Third-Degree Price Discrimination At Lowe's Home Improvement Stores

ROA is considered the best overall indicator of the efficiency of assets used in a company. Home Depot and Lowe’s ROA ratio both moved down due to the downturn in the industry but Home Depot was able to improve 2010.

Lowe’s Companies, Inc. is the fourteenth largest retailer in America, and overall the world’s second largest home improvement retailer. They are the 108th ranked corporation on the Fortune 500 top corporations list. With an impressive in store stock of 40,000 home improvement items on hand, ranging from lumber to Home décor items, plus an additional 400,000 home improvement items available through a special order program. Lowe’s provides a onetime stop for all home improvement needs, for both the Do-It-Yourselfer, and the ever-expanding market of the Commercial Business Customer.

Lowe’s Companies, Inc., is a $26.5 billion company that employs 122,000 people. It is the world’s second largest home improvement retailer and the 14th largest retailer in the United States as well as the 30th worldwide. Lowe’s owns 854 stores in 44 states and serves eight million do-it-yourself and commercial customers weekly. Headquartered in Wilkesboro, N.C., Lowe’s has been in business for 57 years and publicly held for 41 with stock listed on the New York Stock Exchange under the symbol LOW. The company offers products and services in home improvement, home décor, home maintenance, home repair and remodeling and lawn and garden.

Lowe’s mission statement is “Home. For over 50 years, it’s what Lowe’s had been about”. They have stayed the course, from helping people in the stores to helping people in the community. They continue proving they stay true to their vision statement by teaching people how to do their own home improvement projects. As well as supplying them with quality products to make the improvements. The mission statement holds true as well. Not only do they create opportunities for customers to make a home but they also work with the community to build homes for the homeless. Lowe’s will continue to grow and prosper, because they have great customer service, as well as phenomenal community

My first choice for a company that would succeed today with globalization is Lowes Home Improvement. My main reason for this company is because what it supplies is needed anywhere in the world. Lowes not only supplies major appliances such as stoves and microwave but also offers installation on these items. They offer many home improvement needs such as windows, doors, siding, and all types of wood to build with. No matter where you go, these items are needed for your homes and businesses. This allows Lowes to be profitable in any market. It creates jobs, which helps local economies. It also brings other companies to these other countries. Companies such as General Electric and Anderson windows can become global companies with them.

The contemporary period is usually thought to have started around the 1940’s, after the end of World War Two. The experience of WWII changed the way that people around the globe live and think as many had begun to lead prosperous lives however the contemporary stories of the time would attempt to highlight the harsh realities that lied under the surface and were are still apparent in everyday life. An example of a contemporary author that writes about the luxuries of life while simultaneously relating his common experiences to the horrific tragedies of war was in Brian Turner’s “At Lowes Home Improvement Center.” Contemporary writing usually takes place in a realistic setting in the same time frame that the author is writing in such as in

Very recently an act of price discrimination against men erupted in the Soho district of New York. The pharmacy wanted to charge all men that

Home Depot was one of the largest home improvement retailers of America with over 2248 stores worldwide. It was founded by Bernie Marcus and Arthur Blank in 1978. Home Depot is headquartered in Atlanta, Georgia. For two decades after its inception the company experienced rapid growth. But in the early 2000s the company performance slowed down and Bob Nardelli was named the new CEO. Earlier the company followed a decentralized organizational structure and that worked well until 2000.

Amazon can use 3rd degree price discrimination to divide customers into different groups and charge a different price to customers in different customers in different groups, but the same price to all consumers within the group. The firm will charge groups of customers prices relative to their demand elasticities. We can illustrate this on a graph:

The Internet allows shoppers to easily compare prices across thousands of stores. But it also enables businesses to collect detailed information about a customer's purchasing history, preferences, and financial resources and to set prices accordingly. So when you buy an airplane ticket or a DVD online, you may pay a higher or lower price than another customer buying the very same item from the very same site.

Home Depot was one of the biggest home improvement retailers of America with more than 2248 stores around the world. It was established by Bernie Marcus and Arthur Blank in 1978. Home Depot is headquartered in Atlanta, Georgia. For two decades after its commencement the organization experienced quick development. Be that as it may, in the mid 2000s the organization execution backed off and Bob Nardelli was named the new CEO. Prior the organization took after a decentralized authoritative structure and that functioned admirably until 2000.

Home depot was founded by two men, Bernard Marcus and Arthur Blank, who had lost their jobs in 1978. One day while having coffee thought of a business idea. Blank and Marcus wanted to create a store that incorporated their DIY (do-it- yourself) vision. They wanted their store to specialize in building materials and lawn and garden equipment. This was just going to be something small for them, something that was going to generate some sort of income for them

For first time readers one would think price discrimination is race, sex, and class issue but incredibility it has nothing to do with that. This chapter discusses the concept of price discrimination. What is price discrimination? It “is defined as the existence of price difference across customers for the same good that are not due to differences in the marginal costs of supplying the customers.”( North and Miller, 1971, p.122). Price discrimination arises when marginal costs remain same for consumers but the prices vary. Or the opposite when prices are the same for consumers but marginal costs differ. For example at movie theaters there is a price difference for senior citizens and non senior citizens. The

History. Home Depot Inc. was founded by Arthur Blank and Bernie Marcus in 1978. The vision of the two founders started as a one-stop shop, which operated fully after they opened their first two stores in Atlanta, Georgia in 1979. Each of the store was around 60, 000 square feet making them spacious warehouses, which overshadowed other competitors. Its first stock costed much more than any average hardware that existed at that time, a phenomenon that gave an apparition of more products. From

Price discrimination is defined as charging customers a different price for the same product. One major factor of price discrimination is elasticity of demand. Elasticity of demand measures the percentage of change in quantity to percentage of change in price. If the percent of change is greater than one, it is elastic. On the other hand, if the percentage of change is less than one, it is inelastic. For customers who are not price sensitive, or the demand is elastic, when using price discrimination, the price would rise. The price would be lower for customers who respond more to changes in price, or the demand is elastic. Whenever price discrimination is possible, it can be highly profitable for a business.