Lowe's Case Study Essay Example
Executive Summary This general case study on Lowe's will convey the conclusions drawn by our team along with our recommendations on how this company should proceed. As discussed in the introduction (1 A/B) there is one key problem with Lowe's and that is the fact that they are not number one. The introduction further outlines some areas of improvement within the Lowe's company such as maintaining and improving current success, increasing market share, boosting sales growth and offsetting increasing administrative expenses. Emphasis is placed on the importance that Lowe's choose strategies that will meet its objectives of increasing market share and revenues (Lowe's corporate home page, 2004). Beginning in section 2A, it is noted that the marketing mix utilized by Lowe's is similar to that of its primary opposition, Home Depot. Dissimilar to Home Depot, Lowe's maintains an interesting technique in the promotion of products. This may be Lowe's saving grace when it comes to battling for market share against Home Depot and other competitors. Lowe's has a pleasing atmosphere and has increased their likelihood for growth. Competitors in the Lowe's market are up against a strong front as Lowe's continues to demonstrate increasing profits. Market saturation, although a threat, is not a prevailing concern ("How Lowe's Hammers," 2004). When reviewing section 2B it is important to highlight that Lowe's traditional target market (blue collar American families) has been shifting towards the upper-middle class families (MacAyeal, 2004). Likewise the increasing Hispanic population has shown excellent market potential, so much so that Lowe's has taken measures to improve communication and shopping for this market segment (Lowe's President Upbeat on Growth, 2004). External macroeconomic factors, driving the home improvement market, such as a strong housing market, housing turnover, increases in disposable income, improving equity markets and low mortgage rates