and discounts. "The company expects to spend $415 million in 2007 on programs such as loyalty programs, a pro-bid room to handle large customer orders with volume discounts, direct ship programs, credit programs and other specialty sales initiatives" ('Home Depot details strategy for 2007', 2007).
References
Home Depot purchases China's Home Way',(2006). Retrieved on Sunday March 11, 2007 from Website: http://www.retailnet.com/story.cfm?ID=33396
Howard, T. (2002). Home Depot ads get personal. Retrieved on Sunday March 11, 2007 from USA Today Website: http://www.usatoday.com/money/advertising/adtrack/2002-12-08-depot_x.htm
Lowe's'. Retrieved on Sunday March 11, 2007 from Wikipedia Encyclopedia Website: http://en.wikipedia.org/wiki/Lowe's
Home Depot'. Retrieved on Sunday March 11, 2007 from Wikipedia Encyclopedia Website: http://en.wikipedia.org/wiki/Home_Depot
Home Depot details strategy for 2007'. (2007). Retrieved on Sunday March 11, 2007 from Atlanta Business Chronicle Website: http://www.bizjournals.com/atlanta/stories/2007/02/26/daily19.html?from_rss=1
Lovel, J. (2003). Retrieved on Sunday March 11, 2007 from Atlanta Business Chronicle Website: http://atlanta.bizjournals.com/atlanta/stories/2003/04/28/story1.html
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