Location Analaysis

There are many competitors in the home improvement industry today and competition is at an all time high. There are two very strong leaders in the industry today and they are The Home Depot and Lowes. McCoys being the private company they are cannot compete with these two industry giants. Therefore in order to survive they must have some sort of location strategy or plan.

Obviously being the big companies they are Home Depot and Lowes are going to dominate the suburbs and big city areas. That is why McCoys started out being old fashion and making house calls and delivering all materials for customers. Of course as time changes and companies grow and add customers that would be a heavy load to take on. So they continued marketing towards old fashioned builders but they could not make all the deliveries anymore. They also extended their product mix so it didn't only favor commercial products like before. McCoys to this day only opens stores in rural areas just outside of the suburbs. To This day 90% of McCoys stores are located in rural areas. The other 10% that are located within a certain suburb are only because a Lowes or Home Depot was not there first. McCoys has a brand new marketing team and a much higher budget for advertising. Now when they open their stores in the new rural areas they will use the advertising to show they focus on the old fashioned builders "the ones who build just to build". McCoys have also been known to open stores near up coming neighborhoods just outside suburbs. They do this because not only can they sell their products to the homebuilders who run short on supplies but also to the home owners. With a brand new neighborhood new homeowners are never satisfied with the original design. So the first couple of years a person wants to decorate and build things in their yard and on their houses. And after their done adding to their house in that two years by then it is already to start the upkeep of your house. In purchasing a new house you have to come to expect things failing and having to be changed out after a few years and