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Essay / Home Plus Case Study - 732
By changing the Home Plus product offering, the organization now has the opportunity to enter new markets. As a result, the organization will attract new customers who prefer the high quality and cost of the products it will offer. Additionally, Home Plus will have the opportunity to increase its profits by increasing its margins. Home Plus will now have excess revenue to reinvest in itself. Managers can use these funds to build new stores, purchase a wider variety of merchandise, and provide better service to customers. Finally, Home Plus will have the opportunity to diversify its product. Although it is cutting discount products in half, management intends to double the high-end product the store carries.