Lowe's vs. Home Depot Financial Comparison & Analysis Essay example

4332 Words Aug 3rd, 2010 18 Pages
Home Depot & Lowe’s | Financial Comparison and Analysis | |

INTRODUCTION

Lowe’s (LOW) and Home Depot (HD) are competitors in the every growing market of Home Improvement. The following analysis of each company will examine the home improvement industry, the individual companies, their operating philosophies, their financial strengths or weaknesses, and a final conclusion on which company would be a better long-term investment.

INDUSTRY OVERVIEW

The growing trend of home improvement has perpetuated a larger demand for box store home improvement shops such as Home Depot and Lowe’s. There are several types of companies that contribute to the booming renovation industry. Home Depot and Lowe’s provide all the
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On January 26, 2009 Home Depot announced the planned closing of EXPO, THD Design Center, and Yardbird stores as part of the continued focus on core business (Home Depot, 2008 Annual Report P.1).
The Home Depot mission statement reads as follows: “The Home Depot is in the home improvement business and our goal is to provide the highest level of service, the broadest selection of products and the most competitive prices. We are a values-driven company and our eight values include the following: excellent customer service, taking care of our people, giving back, doing the “right” things, creating shareholder value, respect for all people, entrepreneurial spirit, and building strong relationships.”
Home Depot caters to the three categories of customers. Do-It-Yourself Customers (DIY): These customers are typically home owners who purchase products and complete their own projects and installations. Do-It-For-Me Customers (DIFM): These customers are typically home owners who purchase materials themselves and hire third parties to complete the project or installation, or both. Home Depot arranges for the installation of a variety of The Home Depot products through qualified independent contractors. Professional Customers: These customers are professional remodelers, general contractors, repairmen, small business owners and

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