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Lowe's (SWOT Analysis)

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“SWOT is an acronym for the internal Strengths and Weaknesses of a firm and the environmental Opportunities and Threats facing that firm. SWOT analysis is a widely used technique through which managers create a quick overview of a company’s strategic situation. The technique is based on the assumption that an effective strategy derives from a sound “fit” between a firm’s internal resources (strengths and weaknesses) and its external situation (opportunities and threats). A good fit maximizes a firm’s strengths and opportunities and minimizes its weaknesses and threats. Accurately applied, this simple assumption has powerful implications for the design of a successful strategy.”

Lowe's 

Lowe's Companies (Lowe's) is the second largest home improvement retailer in the world. Lowe’s strong market position enables it to attract more customers in new as well as existing markets, thus gaining an edge in the home improvement market. However, a weak housing market coupled with the slowing US economy will sharply reduce the demand for home improvement products and hamper Lowe’s business.

Strengths, Weaknesses, Opportunities and Threats (SWOT)

Location of Factor

TYPE OF FACTOR

Favorable

Unfavorable

Internal

Strengths

  • Strong market position
  • Strong brand portfolio
  • Strong distribution network

Weaknesses

  • Product recalls
  • Gender discrimination lawsuit

External

Opportunities

  • Expanding international operations
  • Growing online retail spending

Threats

  • Economic slowdown in the US
  • Slowdown in the US housing market
  • Increased labor wages in the US
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