Overview: Construction market in US is thriving. Mortgage judge argon continuously falling encouraging the first clip buyers as well as home improvement seekers to acquaint and upgrade (1). This provides ample opportunities for the ironware fabrication to boom. hardware attention consists of companies that manufacture products such as building material, nails, door openers, furniture etc. The hardware industry production includes Wholesale Cooperatives, plaza Centers, and Warehouse stores.
Customers: The market broadly caters to following types of customers:1.Do it yourself (DIY) customers.
2.Small to medium size building contractors.
3.Farmers.
4.House wivesMarket size, market growth rate and number of companies: The hardware Market in North America is dominated by two major players, Home Depot has more therefore 1500 stores all over the world with reported one-year gross gross sales of $71.41 billion for the year 2004. Lowes, Inc. has 850 stores in USA with annual sales of more than $31.17 billion in 2003. The third major player is TruServ Corporation mostly dealing with hardware?s has 6,800 sell outlets and sales of over 2 billions, while Ace Hardware boasts of more then 5100 stores world over. (Appendix 1 and 2. 2 - 5) NRHA estimates that industry sales will grow at an average annual rate of 5.2 percent between 2002 and 2007. (6)Competitive rivalry:Most of the raw(a) materials used in the industry are widely available.
though two players dominate the market players suggesting an oligopoly there are some small sized operators, which bite into the pie of the market share. There are numerous customers of hardware, but the costs are usually a large percentage of the final product?s essential costs. Many users shop around the world for low prices on hardware, which they invariably find due to the competition among the companies.
Industry profitability: Market is profitable with major players gaining significantly. Table No 2...
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