Strategic Audit - Lowe's Companies, Inc Term Paper

Strategic Audit - Lowes Companies, Inc - Term Paper Examplei. Customers are increasingly expression at Smart Technology, such as one-touch programming for spas and baths heated, self-cleaning and self-closing toilets washers and dryers with humidity sensors and steam cycles, which provides an opportunity for Lowes to sell product upgrades.ii. China is providing a potential market, as that country has clean laws that ease restrictions on buying homes. Moreover, homes in China do not come equipped with basics, such as flooring, fixtures and appliances, so the Chinese people must purchase these items when they buy a new home, which provides avenue for Lowes if they settle to expand into that market.a. Rivalry high Lowes continues to be a distant second to Home store in terms of overall revenue. Price competition is keen, and rivals continue to offer new services and new products to attract customers.b. Potential entry of new competitors is low to moderate There is limited customer loyalty, expectant requirements to enter the industry are high, industry growth rates have been slow because of the recession.c. Competitive pressures from replenishment products is moderate-high substitutes would include stores that are outside of the home improvement industry, such as Wal-Mart and Costco brand-name stores, such as Maytag Appliances and Sherwin-Williams key fruit and trained professionals, such as plumbers and electricians.i. Pros since small, locally-owned businesses are the main threat to Lowes, by partnering with these businesses and providing products and services, they get a valet de chambre of that pie as well. Small businesses probably need the cash infusion, so everybody wins.ii. Cons Increased R&D be are risky, as there is no telling how the green market will be in the future. It might be a fad, or might be long-lasting. Also, the costs for these items will probably summation with