Question

The home improvement brands, Home Depot and Lowes typically locate their stores near each other rather than away from each other. Does this make them more differentiated or less? Does this increase their market power or decrease it?

Answer 1

Home improvement brands home theatre port and Louis typically locate their stores near each other on the basis of this report there is differentiated policy or let it initiated policy so here the analysis is that, both are the very good and tough competitor of each other they providing their services related to plumbing or any type of hardware just close to each other on the basis of this analysis when they are standing in a same place then it will create a big competition and here that differentiate word clarify the nature of the firm is clear and high because everyone is going to prove itself a big brand and providing a large variety of services.
So it increases the market power and in the long-run it increases the revenue of both the firms because when consumer is not satisfied with one seller them immediately approached to another one so here are the thinking time for consumer is very less because a good option is always available and near to the previous one and it will definitely increases the revenue and the competition spirit among the firms so from the revenue market point of view it is a good policy to stand on a single place and to provide a variety of goods to the customer it will enhances the market share the possibility of good selling in the market