The present paper focuses on Lowe’s and Home Depot’s value propositions and provides suggestions on improving Home Depots’ value proposition. It examines the concepts and models such as the value creation framework and how this model is applied in the case of Home Depot. Then, it compares Home Depot’s and Lowe’s value propositions and finally it suggests a new value proposition and ways to implement it internally and externally.
Nowadays, the home improvement market faces many challenges such as the weak housing market. Customers spend less in re-modelling their houses, travel less and it is difficult for them to get home equity loans. Consequently, Home Depot and Lowe’s should offer a value proposition that adapts to these modern circumstances.
Issues such as the strategy of the companies and their positioning and differentiation, matter for understanding how consumers make their purchasing decisions. By making use of theories on customer value as well as how changes in positioning and differentiation under the present macroeconomic environment (recession, weak housing market) happen the aim is to understand how Home Depot is able to achieve a differentiated value proposition.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Customer Value
- Home Depot and Lowe's customers perceived value.
- Home Depot and Lowe's Background
- Home Depot
- Lowe's
- Home Improvement Market Key Success Factors
- Positioning and differentiation
- Value Creation Framework
- Home Depot and Lowe's Background
- Home Depot - Current Value Proposition
- Value Chain
- Value Net
- Lowe's Value proposition
- Comparison Home Depot's and Lowe's Value Proposition
- Home Depot's and Lowe's Core competences
- Competitive Core Resource Comparison
- Customer Value Map
- Home Depot - New Value Proposition
- Positioning strategy
- Differentiation strategy
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
The paper aims to examine the value propositions of Lowe's and Home Depot, providing suggestions for improving Home Depot's value proposition. It explores concepts like the value creation framework and its application to Home Depot. The paper then compares Home Depot's and Lowe's value propositions and proposes a new value proposition with strategies for implementation.
- Customer value perception in the home improvement market
- Value proposition analysis of Home Depot and Lowe's
- Impact of macroeconomic factors on customer value
- Strategies for positioning and differentiation in a competitive market
- Developing a new value proposition for Home Depot
Zusammenfassung der Kapitel (Chapter Summaries)
The introduction discusses the importance of a clear customer value strategy for achieving competitive advantage in a challenging market. It highlights the impact of economic factors like the weak housing market on the home improvement sector. The paper then examines the concept of customer value, emphasizing the changing drivers of value perception over time. It discusses how companies should adapt their value propositions to meet evolving customer needs.
The chapter on Home Depot and Lowe's customer perceived value provides an overview of the companies' backgrounds and their key success factors in the home improvement market. It analyzes their positioning and differentiation strategies and introduces the value creation framework. The chapter on Home Depot's current value proposition explores its value chain and value net, while the following chapter examines Lowe's value proposition. The subsequent chapter compares the value propositions of Home Depot and Lowe's, focusing on their core competences, resource comparison, and customer value map.
Schlüsselwörter (Keywords)
The key concepts explored in this paper include customer value, value proposition, positioning, differentiation, competitive advantage, home improvement market, value creation framework, value chain, value net, and core competences. The analysis focuses on the companies Home Depot and Lowe's, comparing their value propositions and exploring strategies for improving Home Depot's position in the market.
Frequently Asked Questions
How do Home Depot and Lowe's differ in their value propositions?
The paper compares their positioning and differentiation strategies, analyzing how each company creates value for customers in the home improvement market.
What impact does the housing market have on home improvement retailers?
A weak housing market leads to less spending on remodeling and difficulties in obtaining home equity loans, forcing companies to adapt their value strategies.
What is the "Value Creation Framework" mentioned in the study?
It is a model used to understand how companies like Home Depot can achieve a differentiated value proposition by aligning their internal resources with customer needs.
How do consumers perceive value in this industry?
Customer value perception is influenced by factors like price, service quality, and how well a company's offerings adapt to macroeconomic conditions like a recession.
What new value proposition is suggested for Home Depot?
The paper proposes a new strategy focusing on improved positioning and differentiation to regain competitive advantage in the changing market environment.
- Quote paper
- Fotini Mastroianni (Author), 2011, Consumer perceptions of value in relation to products of Home Depot versus Lowe’s, Munich, GRIN Verlag, https://www.grin.com/document/346297
