Lowes Table Of Contents: The Company ✓ Solved
Lowes 2table Of Contentstable Of Contents 1the Company 2s
The Company
Lowe’s Inc. is an American retail store that sells home improvement material. According to Lowe’s corporate website, Lowe's was founded in 1921 by L.S. Lowe as a small hardware store selling a variety of hardware equipment, dry goods, horse collars, and groceries. At that time, it went by North Wilkesboro Hardware Company. L.S. Lowe died in 1940; the business was passed down to his son Jim Lowe. Shortly after taking over, Jim Lowe offered his brother-in-law Carl Buchan part ownership. In 1946, under the leadership of Carl Buchan, the company expanded and shifted its focus solely on selling home improvement products and was renamed Lowe’s. In 1952, Carl Buchan became the sole owner of Lowe’s, ending the joint ownership with his brother-in-law Jim Lowe. Since then, the organization has maneuvered through many industry challenges.
Lowe’s is currently the 8th biggest retail store and the second-largest home improvement store in the United States. The company has positioned itself within various industries, providing various products and services, and it has grown significantly in both revenue and size. As of 2020, Lowe’s employs about 300,000 associates in approximately 2,200 stores located in the United States and Canada. At one time, Lowe’s held a portion of the home improvement market in Mexico until 2018 when they decided to cease operations there due to strong competition from Home Depot.
SWOT Analysis
SWOT Diagram
- Strengths
- Weaknesses
- Opportunities
- Threats
Strengths
Lowe’s sells a lot of notable brands among its numerous classifications, which play a significant role in attracting customers and boosting sales. The appliances category features brands like Samsung, Whirlpool, and GE, while the tools department carries DeWalt, CRAFTSMAN, and Hitachi. The company consistently expands its portfolio with new brands, including private brands like Kobalt and Allen Roth. Lowe's is also enhancing its omnichannel capabilities for a seamless customer experience, offering options like in-store pickup or home delivery.
Weaknesses
However, one of the significant weaknesses is the lack of physical stores in other countries, limiting their reach. In addition, supply chain issues due to outdated systems have impeded efficiency. Although Lowe's has invested in modernization, issues related to inventory and stock levels persist.
Opportunities
An opportunity for Lowe’s lies in the rising trend of DIY among millennials, which can be leveraged through targeted marketing and educational resources. Additionally, the global home improvement market's growth, especially in Asia Pacific, offers potential for expansion. With a significant portion of baby boomers preparing to renovate their homes, Lowe's can tap into this demographic.
Threats
Threats to Lowe’s include cybersecurity risks and strong competition, particularly from Home Depot. Economic recessions can lead to decreased consumer spending on non-essential improvements, further challenging Lowe's market position.
SWOT Matrix
S.W.O.T. Matrix
| External | Internal |
|---|---|
| Strengths | Weaknesses |
| Opportunities | Threats |
Recommendations
Based on the SWOT analysis, recommendations include expanding stores internationally and enhancing online presence. Positioning Lowe's as a leader in DIY supplies while improving supply chain logistics can strengthen the business model.
Conclusion
In conclusion, Lowe’s has a robust brand with significant market presence and opportunities for growth. By adapting to threats and leveraging strengths, more achievements are within reach.
References
- Lowe's Companies, Inc. (2020). Fort Mill: Mergent.
- Companies, L. (2020, August 19). Lowe’s reports second-quarter 2020 sales and earnings results. PR Newswire.
- "Lowe's Companies Inc Annual Shareholders Meeting - Final." Fair Disclosure Wire, 29 May 2020.
- Lowe's closes its Mexico home improvement stores. (2019, April 11). Retrieved from Our History.
- Menards. (n.d.). Retrieved from [Menards website]
- Mexico News Daily. (2018). [Source reference]
- Market Research Report (2019). [Source Research Report]
- Ellison, M. R. (2020). Annual Shareholders Meeting remarks.
- J.D. Power. (2019). Home Improvement Customer Satisfaction Survey.
- Global Home Improvement Market Analysis (2020). [Industry Report]