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What Is Lowe's Diversification Strategy

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When major retail stores look to find more ways to grow the business and the profits for the shareholders, it normally looks to see if it can work in an international market. If it is too truly make its market on the international market the company must determine if their type of business will work in the various parts of the world that it is looking to join. The risk could be large, but the reward could be even larger thus justifying the move to sell internationally. While the international market could gain new customers, Lowe’s must determine its strategic approach to growing, decide if it’s a good fit for the target area, and develop its diversification strategy to meet its needs. Currently, Lowe’s only international market places would …show more content…

The ability for customers to shop in one store to get all the materials needed to build or repair something for their home or business makes it the best for any location. Lowe’s has grown by working with contractors so that they may shop with them to gain all the material needed to perform the diverse types of work that they do. Lowe’s has made it possible for those contractors the ability to open accounts with them so that they do not have to worry about paying for everything they need up front since they will be in and out of the stores many times each day. This would be a way to grow the local communities within the international markets since it could be something that they are not accustom to with the local home improvement …show more content…

The option for buying these companies allows for the company to be very competitive in other markets around the world if they continue to bring value to the area. If they go into a country and take over the businesses that the locals know and turn it into something that they do not wish to shop in could show other countries that they are interested in to turn them down. Lowe’s could grow their international presence if they do good by the companies that they would take over and ensure that the customers they service are given the best products and services that they are accustom to and then some. When looking at companies that have had failure in international markets, Lowe’s competition Home Depot tried its hand at doing business in China (Fung, 2014). Home Depot came from America with the same type of thinking that customers wanted to do their own projects to improve their homes, but instead failed because Chinese people are more adapting to having other people do the work for them (Fung, 2014). If Lowe’s goes into an international market without doing its research on how the culture is, then they too would

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