Home Depot vs. Lowes Essay

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Home Depot vs. Lowes The Home Depot Company Introduction Home Depot company offer a wide range of merchandise and services, and serve three primary customer groups: do-it-yourself customers, do-it-for-me customers and professional customers. A classic Home Depot store stocks approximately 40,000 to 50,000 product items, including variations in color and size. Major product groups include building materials, lumber plumbing, electrical and kitchen; hardware and seasonal, and paint, flooring and wall coverings. To balance the national brand name products it offers, the Company has formed strategic associations with vendor partners to market products under brand names that are only offered through The Home Depot. “As of fiscal…show more content…
Home Depot's company stated vision is described in the case as "to be one of the most successful retailers in the next millennium" which is further defined by Home Depot's management as "the most successful retailers... will be those, among other things, can effectively profitability extend their reach to global markets". ("The Home Depot", 2004) Management at Home Depot also states that they plan to take the existing success in areas where they have a base business and use this base to expand into other markets. Strategy, Products and Market Overview I believe that Home Depot has done an excellent job at reaching its goals in the past ten years. They have been able to expand their market by aggressively opening several store locations and using a clustering strategy. In doing this they have become a market leader and they have also been able to keep their SG&A expenses down by eliminating redundant expenses by spreading them out between stores close in proximity to each other. Home Depot is facing a few problems in order to continue reaching its stated goal(s) of becoming a global leader and expanding their existing market. There are a few established business that are in direct competition with Home Depot such as Lowe's, their number one competitor, and other companies such as Eagle Hardware & Garden of Seattle, who has been preparing for the intense competition

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