Lowes Vs. Home Depot: Location, Location, Location – Essay Example
1. Why is there so much competition between Lowe’s and Home Depot in the home improvement market? Competition between Lowe’s and Home Depot has significantly increased due to the recession. People have been strapped financially and therefore, their purchasing power has decreased drastically. As the two primary competitors in the home improvement market, it is essential that each of the companies satisfy the needs of their clientele. Given is the fact that there is little to no room for them to expand, they must develop on what they have and work on augmenting profits and ensuring that the competition does not get an upper hand on the consumers. This results primarily to the benefit of consumers who are provided with better options through the healthy competition among the home improvement stores.
2. How have Lowe’s and Home Depot differentiated their stores in the minds of the consumers?
Interestingly, a survey shows that 53% of respondents chose Lowe’s over Home Depot with 47%. But net profits for both companies suggest otherwise with Home Depot banking in $4.395 billion and Lowe’s only at about half with $2.809 billion. The article pinpoints location as the reason. Furthermore, while Lowe’s caters mostly to women who wish to furnish, decorate and aesthetically improve their homes, Home Depot is geared towards men who include home builders, contractors and DIY-ers. The more sophisticated image of Lowe’s is perhaps the reason behind the result of the survey but it does not preclude that traffic ultimately goes in their favor.
3. Which home improvement company do you feel has the better competitive image? Lowe’s or Home Depot?
For practical and evident reasons, Home Depot has the better competitive image. Although the image of Lowe’s is much more appealing than Home Depot’s it must be considered that at the end of the day, especially in these trying times, people would still prefer what is sensible over what is pleasing. In this sense, home depot has the better competitive edge that stands the test of time, no matter what the economic climate may be.