Running head: HOME DEPOT
Yes. Home Depot should focus on both contractor and DIY segments to reap maximum
benefits. Economies of scale refer to the cost benefits gained by a company when production is
optimal and running costs are lower. The company can spread costs over a large number of
goods, which enables it to attach lower prices to its products. In the home improvements market,
contractor segments and Do It Yourself segments are critical consumer groups that keep the
industry running. The DIY group involves consumers who do not seek professional help to
complete their activities using home improvement products (Redman, 2018). This group has
evolved as it can personalize products and, in turn, gain a great economic advantage. The
contractor segment, on the other hand, involves consumers employing the professional services
of contractors to get their home improvement activities done.
DIY customers are beneficial to Home Depot in many ways. First, these customers are
willing to pay more for quality products. This is because they are investing much time and effort
towards a particular project and want t...
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