Business Competitiveness: A Little Competition brings in Big Bucks
Professor Parren Shannon, JD
July 22, 2013
Question # 1-Detemine how each corporate culture differs from the other.
When starting a business you as the owner should always have a strategy that sets you apart from competing vendors. What makes your company differ from the others and what would you like consumers to know that set you apart. In today’s market competition is always a factor but it does not necessarily have to be a bad thing; there are advantages to having a competitor. Developing strategies for your competitor is key, “The underlying goal of strategy development is competitive ...view middle of the document...
Lowe's is also focusing more on higher-margin goods. Home Depot, meanwhile, has traditionally relied on low prices, lots of selection, and sales of building materials to professional contractors.
Question # 2- Analyze three (3) ways that each unique culture has benefited by the other’s competition.
Home Depot’s key success factors are excellent management, competitive prices, superior customer service, full range of product and expansive distribution networks. Lowe’s is targeting the customers who remain interested in shopping for big ticket appliances and high margin home furnishings at all their retail stores. Lowe's is pushing hard for growth to catch up to home depot. Home Depot was the most successful retailer for the home improvement industry. However, starting from the end of the 90’s Lowe’s has adapted a very aggressive and risky strategy of rapid expansion especially in Home depot’s own turf. This benefited Lowes because Lowe's moves into bigger metro markets, providing them with a new type of consumer. The culture of Home Depot is referred to as “orange blooded, expressing the company colors and commitment. This orange blooded culture was formed to encourage involvement, passion, and respect for not only the company, but other areas of life such as volunteering and giving back,” (Goodfellow, 2013). Home Depot has benefited by Lowe’s competition because it has cause them as a corporation to down size their retail stores making it more relatable to do it yourself consumers . Home Depot is apparently fighting Lowes every step of the way, “Home Depot has cut back its overall expansion pace. Some of those new stores are smaller "neighborhood" units, designed for urban markets,” (Brumley, 2012).
Question #3- Speculate how each would continue to thrive if its current corporate culture would need to change in the near future.
Given that the home improvement industry is still growing and the help of a growing housing market improve. The home improvement industry will enjoy satisfying growth level as the number of homeowners may increase in the United States making the key factors very important to the...