Lowe’s SWOT Analysis Analyzes, Lowe’s is a Fortune 500 American company that sells home improvement, hardware and appliance items. Founded in 1946 in North Wilkesboro, North Carolina, it’s the second largest hardware chain both in the U.S. and around the world. It also happens to be the shopping haven for the do-it-yourself market.
Lowe’s At A Glance – Lowe’s SWOT Analysis
Company: Lowe’s Companies, Inc.
Founders: Carl Buchan
Year of establishment: 25 March 1921, North Wilkesboro, North Carolina, United States
CEO: Marvin Ellison
Headquarters: Mooresville, North Carolina, United States
Employees (Dec 2020): 300,000
Ticker Symbol: LOW
Annual Revenue (Dec 2020): US$90 Billion
Profit net income (Dec 2020): US$3.02 Billion
Products & Services: Home improvement | Hardware and appliance items
Company Website: www.lowes.com
Top Lowe’s Competitors
Lowe’s SWOT Analysis – SWOT Analysis Of Lowe’s
SWOT Analysis Of Lowe’s analyzes the brand based on its strengths weak points, weaknesses, opportunities, and threats. With Lowe’s SWOT Analysis it is clear that the advantages and disadvantages are internal factors, while threats and opportunities are external elements. Here we are going to talk about Lowe’s SWOT Analysis. Below Is The Detailed SWOT Analysis Of Lowe’s.
Lowe’s Strengths – Lowe’s SWOT Analysis
- A strong distribution network – Through the years, Lowes has developed a solid distribution network that has the capacity to reach the majority of its market.
- Solid Brand Portfolio Through the years, Lowes has made investments in building a solid brand portfolio. This SWOT study of Lowes simply confirms this fact. The brand portfolio is very beneficial if the company would like to diversify to new categories of products.
- Highly successful with Going To Market methods for their products.
- Proven track record of creating new products , product innovations and products.
- High Returns on Capital Investment Good Returns on Capital Expenditure Lowes has been relatively successful in the developing new projects. It has also produced good returns on capital expenditures by creating additional revenue streams.
- Automating processes has made it possible to maintain the same quality of Lowes products and allowed the company to expand and down according to the demands of the market.
- A high level of satisfaction with customers The company through its dedicated department of managing customer relationships has been able to reach an excellent level of satisfaction with its current customers as well as high brand loyalty among prospective customers.
- Solid Free Cash Flow Lowes has strong cash flows, which provide funds to the business to grow into new ventures.
Lowe’s Weaknesses – Lowe’s SWOT Analysis
- It is time to invest more in the latest technologies. With the size of the expansion and the different regions which the company plans for expansion into Lowes must invest more into technology in order to bring processes together across all departments. The investment currently in technology isn’t at in line with the plans of the company.
- A high rate of attrition in the employees – in comparison with other companies in the sector Lowes has the highest attrition rate. They also must spend more than its competitors in training and developing its employees.
- The ratio of profitability and Net Contribution percentage of Lowes are lower than the industry average.
- It is not very successful in merging firms with a different work culture. Like we said earlier, even though Lowes is successful in the integration of small companies, it does have its fair share of failures to join firms with different working style.
- A limited success outside of the core business. Lowes is among the top companies in its field, it has had difficulties in moving to different product lines in its current style of operation.
- Days inventory is higher compared to competitors, which makes the company need to raise capital to invest into the channel. This could affect the growth rate of Lowes
- The structure of the organization is in line with the present business model and limits expansion into other product categories.
Lowe’s Opportunities – Lowe’s SWOT Analysis
- The growth in the market could result in a diminution of the advantage of competitors and allow Lowes to boost its competitiveness compared to other competitors.
- The opening of new markets due to a government agreement the introduction of a new technology standards and a freedom of trade agreements has given Lowes an opportunity to gain entry into the market of a new and emerging.
- New customers come from the online channels. Over the last couple of years, the company has poured a large amounts of money in the platform online. This investment has led to the opening of a an entirely new channel of sales for Lowes. In the coming years, the company will benefit from this opportunity by understanding the needs of its customers better and meeting their needs with massive data-driven analytics.
- Lowering the cost of transportation as a result of lower shipping costs can lower the price of the products of Lowes and provide an opportunity for the business to improve its profit margins or pass its benefits to customers in order to increase their market share.
- A steady flow of cash provides opportunities to invest in related product segments. If there’s more cash available in the bank the company could invest in the latest technologies and also in new product segments. This could open up a new window of opportunities for Lowes in different product segments.
- The new tax policy could dramatically alter the way of business, and could create new opportunities for established players like Lowes to improve its profit margins.
- Government green drive also offers the door for purchasing Lowes products from the state and federal contractors for the government.
- The company’s core competencies could be successful in different product fields. An example of this could be the case of GE health research has assisted it in the development of better oil drilling equipment.
Lowe’s Threats – Lowe’s SWOT Analysis
- The imitation of counterfeit and inferior product could be a risk to the Lowes’s brand, especially in emerging markets as well as market with low-income.
- An increasing trend of isolationism within the American economy could trigger similar responses from other governments which could negatively affect international sales.
- The shortage of skilled workers in certain markets around the world is an obstacle to the an increase in the profits for Lowes in these markets.
- Innovative technologies developed by a competitors or the disruptive market player could pose a major risk to the industry in the near-term and long-term.
- The growing strength of local distributors can pose a threat to certain markets since the competitors are paying higher prices to local distributors.
- A lack of regular supply of novel products. Over time, the company has created a variety of items, however they are typically a reaction to the innovations of other companies. Additionally, the availability of new products isn’t regularly occurring, which results in large and low variations in sales figures over time.
- A rising price for raw materials can be danger to Lowes profits.
- Pay increases, especially those like $15 per hour, and rising prices in China can put serious pressure on the profits of Lowes
Lowe’s SWOT Analysis Template
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