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Lowe's - Term Paper Example

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Lowe’s Companies Inc. BUAD 341, Section, and Meeting Time Date Due Table of Contents Introduction 1 Theme 1 History of the Firm 1 Product Line of the Company 2 Industry History and Analysis 3 United States has experienced booms as well as recessions in the building industry where Lowe’s operates…
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Many of the firms involved in the construction industry underwent through tremendous changes and growth during this period. 3 Major Competitors 3 NACIS Numbers 3 Relative Sales 4 Relative Returns 5 Product Life Cycle 5 Stock Performance 5 Works cited 6 Introduction The main aim of this paper is to analyze Lowe’s performance in terms of products offered, financial performance against major competitors and the industry in general and assets base. Lowe’s, being the second largest home improvement company in the united states, has a number of advantages and disadvantages against the market leader, Home Depot. While drawing the forecast for the company’s performance, this report will make an assumption that industry trends and performance will remain as they were for the past 3 years. Theme The management of Lowe’s company strategically placed the company’s product line to focus on home improvement tools and equipment through a restructuring process that took place in the mid-1940s. Providing a range of home improvement products including name branded products and national branded equipment, Lowe’s home improvement company is the second leading home improvement company in the United States from Home Depot Company. ...
Although the company faced reduced revenues during the 2008 economic downturn, it hopes to recover from the losses made as the construction business gets back on its feet. To keep up with its increased growth and achieve its target of being the market leader, the company needs to restructure its operations, to include a number of products. History of the Firm Lowe’s is the second largest home improvement company in the United States and Canada from home depot company. Currently, Lowe’s holds about 6 per cent of the total home improvement market, translating to about $140 million ("Lowe's Ranks High" 12). The company has had a long history of success, to reach its current 400 stores spread across 24 states in the United States. Initially, Lowes’ concentrated on medium sized markets, with its stores measuring no more than 75,000 square foot. Currently however, the firm builds stores of approximately 100,000 square-foot in medium sized markets and 114,000 square-foot stores in large markets. The first Lowe’s hardware store opened in 1921 in North Wilkesboro, North California. After the death of the founding father, Lucius S. Lowe in 1940, his daughter Ruth, took over the business, but opted to sell it to her brother in the same year. In 1943, Jim took Carl Buchan as his partner. With Carl Buchan as the manager, the store ventured into hardware and building materials. Before this specialization, the company incorporated a range of products such as notions, dry goods, horse tack, snuff, produce, and groceries. In 1949, the company bought a second store in Sparta, North California. The company became an incorporated business in 1952 as the Lowe's North Wilkesboro Hardware, Inc. between 1952 and 1959 with Buchan’s ... Read More
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