Katina Taylor

HRM587
Week 2 Course Project
Images of Change

This material is to analyze two business Images of Change within comparison and
contrast transformation within each company. Together Home Depot and Lowes businesses have
exceptionally solid economic locations and an extended forthcoming in the household
development production. Opposition is virtuous for the retailer but even better for the consumer.
Home Depot and Lowes have its strengths and limitations. The Home Leader vs- Improving
Home Improvements.
Home Depot is the largest home improvement business retailer in the world (The Home
Depot, Inc.). The Home Depot industrialized tactical manufactured goods deal directly with
business-leading companies to supply the most limited varieties to customers (The Home Depot,
Inc.). The company sets the standard to expand the look and design of its stores and its consumer
service. Home Depot has a status for lower prices and more pro-friendly environment. Home
Depot, Inc. is looking to organize and establish domination globally (Strategic Audit for Home
Depot, Inc.- Department).
Lowes is the worlds second biggest home leader improvement retailer (Lowe's
Companies, Inc.). Lowes is working forceful hard for progression to make up for lost time.
Lowes is trying to apprehension the customary do-it-yourself customer (Lowe's Companies,
Inc.). Lowes tries to appeal the lady customer, who the company claims, is responsible for 80%
of home improvement decisions (Lowe's Companies, Inc.) (A Tale Of Two Retailers, 2010).
This, both big ticket items for sale tactics was a downfall for both stores.
. But, as you look closer, there are some significant transformations that separate the two
companies. Lets first take a look at the similarities and then perceive the differences In Stockton
Analysis (Stockton, 2011).
Customer Base
Similarities: both serve residential customers. Both companies are obviously focused on
home improvement. I think Home Depot has an advantage here. Lowes is trying to make
into the commercial market (Stockton, 2011).
Differences: Lowes serves a primarily residential customer, Home Depot serves both
residential and a large percentage of commercial customers as well (Stockton, 2011).
Product Offerings
Similarities: You could argue that the merchandise at both stores very similar or almost
identical (Stockton, 2011).
Differences: Home Depots products are more focused on its commercial customers;
Lowes doesnt have specific products or parts, while Home Depot almost always does
(Stockton, 2011).
Company Size
Both companies are large, coast-to-coast establishments with hundreds of stores, and
both are expanding internationally (Stockton, 2011).
Management and finances.
Similarities: Both companies are enormous-sized corporations; Home Depots market cap
is currently about twice that of Lowes Revenue (Stockton, 2011).
Differences: Lowes has been relatively steady over the past several years while margins
decreased, whereas Home Depots sales have decreased, but its margins have increased
(Stockton, 2011).
Marketing:
Differences: Lowes has focused its marketing efforts on women, a focus on appealing
displays, good merchandising, and strong customer service (Stockton, 2011).
Home Depot was initially less focused on merchandising and become more customer-
friendly (Stockton, 2011).
. Online Presence:
Differences: Lowes is doing a lot more to improve their online presence (Stockton,
2011).
The transformation among Home Depot store and Lowes has been reasonably
progressive currently. Home Depot has been resourcefulness to progress its supply chain
logistics and merchandising struggles. While both companies have improved margins and
growth, Home Depot has accomplished at a higher rate. Home Depot is effectively doing
enhancements, but also increasing a reasonable share with determination to strive to the highest
mark. Lowes will need to be more aggressive and risky in strategizing for a rapid expansion in
business. Between both businesses there have been other key exterior services to win over the
industry besides the macroeconomic rotations, contain customer necessities, increasing
percentage of everyday expenditure on building, widespread use of the internet, and merging
within the industry which moves the business market structure to oligopoly. All the three major
components of the market, namely do-it-yourself, buy-it-yourself and professional witnessed
significant increases in sales.
Home Depot and Lowes both have been impacted by the decline in the housing market.
Through the recession" in addition to a deceitful real" estate market, credit is tight, consumer
self-assurance is historically low, and unemployment is high (Strategic Audit for Home Depot,
Inc.- Department). Upper Management at both Home Depot and Lowes agrees that their
companies growth has decoupled. The housing market and is now more dependent on GDP
growth (Strategic Audit for Home Depot, Inc.- Department). These retailers distribution of sales
to more luxurious, optional type purchases has come down to about 30% of the total (Strategic
Audit for Home Depot, Inc.- Department). The Cost vs. Value survey conducted by Remodeling
Magazine, which approximations the return of renovation projects, continues to show a
descendent trend (Strategic Audit for Home Depot, Inc.- Department). Any good sign is that
restoration costs are beginning to come down as independents become more economical and
consumers look to balance down on quality and/or choices.
Inopportunely, home values continue to fall making it less beautiful and/or economically
reasonable for home titleholders to modernize (A Tale Of Two Retailers, 2010). This should
keep the percentage low for the probable future since we believe that it will be years before we
experience a continuous recovery in home prices. Through the pairing of unproductive supplies
in a hard-hit housing areas and those intended to open that no longer made financial sense, as
well as controlled working capital organization, Home Depot began to pull ahead of Lowe's in
the all-important return on equity amount. Throughout the period since, Lowe's was typically
focused on unit accompaniments in the U.S. and growing the working capital base required to
control new locations. It is obvious that Lowe's strategies have disappointed investors, and
equally rewarded shareholders of Home Depot. Now that Home Depot is perhaps recovering
relinquished market share as evidenced by the shift in same-store sales between the two
companies in, the opening in return methods is set to expand (Sozzi, 2009).
According to the grid three images, this can best be appropriate for both companies as
Director, Caretaker and Coach. Both companies, Upper-management seek to see a solution in the
interest of its employees, well as improvement for the company. Both companies are doing
constant analyzing to come up with new techniques of transformation providing to get more
customers and overall better service to external and internal customers.
The Director role is more in line with imagine success and change to outcomes as being
achievable within the company success. In my analysis both companies are Caretaker based on
their customer services, which can propel change to improve service and create new techniques.
The image that would be facilitated the description would be the Interpreter because no matter
what the impact of the change of the business it still will be able to identify the problem and
make change for their transformation of their business success. Generally, Home Depot and
Lowes are very comparable in many ways.
Yes, both companies can succeed in the home improvement business for years to come.
Because the demand for home improvement products is very extraordinary, and will remain to be
as long as the domain continues to rise and the middle class has cash to spend on home
expansion tasks. As the economy improves, credit relaxes, and middle class family earnings stay
steady, people will continue to spend money on their homes where they most of their time.

References

A Tale Of Two Retailers. (2010). Retrieved January 27, 2014, from AAM Insurance Investiment
Management: http://www.aamcompany.com/a-tale-of-two-retailers/
Home Depot. (2000-2011). Retrieved January 29, 2014, from Home Depot Link, Homer TLC.:
https://corporate.homedepot.com/OurCompany/History/Pages/default.aspx
Lowe's Companies, Inc. (n.d.). Retrieved January 28, 2014, from Hoover:
http://www.hoovers.com/company-information/cs/company-
profile.Lowes_Companies_Inc.9056b3b671052b00.html
Sozzi, B. (2009, November 20). Home Depot Vs. Lowe's Investment Debate Settled, For Now. Retrieved
January 29, 2014, from wstreet.com:
http://www.wstreet.com/investing/stocks/19036_home_depot_vs_lowes_investment_deb
Stockton. (2011, December 03). Lowe's vs Home Depot -what't the difference. Retrieved January 29,
2014, from StockZoom!: http://stockzoom.wordpress.com/2011/12/03/lowes-vs-home-depot-
whats-the-difference/
Strategic Audit for Home depot, Inc.- Department. (n.d.). Retrieved January 29, 2014, from
http://mismain.bsa.kent.edu/ap/syllabi/m05s/Home%20Depot%20part%202A%20August%20