Saturday, July 27, 2019
Introduction to business Essay Example | Topics and Well Written Essays - 500 words
Introduction to business - Essay Example The US retail industry is about $4.13 trillion. Discussion Competition in the Home Improvement Market Ã¢â¬â both LoweÃ¢â¬â¢s and Home Depot are in effect after the same segment of customers. These are the people who undertake renovations, repairs or major upgrades on their homes. Three likely sources of revenue growth for a retail chain are the following: opening new stores, increase sales revenue per store and expand item offerings. The current recession has ruled out implementing any of these three options and so it is quite understandable that the competition gets tougher with the same set and number of customers. The difficult financial conditions has likewise slowed the demand for items being offered at both stores although they price their products practically the same. More importantly, demand for D-I-Y (do it yourself) home products are waning due to the recession. People are concerned with the values of their home during difficult times and will naturally tend to postpo ne discretionary spending (Quinn, 2009, p. 1). Home renovations, repairs and expansion are generally optional expenses and can be postponed when necessary.