Lowe’S_vs._Home_Depot

Lowe’s vs. Home Depot Home improvement warehouse is a generally huge store where you can find tools, materials which you need for your home. Most people in the United States are updating their homes, because they want to see vividness at their house. Therefore, they regularly create new home projects. Consumers still keep shopping and renew their home slightly, even though the last financial meltdown and uncertain economic times. Competition in the globalized world has been intensified than ever. “Competition is the process by which market forces operate freely to assure that society's scarce resources are employed as efficiently as possible to maximize total economic welfare” (Kolasky). While companies compete in their industry, the most critical priorities take over the profitable customers and retain them in the new economical conditions. Profitable customer retention will not be easy, because there is a fierce competition to competitors for grab profitable costumers in each sector. Similar to those of today, Lowe’s and Home Depot have been competing in home improvement warehouse industry. The war in an intense competition between Lowe’s and Home Depot, forcing to find new competitive areas and tools two companies as it is. Lowe’s and Home Depot are very strong companies. “Lowe’s is a $47.2 billion retailer, offering a complete line of home improvement products and services. The Company has 1710 stores in the United States and Canada. It was founded in 1946 and based in Mooresville, North Caroline. Lowe’s is the second-largest home improvement retailer in the world and employs more than 238,000 people. The Company’s stock is listed on the New York Stock Exchange with shares trading under the symbol LOW” (Lowe’s Annual Report). “Home Depot is the world’s largest home improvement retailer. Home Depot stores average approximately 105,000 square feet of enclosed space, with approximately 24,000 additional square feet of outside garden area. It has 2244 stores located in the United States and e few countries”(Home Depot Annual Report). Lowe’s and Home Depot is the most growing home improvement warehouse operator which is so much competition between them in the United States. These two competitors are primarily racing each other, because they are standing first two sorting at the home improvement market in the United States. Also, uncertain economic concerns generate reducing and delaying expenditures for consumers. Families’ to-do-lists gradually fallen off with high unemployment rate, even though home improvement prices have been continued to decline. As a result of these, consumers have reviewed their priorities and decisions. “Comparable store sales declined 6.7 % in 2009” (Lowe’s Annual Report). Under these indicators, home improvement warehouse market became highly competitive. Lowe’s and Home Depot especially compete based on customer service satisfaction and location, because last economic recession pulled down the prices to the bottom level. Therefore, prices are not a competitive tool right now. Under the uncertain economic concerns, these two home improvement warehouse operators should differentiate their stores in the minds of customers. One of the most important reasons to differentiate in customers’ mind is fully understand of customer needs and respond according to this expectation in this economic condition. For instance, customers want to save money in this time, because they concern with their future. On the other hand, they save their home projects for future which is do it yourself (DIY). They want to paint their rooms themselves and save money. If these companies want to change of customer minds to their companies, they support, advice, and offer them to successfully complete their DIY. The other most important reasons to differentiate in customers’ mind are implement customer focused policies and increase customer satisfaction. Increasing the market share in today’s economic condition, the most important key has become customer satisfaction. “Our customers expect a high level of customer service and product knowledge from our associates” (Home Depot Annual Report). The economic recession has been increased of customer sensitivity. The both companies are known that customers who are unsatisfied affect directly the company’s market share. For this reason, they have to compete with closest competitor and grab the consumers who are unsatisfied. There are a few differences among Lowe’s and Home Depot competitive images. They have slightly, but important differences at customer portfolio among them, even though they compete in same sector. One of the most important differences shows that Lowe’s more answers to customer’s individual purposes then Home Depot. In contrast, some of Home Depot customers are more institutionalized then Lowe’s. For example, Home Depot more answers bigger jobs which are customers need. Therefore, difficult to answer that which company has better competitive image then the other, because it depends on the customer portfolio and customer needs. Another important difference among Lowe’s and Home Depot competitive image is location. Lowe’s mostly prefers urban areas, while Home Depot is investing out of town. As a result of these, better competitive image can be chancing depends on customer and location. In short, Lowe’s and Home Depot are competitors which are close following each other. They have been measuring company’s costumer services and trying to increase their market rates. While they take a decision and manage their policies, they don’t ignore the economical conditions. They focus on differentiates in the home improvement industry and improve of customer satisfaction. Nobody knows that which one will be more successful, but we know that they always will be close following competitor among them.