05 Dec LOWE’S 2 Table of Contents

LOWE’S 2

Table of Contents

Table of Contents 1

The Company 2

SWOT Analysis

SWOT Diagram

Strengths

Weaknesses

Opportunities

Threats

Analysis

SWOT Matrix

Recommendations

Conclusion

References

The Company

Lowe’s Inc. is an American retail store that sells home improvement material. According to Lowe’s corporate website, Lowes 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 the place, 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 the company 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 of the 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, it has grown significantly both in revenue and size. As per the year 2020, Lowe’s employs about 300,000 Associates and approximately 2,200 stores located in the United States and Canada. Lowe’s at one time held a portion of the home improvement market in Mexico until 2018 when they decided to cease all operations. According to Mexico News Daily, an anonymous source stated, “Lowe’s shutdown in Mexico is the result of the firm having failed to achieve adequate sales and was unable to compete with competitor Home Depot.”

SWOT Analysis

SWOT Diagram

Strengths

Lowe’s sells a lot of notable brands among its numerous classifications, which assumes a significant function in attracting customers and boosting sales. The appliances category has a brand like Samsung, Whirlpool, and GE, and the tools department have DeWalt, CRAFTSMAN, and Hitachi. Other top brands sold in Lowe’s stores are Stain master carpets, John Deere lawnmowers, and more. The organization consistently adds new brands to its portfolio. Lowes also carries its private brands: Kobalt, Allen Roth, Blue Hawk, Project Source, Portfolio, Garden Treasures, Utilitech, Reliabilt, Aquasource, Harbor Breeze, and Top Choice. When Lowe’s expanded its association with Sherwin Williams, it became the only home improvement center to stock Cabot stains, Purdy paint brushes, Krylon sprays paint, and Minwax stains and finishes.

Lowe’s is continuously working to enhance its omnichannel capabilities to ensure a seamless customer experience. Now that more customers are researching products before purchasing them, they can buy products on the website or the mobile app and choose either in-store pickup, shipping, or home delivery. In-store and contact center purchases have flexible fulfillment options as well, to continue with a seamless experience. While all home improvement centers provide similar products and services, there are minor variations based on the local market. With its In-store Wi-Fi, customers can access information quickly, without wasting time waiting for an associate. Lowe’s website and mobile app provide its customer with continuous shopping, product information, customer reviews, and other information to help its consumers make informed decisions about their purchases. Lowe also has In-store specialists to assist its customers in selecting services and products for their projects. The company’s support center provides its customers with after-sale installation, a plethora of medium to ask questions: social media, phone, chat, email, and mail. Marvin R. Ellison, the CEO of Lowe’s said during its Final 2020 Annual Shareholders Meeting, “We had our best Lowes.com performance probably ever in the first quarter, and that is very consistent with customers’ desires to shop in a touchless environment. We spent a lot of time over the past 18 months modernizing and improving our e-commerce platform …” “As we look forward, we know that retailers must provide customers with options, and we define that as an omnichannel environment…”. As Covid on the rise, In June of 2020 Lowe’s launch Pros JobSIGHT, a video chat service that allows Pros to conduct virtual home visits with customers. Its first step of a $25 million commitment to support small businesses.

Weaknesses

One of the weaknesses of Lowe’s is the lack of physical stores in other countries. Physical stores are critical for the business operation of Lowe’s Home Improvement Company since many customers prefer to visualize the home improvement products they want before making a purchase. The physical stores provide an opportunity to view and compare a variety of options physically to make the correct decision on what to buy. The lack of physical stores in other countries is therefore a weakness for Lowe’s Home Improvement as they are not able to reach more customers. The company loses competitive advantage over other rival companies in the same business that have invested in physical stores.

Lowe’s is a retail business, which