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Company Case 18 (building lasting customer relationships)
Lowe’s companies: Battling Home Depot
Going Shopping
Joanne Miles had been telling her husband Bud for months that they needed to improve their Greens-boro, North Carolina, home by turning their screened porch into a sunroom. Joanne had scoured home décor magazines and clipped articles on how to design an build sunrooms. Finally, Bud had consented to take on the project.
Bud fancied himself as a very good handyman. He was skilled at the typical do-it-yourself projects such as plumbing, painting, wallpapering, and even fixing sheetrock. Bud realized that Joanne’s porch project would take all his skill. But he figured that with some good advice and a home equity loan, he would be able to complete the project himself.
Bud made a list of materials and prepared to go to a home improvement store to get advice and prices. He invited Joanne to go with him and to pick out the color of th terra cotta floor tile. As they prepared to leave, Joanne asked, “By the way, which store are we going to? Both Lowe’s and Home Depot are located right together there on Wendover Road.”
“I hadn’t really thought about it. Do you have any preference?” Bud answered.
“Not really. Form what I’ve seen, both stores seem to have pretty good selections and prices. Both offer lots of advice. Let’s just get in the car and see how the spirit moves us.”
The Home Improvement Battlefield
Bud and Joanne are just one more target in the increasingly competitive battle for the do-it-yourself (DIY) home improvement market. Lowe’s, Home Depot, Builder’s Square, and other building supply/home improvement chains; independent retailers affiliated with wholesaler groups such as Ace Hardware and Tru Value; and individual hardware stores – all are trying to attract DIY baby boomers like Bud and Joanne.
The Home Improvement Research Institute, a trade association, and Management Horizons, a consulting firm, estimate that the DIY homeowner and building contractor
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