Executive summary Case Study Example | Topics and Well Written Essays - 250 words - 1

Executive summary - Case Study Example Home depot management is seeking to improve profitability by; reducing costs through product review, purchasing improvement and increasing number of rental centers, address the current declining customer service and increasing its revenue by between 15% and 18% to be achieved partly through acquisition. Lowe’s company seeks to improve profitability by; introduction of new merchandise, changing its pricing strategy. It expects to open up more branches in its predominant rural areas as well as metropolitan areas, currently dominated by Home Depot. The management also seeks to maintain its current revenue growth 18% to 19%. Alternate products; Home depot has the ability to diversify its current operation by expanding into alternative product as a means of boosting profitability. The new ‘at home’ product has a growth potential of 30% annually compared to overall company’s growth potential of 15%. Alternative retail format; home depot should focus on new methods of ensuring that its customers are taken care of. This should involve focusing on the new program of Service Performance Improvement as a value addition to its customer since preliminary studies show that it’s outperformed the current do-it yourself program in terms of productivity, operating margins and inventory turnover Alternative product; the current market is made up of hardware’s, lumberyards and larger-format home centers. By consolidating its market share gains in the new category of appliances, the company stands a change to operate more profitably. International expansion; Lowe’s is currently a major participant in the domestic market but does not have international presence, compared to Home depot whose revenues from foreign markets make up to 10% of total sales. Although both companies are currently implementing growth strategies, future growth opportunities available for them vary. Home depot can successfully improve profitability by acquisition, developing