...major players in the home improvement industry. The biggest in The Home Depot. The other, while smaller having 502 less stores, is still a giant of the industry (Cramer, 2013). Through the recession Lowe’s stood while well The Home Depot fumbled. Lowe’s faces competition from opponents other than just The Home Depot as it expands beyond America. As Lowe’s seeks to enter the Canadian and Australian markets it will encounter more diversity than it has experiences so far. The complexities of doing business abroad and opening stores afar will become even more apparent as their international tactics change. Despite the challenges Lowe’s should expand further to become an even bigger player both nationally and globally. Global Competition’s Impact on Lowes In 2009, Lowes had 1,710 stores found throughout Canada and United States, 16 of these found outside the United States, with three stores in Mexico that opened in 2010, allowing for their exposure to bring them to a new level of sales internationally. (“Lowes Companies”, 2012) After much research it is found five competitors could impact Lowes, the #2 home improvement dealer in the world (Racine, 2012), but on different levels. The first competition is the main competition of Lowes, Home Depot, #1 in the world since 2005, (“Lowes Companies”, 2012) is expanding its sales by bringing in more Hispanics to get the attraction they need from the Hispanic community. (Racine, 2012) Unlike, Lowes, Home Depot has 262 stores...
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...the role of the multipliers? Brand: Home Depot Marketing Program Investment: This is the first stage in the brand value chain. Home Depot began promoting early this year because of the early spring, advertisements about getting the yard ready for the summer and starting home improvement projects. Although Home Depot has started early advertising this spring does not necessarily guarantee success. Program Quality Multiplier: The quality of the marketing campaign can be based off of four main factors clarity, relevance, distinctiveness and consistency. Home Depots marketing campaigns are geared toward seasonal changes. The commercials clearly portray what projects need to get done and they offer discounts and specials on those items to bring in business. A marketing campaign that touches on all four factors makes a definite ROI. Customer Mind-Set: The customer mind-set is anything that consists in the minds of the consumer with respect to a brand: thoughts, feelings, experiences, images, perceptions, beliefs, and attitudes. Home Depot has created an image of their store. Customers know that Home Depot is a place to go for all your home improvement needs. They offer competitive pricing, knowledgeable staff, friendly service, clean environment, variety of products and flexible store hours. Marketplace Conditions Multiplier: There are four major players here in the Midwest and those are Home Depot, Menards, True Value, and Lowes. All have heavily marketed spring advertisement...
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...the right thing * Excellent Customer Service * Creating Shareholder Value * Building Strong Relationships * Entrepreneurial spirit * Respect of All People HOME DEPOT VALUES MISSION IS IMPROVING HOMES SWOT ANALYSIS Strengths * Improving home quality with reasonable prices * team leadership WEAKNESSES * In 2011, home depot lowered prices to keep it customers. * MSC money reported that in the 1st quarter in 2011 same store sales went down to 0.6% * New York times indicated that n 2011 4th quarter sales went up to 5.7% * MSC money reported that in the 1st quarter in 2011 same store sales went down to 0.6% * New York times indicated that in 2011 4th quarter same store sales went up to 5.7% Opportunities * In 2013 spring season they plan on hiring more people, more than 80,000 according to cnn money website. * With this added on plan, home depot expects to not only supply jobs but develop great workers who will hopefully increase profit for the spring THREATS * Their competitor lowes Business strategy * Pricing strategy to create values to the customer, do not repeat promotions from previous years GENERAL ENVIRONMENT ANALYSIS * EconomicNature and direction of the economy in which a firm competes or may compete. * Economic recession- home improvement industry categorized as recession proof product * Housing market * Increased restrictions on credit availability-big ticket items financed * demographicpopulation’s...
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...Undoubtedly, the Lowe’s company target do-it-yourself customers who are on a fixed budget because they aim to have the lowest prices. The Lowe’s Bathroom tile ad’s main technique is using an everyday-type person to appeal to a large audience. Lowe's use of an unskilled character in an everyday situation makes the ad relatable to people because most people are not professionals, and it effectively reaches everyday homeowners. Their goal is to provide the best equipment with low prices so that customers can rely on their products for small or big home improvements. When people want to redesign or fix their homes, they either stop by at the Lowe’s store or The Home Depot store for supplies and equipment. The Home Depot Company has always been a competition for Lowe’s Company ever since they gained popularity in the home improvement hardware. Even though both stores sell almost the same things, the two seem to target very different audiences. The Home Depot stores “appeal to professional customers such as contractors and tradesmen” while the Lowe’s store “appeals to a larger do-it-yourself audience”. Both stores have distinct goals, which is to attract a certain audience to make more purchases. From watching the Lowe’s bathroom tile ad, they definitely are promoting a do-it-yourself idea, since the man in the video was working on his own by just using the equipment he bought from Lowe’s. Lowe’s created a short video ad where a man is redesigning his bathroom shower. The man is wearing...
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...Home Depot vs. Lowe’s Retail Home Improvement Financial Analysis Background Introduction The home improvement sector of the economy is large with two major players in the industry and with many smaller local and regional competitors. These two major competitors are Home Depot and Lowe’s. These two companies account for over $110 billion in total sales each year. Even though sales have gone down over the past few years due to the downturn in the economy they have not gone down nearly as much as home sales and this is due to more people deciding to do more home improvements to their own home then buying a new home. Both of these companies have been able to keep up sales and increase them year over year by improving current stores and at the same time expanding both here in the United States and overseas. Company introduction Home Depot The Home Depot also known as Home Depot is a retailer of home improvement and construction products and services. The Home Depot was founded in 1978. The Home Depot operates 2,242 stores across the United States in all 50 U.S. states, the District of Columbia, Puerto Rico, the Virgin Islands and Guam. Sales within the United States were over $77 billion in 2010. The Home Depot also operates internationally in Canada, Mexico and China. Lowe’s Lowe's Companies, Inc. is a retail home improvement and appliance stores and also does construction. Lowe’s was founded in 1946 in North Wilkesboro, North Carolina. Lowe’s operates 1,710 stores...
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...Extra Credit Project COA4131 Name of Stock: The Home Depot Symbol: HD Current Price: 51.94 USD 52 week range: 28.13-52.15 USD 1) In two paragraphs describe the company and what it makes: The Home Depot is an American retailer of home improvement products and construction services. It is the largest home improvement retailer in the United States and fourth largest general retailer according to the U.S. Securities and Exchange Commission. It is headquartered in Atlanta, Ga. As of January 30, 2010 The Home Depot operates 2,248 big-box format stores across the United States (also, Peurto Rico, Gaum, and the Virgin Islands), Canada, Mexico, and China. Stores average approximately 105,000 square feet of enclosed space with an additional 24,000 square feet of outside garden area. The store specializes in all aspects of home improvement: appliances, garden, hardware, plumbing, paint, lumber, flooring, building materials, and installation services/rentals. The Home Depot serve three primary groups: Do-It-Yourself (DIY), Do-It-For-Me (DIFM) customers, and Professional customers. In January 2012 the company acquired Redbeacon. Dividend: 1.16 (2.25%) Company Address: 2455 PACES FERRY ROAD NW,ATLANTA,GEORGIA 30339 Discussion Questions 2) What are the trends of the company? The daily trend for The Home Depot has been UP for 5 days with a very high short term risk. In 2011, the stock was under $40/share and dropped drastically in August however, since October of last year the...
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...success of big retail corporation such as Lowes. This type of planning happens when a company sets up both long term and short term goals for their strategic marketing and planning to achieve financial success. Strategic initiatives can be created in various areas, such as in the area of new products being rolled out and new departments being created. In particular a strategic plan, determines a company’s long term goals and then identifying the best approach for achieving those goals. From the financial perspective, financial planning initiatives are long-term plans aimed at generating capital with objectives focused on greater return on assets, growth in market share, and at solving foreseeable problems. When Strategic plans are met, such as plans focused on certain products or departments, it helps the overall health of the company’s financial status in different areas such as with the store’s revenue, over head spending control, and maintaining a store’s budget. Both Strategic and financial planning share the same company goals for success and the understanding of where the financing must come from to accomplish these goals. Lowes is a leader in home improvement and is committed to never stopping improvement. Lowes mission is to deliver better customer experience, to drive long term sales growth, increased profitability and share holder value. One of Lowes strategic plans is to make the shopping experience for home improvements simple from every purchasing opportunity...
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...having a competitor. Developing strategies for your competitor is key, “The underlying goal of strategy development is competitive differentiation,” (Kurtz, 2012, p. 230). The companies presented below demonstrate the perfect example of business competition. The home improvement industry has been experiencing rapid growth since the late 70’s. Due to the capital effect, consumers would spend high amounts of cash and credit on improving their most prized and expensive possession, their homes. As a result, the home improvement industry experienced quick development and progress. This is what led to the opening of two mega home improvement stores known as The Home Depot and Lowes Companies, INC. The Home Depot which was founded, “1978 in Atlanta, Georgia and has since become the world's largest home improvement retailer, operating more than 1,500 stores”, (Brumley, 2012). Although not as international as its competitor Home Depot, Lowes is a “$26 billion retailer of a complete line of home improvement products and equipment. The company serves more than seven million do-it-yourself and commercial business customers each week through 875 stores in 45 states,” (Brumley, 2012). The difference between a Lowe's store and a Home Depot has been fairly clear-cut up to now. Presentation counts at Lowe's. Its warehouse-style...
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...Global Fortune 500 Company Home Depot | Economics for SocietyAyesha MuhammadSeptember 1, 2014 | Global Fortune 500 Company Home Depot | Economics for SocietyAyesha MuhammadSeptember 1, 2014 | Global Fortune 500 Company Home Depot Home Depot is one of the largest home improvement retailer in the world. With stores in the United States, Canada, Mexico and China. Home Depot was founded in 1978 by Arthur Blank and Bernie Marcus, along with investment banker Ken Langone and merchandising guru Pat Farrah. Their vision was to open a store as a one-stop shopping for the do-it-yourself individual. Home Depot opened their first store on June 22, 1979, in Atlanta, Georgia. In 1981 Home Depot went public on NASDAQ and moved the New York Stock Exchange in 1984. Between 1980’s thru 1990’s the company saw tremendous growth, in 1989 the company celebrate their 100th store opening. The company wish to expand their store globally, so they open the first home improvement centers in 1994 in Canada with the acquisition of Aikenhead’s home improvement centers, in 2001 under the acquisition of Total HOME that expand the vision in Mexico, and 2006 the company extended its reach to China by acquiring the The Home Way, a 12 store chain. Their global expansion demonstrates how The Home Depot combines its vast knowledge of the home improvement industry with the needs, shopping trends and customs of each unique geography to best serve customers. They are committed to being a global...
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...Lowe’s Home Improvement By Noe Rodriguez MKTG 305-07 American Intercontinental University Online September 23, 2012 Abstract The paper contains information regarding Lowe’s home improvement. The 4 Ps of marketing that Lowe’s uses at this time are also included in this paper; Lowe’s is considered an oligopoly as the second home improvement store in the nation, explanation on how it has dealt with Home Depot and other stores is part of this paper. Lowe’s Home Improvement Introduction Lowe’s is a great company in the fortune 500 which serves home improvement and, has been around for 60 years; it was founded in 1946 and it is considered today the largest home improvement retailer globally. Lowe’s has 1,745 stores within the USA, Mexico and Canada; it ranks number 54 in the Fortune 500 list, it also is a contributor to the consumer by contributing over $32 million dollar to different schools. (Lowe’s.com) Countries Lowe’s operates in the USA, Canada, Mexico and Australia; the expansion to Canada began in 2007 where Lowe’s open a store in Hamilton, Ontario; then in 2008 proceeded to enter the market of Monterrey, Mexico, and is building 150 stores in Australia. In the USA alone it has 1,710 stores. 4Ps of Marketing Lowe’s There are market types which are to be considered important and they are competition, monopolistic competition, monopoly, and oligopoly, because Lowe’s is constantly in competition with...
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...Introduction Whether you own your home or rent, chances are that at some point you will find yourself looking for something that will lead you to one of these two retail giants. The home improvement industry has evolved from small regional and locally owned hardware stores to these superstores. The top two in the industry are Home Depot and Lowe’s. Each has their eye on moving into international markets, each has superstores in all 50 states and each has evolved along different paths to reach their current positions. According to Fortune 500 Home Depot, Inc. is ranked at #25 and the second largest retailer in the US after Wal-Mart. Home Depot Inc. has its corporate headquarters in Atlanta Georgia. What began in 1979 as two 60,000-foot stores that resembled warehouses has grown to about 2,200 stores across North America, Puerto Rico, and China. Home Depot Inc. is publicly traded on the New York Stock Exchange as NYSE:HD. At the end of 2008 Home Depot Inc. employed 331,000 people. Home Depot sales recorded and posted in 2009 are $71,288.0 mil. Home Depot Inc. is the number one home improvement retailer with Lowe’s coming in second place with sales posted in 2009 at $48, 230.0 mil.. Founded in 1946 Lowe’s went from a small hardware store to the ninth largest retailer in the US. Lowe’s went public in 1961 and began trading on the New York Stock Exchange as NYSE:LOW in 1979. According to Fortune 500 Lowe’s Companies, Inc. is ranked at #47. Lowe’s Companies, Inc. are headquartered...
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...Finba1. i. Home Depot’s mission statement is 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 core values include the following: Excellent customer service, Taking care of our people, Giving back, Doing the "right" thing, Creating shareholder value, Respect for all people, Entrepreneurial spirit, Building strong relationships.” (Home Depot, 2014). According to Exhibit 2.1 in chapter two, Top management of a company provide strategic direction after assessing the external and internal environments. Taking a look at the external environment, some of Opportunities available to Home Depot (Circa 2005) were Restructuring, to make operations more sound and profitable, provision of internet shopping facilities to customers, and expanding the market geographically and locally, as well as targeting new market segments. It should be quite important to note that during the Nardelli era, the slogan Home Depot used was “Improve everything we touch”. Threats included declining home sales and market share, a looming credit crunch, a dip in the level of customer service and product knowledge hitherto offered due to poorly trained staff, and a saturation of the markets in North America. Increasing levels of Environmental Uncertainty as more layers of management are added to achieve a more vertical structure...
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...Recommendation: Home Depot Jermaine Singleton Capella University MBA6004-Foundational Skills Business Leaders Jeff Leinaweaver November 15, 2013 Home Depot Incorporated Home Depot is a retailer, which is one of the fastest Corporations in the United States. In the early 80s, the company went public with NASDAQ and join with the New York Stock Exchange. There was a tremendous growth in the company between the 80s and 90s. Home Depot began putting home improvement centers in Canada in 1994 and Mexico in 2001. The company expanded the business to China forming a 12 store chain called The Home Way in 2006. The company also develops a strategic alliance with manufacturers leading in the industry to give customers exclusive products. Home Depot advertises different national brands to set standards for the merchandise use by professional contractors and customers. Home Depot has offices in China, Canada, U.S., India, and Mexico. The company is enhancing the relationships between the customers and the manufacturers and changing the customer’s confidence in the international suppliers. The two largest companies in the industry, which is Home Depot and Lowes, are the high entry barriers. These companies hold the high cost to maintain the success factors with other companies. The home improvement...
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...1.The Home Improvement Industry consists of companies which sell goods and offer services that are used to improve the quality, value, and living situation of residential housing. 2.Revenue of the industry is 159 billion(US Dollar) 3.Annual growth for the period 2007-12 is -2.8%. 4.It came to existance post world war ii intensifying price competition and the continued dominance of the industry's top players keep profit down. 5.This industry includes stores that sell a broad range of home repair and maintenance goods like hardware, tools and electrical goods, as well as lumber and structural material for construction and renovations. Stores that focus on a specific area like flooring or wall coverings are excluded from this industry. Operators purchase goods from domestic and international manufacturers and wholesalers and sell them to end-users, such as do-it-yourself consumers and professional contractors. 6.Home improvement is the process of renovating or making additions to one's home. Often, a professional handyman is hired to perform the improvements but, typically, most improvements are done on an amateur DIY basis by the homeowner. 7.Several major retailers, such as Home Depot and Lowes, specialize in selling materials and tools for DIY home improvement. These stores even host classes to educate customers how to do the work themselves. 8.U.S. Census data show a boom in home repair and improvement between 1982 and 1992: a 115% increase, the largest of any...
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...Scratch: How a Couple of Regular Guys Grew the Home Depot from Nothing to $30 Billion, tells the story of Bernie Marcus and Arthur Blank, and how they are responsible for one of the biggest entrepreneur successes in recent history. This novel shows, first hand, how they became leaders within the home improvement industry. This was no easy task, but these two had experience. Bernie’s parents immigrated to America, and he grew up in a poor neighborhood, Newark, New Jersey. He dreamed of working in medicine, but could not afford the kickback he needed to pay Harvard Medical School to circumnavigate the quota they had at the time for people of Jewish ancestry. Bernie soon graduated from Rutgers, Newark, and worked as an intern in a pharmaceutical company. One day a customer came in that forever changed his life. Bernie was introduced to the world of discount stores when he met a man named Danny Kessler. A few years later Bernie worked alongside Arthur blank within one of the most successful home improvement chains at the time, Handy Dan’s Home improvement center. Bernie became the President and CEO, and Arthur was the vice president of finance. They were eventually fired, and faced legal trouble due to a false accusation. It was at this time that they decided to open up their own home improvement store, one that captured their own core values. They had high hopes of a store that far surpassed Handy Dan’s Home improvement center. The idea was to build a store more than...
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