Company Presentation Lowe’s Home Improvement (LOW) Joanna Andrews November 12, 2012 BUSI 1200 Strategy First Agenda • Overview BUSI 1200 Strategy First Agenda • Overview • Product BUSI 1200 Strategy First Agenda • Overview • Product • Competition BUSI 1200 Strategy First Agenda • • • • BUSI 1200 Strategy First Overview Product Competition Performance Agenda • • • • • BUSI 1200 Strategy First Overview Product Competition Performance Summary Agenda • • • • • BUSI 1200 Strategy First Overview Product Competition Performance Summary ABC Company Overview BUSI 1200 Strategy First Overview • History • Founded: 1946 by Lucius Lowe • Dream: To extinguish wholesalers - deal only with manufacturers • Original name: North Wilkesboro Hardware Company (NC) BUSI 1200 Strategy First 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 1200 Strategy First ABC Company Industry and Products (15 Product Categories) BUSI 1200 Strategy First Home Improvement Industry & Product Kobalt® BUSI 1200 Strategy First Harbor Breeze® allen+roth® Task Force® 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 1200 Strategy First Lowe’s Commercial BUSI 1200 Strategy First http://www.youtube.com/watch?v=jK6w1_D1GdE ABC Company Competition BUSI 1200 Strategy 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 1200 Strategy First Competition (Cont’d) Strategy Customers #1 – DIY programs Low prices Children’s programs My Lowe’s Card; support Advanced IT Online shopping BUSI 1200 Strategy First ABC Company Performance BUSI 1200 Strategy First Performance FORTUNE ® 100 company Public sent 1961 BUSI 1200 Strategy First Performance (Cont’d) – Competitor Comparison BUSI 1200 Strategy 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 1200 Strategy First Social Responsibility (Cont’d) Partnerships: Habitat for Humanity American Red Cross Rebuilding Together (home rehabilitation program) BUSI 1200 Strategy First ABC Company Summary BUSI 1200 Strategy 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 1200 Strategy 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 1200 Strategy First ABC Company Questions? BUSI 1200 Strategy First Sources BUSI 1200 Strategy First 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/incomestatement/is.html?t=LOW&culture=en-US http://finance.yahoo.com/q/co?s=LOW+Competitors http://blogs.findlaw.com/courtside/2009/09/lowes-workersovertime-case-settled-for-295m.html blogs.findlaw.com/courtside/2009/09/lowes-workers-overtimecase-settled-for-295m.html http://www.youtube.com/watch?v=jK6w1_D1GdE http://responsibility.lowes.com/environment/our-programs/ourmission/ BUSI 1200 Strategy First