An Analysis of Home Depot and Lowes

After analyzing the companies it seems that the only different between them is their color schemes. This includes marketing, human resources, and promotion. They both roughly have the same amount influence on suppliers so it would be hard to get an advantage that way. The best way Home Depot could distinguish itself from Lowes is to find a way to be the go to place for products they both have problems selling.

This assessment will evaluate different views of capital structure using Home Depot financial information from March 10, 2014. The evaluation will compare Home Depot to its largest competitor (Lowes) discussing similarities and differences. It will then provide examples supporting Modigliniani and Miller’s (MM) findings around the impact financing decisions have on a firms value.

The Home Depot (Ticker: HD) is the world’s largest home-improvement retailer along with being an American Fortune 50 company. The company operates 2,259 retail building supply/home improvement “warehouse” type stores all across the United States, Canada and Mexico. The Home Depot has over 340,000 team members and is based in Atlanta, Georgia. The average store size is just over 100,000 square feet along with an additional 24,000 square feet set aside for seasonal gardening.

Established as the older company of the two, Lowe’s ranks forty-second as a Fortune 500 company. Established in 1946 as a small hardware business, Lowe’s has grown into a 40,000 product, global market enterprise that consist of 1,710 stores nationwide expanding into the countries of Canada, Mexico and Australia (Lowe's Internal, 2010) Home Depot, founded in 1978, is the fastest growing retailer in the United States. Ranked twenty-ninth as a Fortune 500 company, Home Depot continues to remain the number one do-it-yourself retail store in America. These two companies may sell products of the same nature, but comparing their Code of Ethics is their way of setting themselves apart. (Home Depot Internal, 2009)

Lowe’s is part of an oligopoly type market structure. An oligopoly is a situation in which a particular market is controlled by a small group of firms with at least two firms controlling the market. The main key to behavior in an oligopoly is that companies must take into account what other companies will do. In perfect competition, firms are price-takers and can ignore other firms (Basic Economics, 2009). The home improvement retail stores are an industry that includes Home Depot, Lowe’s, Builders Square, and in other states, Menards.  Smaller companies have to try to compete with them to stay in business.

Home Depot’s corporate and business level strategies are important to the company overall success. However, the functional strategies are equally important for Home Depot to succeed. First, in the area of marketing, Home Depot partnership with ESPN has paid dividends for the company. Currently, Lowes does not have any partnerships with ESPN. Conversely, Lowes does advertise via weekly ads and TV ads. In the area of marketing, the edge would go to Home Depot.

The Home Improvement Stores in the US account for over $300 billion market cap while taking in over $217 Billion in revenue (Home Improvement Industry, 2017). The Home Depot (HD) is the clear front runner with Lowe’s coming in second. Both companies are of comparable size; although Home Depot is slightly larger with having 2,274 stores compared to Lowe’s having 1,840 stores. Both companies are public companies and listed on the Fortune 500.

The strengths of the Lowe’s Company include: established presence and efficient merchandising, strong logistics and distribution system, and focus on seamless multi-channel experience. Right now Lowe’s is the second largest home improvement retailer in the world and are currently number fifty-four on the Fortune 500 list. They are also number thirteen in the top fifty US retail brands list. They cater to numerous customer types through their stores and have a proficient marketing plan that they use to increase their customer base. As of this past February, Lowe’s has operated 1,745 stores with only thirty-one in Canada and two in Mexico. Each of the different stores make up specific sections to effectively target the different needs the

When The Home Depot was founded in 1978, Bernie Marcus and Arthur Blank had no idea how revolutionary this new “hardware store” would be for home improvement and the retail industry. The Home Depot sells from building materials to furniture, everting about your home improvement. Today, the Home Depot is the world 's largest home improvement specialty retailer, with 2,274 retail stores in the United States, Puerto Rico, the territories of the U.S. Virgin Islands and Guam, Canada and Mexico. 1,977 stores of them in the U.S. about 385,000 Employees around the world. As of the end of the first quarter of 2016, The Home Depot about 298 international operations represent 13.1 percent of store base. The Company has been already the largest home improvement retailer in Mexico, in addition to the U.S. The Home Depot entered Canada in 1994 and Mexico in 2001 through a combination of acquisitions and organic growth. Both markets are examples of how The Home Depot combines its vast knowledge of the home improvement industry with the needs, shopping trends and customs of each unique geography to

The Home Depot used very low technology. Even, the Depot lacked the hardware infrastructure .The small stores not having the required infrastructure for the Large Inventories which posed a huge problem for the Home Depot.

Home Depot began with just two hardware stores in 1978 that then expended into one-stop shops around the world. Home Depot, known as the base for home improvement is now the world’s largest company. There are over 2,000 stores located in the United State, Canada, Mexico, and China. Frank Blake is the current Chairman and CEO Home Depot. Frank Blank started his reign as CEO of Home Depot by downsizing the company, laying off 11,000 staff.

The Home Depot Inc. is an American Home improvement supplies retailing. The founder of Home Depot is Bernard Marcus, Arthur Blank, Ron Brill, and Pat Farrah. There are in business for about 39 years. Home Depot Headquarters is in Cobb County, Georgia, U.S. Lowe’s Inc. is fortune 500 American company that operates a chain of retail home improvement and appliance. The founder of Lowe’s is Lucius Smith Lowe and Carl Buchan. The company headquarters is in Mooresville, North Carolina, U.S. and founded in 1946; about 71 years

"The Home Depot NYSE: HD, headquartered in Vinings, Georgia, is a home improvement retailer that aims for both the do-it-yourself consumer and the professional in home improvement and construction. It is the second largest retailer in the United States, behind Wal-Mart; and the third largest retailer in the world, behind Wal-Mart and French company Carrefour. The Home Depot operates about 1,900 stores across North America. The company operates stores in the United States (including the 50 states, Puerto Rico, the United States Virgin Islands), Canada, and Mexico. The Home Depot also operates EXPO Design Center stores in select U.S. markets, providing high-end home design products and services. Its 2004 sales

Home Depot is the largest home-improvement retailer in the world, employing more than 300,000 people in more than 2,257 stores in the United States, Mexico, Puerto Rico, China, the Virgin Islands, Guam, and Canada. Despite being challenged several times by difficult times and economic downturns, Home Depot has managed to continue being the number one home-improvement retailer. Furthermore, Home Depot has omitted itself to being more than just a home-improvement retailer contributing to their success.

They were able to start off opening 3 stores around Atlanta, Georgia in 1979 and they opened four more stores in South Florida in 1981. The stores became a huge success that they generated up to 50 million dollars that they decided to go public. By 1983, Home Depot had been really successful that they opened stores in Arizona and Louisiana. Their sales were growing year by year making up to 250 million dollars that they decided to make another expansion to California, northeastern U.S, and Canada. They were growing rapidly and they were taking most of the market share in the industry that they reached 500 operating stores by 1997. These stores generated revenue of more than a billion. The store started expanding outside the US to countries like