Case Analysis of Home Depot Vs Lowe’s
Case Analysis of Home Depot Vs Lowe’s
Home Depot and Lowe’s are two different home improvement companies. Like all organizations they each have their strengths, weaknesses, opportunities, and threats. First, Home Depot mission statement is to form mutually beneficial partnerships with diverse businesses that allow them to deliver superior products and services and superb customer service, which ultimately increase shareholder value. And Lowe's Vision “is to be our Customers' first choice for home improvement in each and every market we serve. To earn our Customers' trust and meet their individual needs, we will provide valued solutions with the best prices, products and services that make our Customers' lives easier”.
For instance, strengths are determined in the following ways. Perhaps the greatest strength Home Depot retains is their ability to supply good service and produce quality expertise in the home improvement industry. Home Depot has the ability to hire expert personnel to provide professional knowledge in the home improvement industry. Along with growth and effectiveness, Home Depot has a large portion of the market share. Home Depot has stores in Canada and South America. Due to a large market share, Home Depot gains other incentives such as: the ability to be a low cost provider of products and services, and the capability to take advantage of economies of scale. Another strength Home Depot has is that it possesses a strong financial position. A solid financial condition provides Home Depot to grow faster and more efficient than its competitors. Ultimately, all these strengths are major factors that have contributed to building customer loyalty.
On the other hand, Lowe’s strengths consist of being the second largest retailer of home improvement products in the United States. In addition, Lowe’s also provides a wide range of products at a slightly discounted price. Lowe’s also carries the name of designers is their paint brands like Laura Ashley and Olympic brand. Ultimately Lowe’s is expanding rapidly by continuing growth of twenty percent new store openings per year.
As any organization both have weaknesses as well. For example, Home Depot weakness is reflected in their marketing skills. They do not have a lot of advertisement on TV and radio.
On the other hand Lowe’s weakness consists of not having as many stores as Home Depot, therefore their retail base is not as strong. Also Due to the fact that international business has grown so much, Lowe’s has not expanded internationally, and this is a big weakness as well.
Following will be the opportunities these two organizations could encounter. Home Depot has the ability to operate more aggressively than their competition. For example, Home Depot might consider exploring new markets and diversify into new segments, such as, home furnishing, small/large household appliances, electronics (televisions, VCR’s, DVD’s), and the computer industry. If Home Depot ignores marketing its products and services, their competitors will gain a large advantage in the industry. I would advise Home Depot to advertise on radios and televisions on a regular basis, and provide rewards and [next page]