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Lowes Vs Home Depot Research Paper

451 Words2 Pages

Lowes vs. Home Depot Home Depot and Lowes compete in the same home improvement industry strategic group. The Home Depot is implementing a low-cost provider strategy but focuses on serving the do-it yourself consumer buyer. Home Depot is also developing more in the international markets. Lowe’s customer focus is on the professional, the do-it-yourself consumer, and the do-it-for-me consumer. In some cases, Lowe’s is on the cutting edge of market trends with Home Depot employing a follower strategy also implementing a low-cost provider strategy. Home Depot’s current generic strategy (based on Porter’s model) is broad differentiation combined with cost leadership. Home Depot uses broad differentiation as its primary generic strategy and cost leadership …show more content…

Based on this intensive growth strategy, a strategic objective is to offer products at affordable prices. Home Depot’s cost leadership generic strategy supports this intensive growth strategy. To enhance its product selection, the company has developed strategic alliances and exclusive relationships with suppliers to market a variety of well-known brand names (Home Depot Product Authority, LLC, 2016). Lowe’s competitive business level strategy is a low-cost provider. Lowe’s is able to keep costs low through by purchasing in large quantities from suppliers, buying directly from manufacturers, using technology to control costs, and setting up distribution centers to service area stores. To better service this set of customers, the company offers installation services, provides customers with the opportunity to order unique items not stocked in the store, and provides one stop shopping for commercial customers. Lowe’s offers everyday low prices to customers and financing via a proprietary credit card and Lowe’s project card (Lowes.com,

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