Question

Compare and contrast Home Depot’s functional strategies (e.g., marketing, human resources, production, etc.) with those of Lowes. What should Home Depot’s top management do at the functional level to distinguish the firm from its closest rival?

Strategy and Managerial Decision Making

Answer 1

Both Home Depot and Lowe's are top brands in the west for home decors and appliances. Though Lowe's is much older than Home Depot, even though at present Home Depot has become the leading brand when it comes to home decors. Due to it's leadership qualities, strategy making etc it has managed to outdo Lowe's in the competition. Let's discuss some functional strategies of Home Depot in order to understand what has made it to stand apart from the rest of it's rivals like Lowe's.

Functional Strategies Of Home Depot :-  ( Comparison with the Lowe's)

1) Marketing : The excellent marketing strategies adopted by the Home Depot has made it stand apart from the rest. To grow any business or company, one needs to focus on marketing strategies. Home Depot focus on Innovation, after-sale services, quick and reliable delivery, understanding customer's needs etc. Home Depot has excelled in Innovation. For example, Home Depot has recently come up with its 'LifeProofSlip Resistant Tiles' , these tiles are 50% less slippery than any other tiles. Also it's multi-shade 'Halo Lights' has been a success. Therefore, it believes in innovating it's products very often and so satisfy it's customers. Even the After-sale services provided by the Home Depot company is remarkable. That way the customer need not worry about the product even after buying due to it's good services. When it comes to Delivering the products, it is again quick and reliable on all home improvement products. Thus, Home Depot has proved to be flexible and also understands the needs and taste of the customers. On the other hand, Lowe's has been a bit behind in the competition when it comes to certain marketing strategies. This is due to lack of often Innovation services. Though Home Depot is around 3 decades younger than the Lowe's, even then the Home Depot has managed to outdo Lowe's due to it's outstanding creation and Innovation.

2) Production : The Home Depot has it's branches spread in the U.S. , Mexico and Canada. It has many production centers with it's headquarter in the Atlanta. The production of the Home depot is done by keeping in mind the needs of the customers and their demand of the product. Accordingly with it's quick delivery services, products are supplied to the stores. Production is done on a huge scale everyday in the Home Depot. When it comes to Production, Home Depot is again ahead of the Lowe's. The Home Depot has around 2269 stores whereas the Lowe's have around 1840 stores in total. This itself is a huge difference and thus do affect it's production as compared to the Home Depot.

3) Finances : As for it's finances, a recent report made by the Fortune 500, Home depot ranks 23rd in the United States. The finances of the Home Depot is very well managed and this is can be known by it's unfailing efforts made during the Recession Period in the year 2008-2010. Even during the recession, The Home Depot had made a successful production and thus has been able to make it's mark in the stock market. In case of Finances, the target market of the Home Depot is much bigger than that of the Lowe's. Also, the average number of sales in the Lowe's is lesser than that of the Home Depot. This itself has a direct impact on it's finances.

In order to maintain Home Depot's goodwill in the market, Home Depot's top management should continue to focus on it's strategic plans and keep in innovating and coming up with new and attractive things for it's customers. In order to maintain it's position in the Industry, It (Home Depot) must be flexible and keep changing according to the times and according to the need of the customers.