Value Line Publishing is an investment survey firm wherein Carrie Galeotafiore presents a five-year financial forecast that shows Home Depot in a positive light. It also prepares to do the same with an analysis of Lowe's. Home depot and Lowe’s are merchandising companies which operate in the same market including initiatives aimed at bettering customer service, attracting professional customers and creating a more favorable merchandise mix. II. Problems/Opportunities
1. Acquisition or Consolidation
1. In 1999 Lowe’s had acquired the 38-store, warehouse-format chain Eagle hardware in a $1.3 billion transaction. 2. Home Depot had acquired the plumbing wholesale distributor Apex Supply, the specialty-lighting company Georgia Lighting, the building-repair-and-replacement-products business N-E Thing Supply Company, and the specialty-plumbing-fixtures company Your “Other” Warehouse 3. Home Depot had announced the purchased of 3 flooring companies the “When completed would instantly make Home Depot the largest turnkey supplier of flooring to the residential construction market” 2. Professional Market
2.1 Both Home Depot and Lowe’s had recently implemented initiatives o attract professional customers more efficiently, including stocking merchandise in larger quantities, training employees to deal with professional and carrying professional brands
2.2 Home Depot had developed Home Depot Supply and the “pro Stores” to reach out the small-professional market. The company was also on the track to install professional-specific desk at 950 stores by the end of 2002. 3. International Expansion
3.1 Home Depot had already developed some international presence with its acquisition of the Canadian Home-improvement retailer Aikenhead in 1994m and it continued to expand its reach in the market with 11 new stores opening in 2001. More recently the company had targeted the 12.5 billion home-improvement market in Mexico by acquiring the...