BUSI 1200Strategy First

Company Presentation

Lowe’s Home Improvement (LOW)

Joanna Andrews November 12, 2012

BUSI 1200Strategy First

Agenda

• Overview

BUSI 1200Strategy First

Agenda

• Overview• Product

BUSI 1200Strategy First

Agenda

• Overview• Product • Competition

BUSI 1200Strategy First

Agenda

• Overview• Product • Competition• Performance

BUSI 1200Strategy First

Agenda

• Overview• Product • Competition• Performance• Summary

BUSI 1200Strategy First

Agenda

• Overview• Product • Competition• Performance• Summary

BUSI 1200Strategy First

ABC Company

Overview

BUSI 1200Strategy First

Overview

• History• Founded: 1946 by Lucius Lowe• Dream: To extinguish wholesalers - deal only with manufacturers

• Original name: North Wilkesboro Hardware Company (NC)

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History (Cont’d)

• Corporate facilities: Mooresville & Wilkesboro, NC

How are they doing? 2nd largest home improvement retailer worldwide Operations in Canada & Mexico 1,745 stores & 248,000 employees

BUSI 1200Strategy First

ABC Company

Industry and Products(15 Product Categories)

BUSI 1200Strategy First

Home Improvement Industry & Product

Kobalt® allen+roth®

Harbor Breeze® Task Force®

BUSI 1200Strategy First

Home Improvement Industry & Product (Cont’d)

Core competencies: Diverse brand differentiation – private

brands Gatehouse® (key locks, door knobs),

Lowe’s Garden Club Select™, etc. Customer focus Removal of wholesaler

BUSI 1200Strategy First

Lowe’s Commercial

http://www.youtube.com/watch?v=jK6w1_D1GdE

BUSI 1200Strategy First

ABC Company

Competition

BUSI 1200Strategy First

Competition

• Competitors: The Home Depot, Inc.; Ace Hardware Corporation; The Sherwin-Williams Company

• Competitors products• HD & Ace Hardware: Appliances, décor, flooring, paint, bath, power equipment; etc.

• SHW: Paint

BUSI 1200Strategy First

Competition (Cont’d) - Strategy

Customers #1 – DIY programs Low prices Children’s programs My Lowe’s Card; support Advanced IT Online shopping

BUSI 1200Strategy First

ABC Company

Performance

BUSI 1200Strategy First

Performance

FORTUNE ® 100 companyPublic sent 1961

BUSI 1200Strategy First

Performance (Cont’d) – Competitor Comparison

BUSI 1200Strategy First

Social Responsibility & Environmental Sustainability

1,660 education projects 2, 396 community improvement

projects Community: Aided in creating a

greenhouse for the Sumter County Career Center in Sumter, S.C. ($10,000 grant)

Education: Presented financial and creative aid to middle school students in Charlotte N.C. to renovate the student lounge (Lowe’s Heroes Giving Coast to Coast)

BUSI 1200Strategy First

Social Responsibility (Cont’d)

Partnerships: Habitat for Humanity American Red Cross Rebuilding Together (home

rehabilitation program)

BUSI 1200Strategy First

ABC Company

Summary

BUSI 1200Strategy First

SWOT Analysis

Strength:- Private brands- Brand differentiation- Quality customer service

Weakness: - Past class-action lawsuits

about pay system- Number #2 in leading

home improvement arena- Product recalls

Opportunities:- Environmental sustainability

plans- Online shopping (My Lowes

Card)

Threats:- Economy- Housing market

BUSI 1200Strategy First

Summary

• What are the company’s prospects?• Despite the company’s decreasing positivity in its financial records and number two position in the world-wide and national home improvement chain, I believe the company will spring forward in the coming years. Its advantages in customer service and popular private brands gives the company an edge over its competitors.

BUSI 1200Strategy First

ABC Company

Questions?

BUSI 1200Strategy First

Sources

http://media.lowes.com/about-lowes/ http://finance.yahoo.com/q/co?s=LOW+Competitors http://www.homedepot.com/ http://www.acehardware.com/home/index.jsp http://financials.morningstar.com/income-statement/is.html?t=LOW&culture=en-US http://finance.yahoo.com/q/co?s=LOW+Competitors http://blogs.findlaw.com/courtside/2009/09/lowes-workers-overtime-case-settled-for-295m.html blogs.findlaw.com/courtside/2009/09/lowes-workers-overtime-case-settled-for-295m.html http://www.youtube.com/watch?v=jK6w1_D1GdE http://responsibility.lowes.com/environment/our-programs/our-mission/

BUSI 1200Strategy First