Strength
Strong and efficient distribution system
One of the strength that Lowe’s possess is the strong and efficient distribution system. Lowe’s operates 14 regional distribution systems. They also have 15 flatbed distribution centres for lumber, building materials and other long-length items. This allows Lowe’s to efficiently distribute 75% of its merchandise to its sores. Its customers can make a large scale order at once and get discount. This makes them to choose Lowe’s over others.
Weakness
Lack of control over product manufacturing
Lowe’s obtain its stock from around 7,000 domestic and foreign suppliers. Therefore, the control over product quality is limited and Lowe’s is also vulnerable to risks related to foreign policies and the financial stability of those countries.
Opportunities
Expansion in international market
The opportunity for international growth is very large. China is a good market for international expansion. This is because China has a population of more than one billion and a rising middle class of the people. Besides, it is one of the highest rates of home ownership in the world and ever strengthening property-laws.
Threats
US Housing Market
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Sales in the past few years have been on the decline as many homeowners faced foreclosure. During 2006, existing home sales dropped by more than 8 percent, representing the worst decline in 17 years. In the fourth quarter— during which the housing market was hit the hardest—Lowe’s experienced an 11.5 percent drop in year-by-year profits. During this same period the Company’s revenue fell by 3.7 percent, and same-store sales—a key metric for determining performance—declined by 5.3 percent. The US Census Bureau reported total construction spending in the US of $842.1 billion in June 2012 compared to $1,149.4 billion in June