Continual Improvement at Lowe’s Companies, Inc. Essay

1109 Words 5 Pages
In the early 2000’s Lowe’s was rapidly intensifying its presence nationwide. The company carried a varied assortment of home improvement products and catered to the needs of retail as well as commercial business customers. Lowe’s expanded their reach by acquiring a 41-store chain, Eagle Hardware and Garden, and engaging in a strategic alliance with HGTV to obtain a more profound existence in their market (Rouse, 2005). By 2004, Lowe’s operated almost 1,000 stores with plans to continue expansion across the nation (Rouse, 2005). The company has a core competency in helping customers meet their home improvement needs at a low price. In order to use this core competency to gain a competitive advantage, the company has focused on key …show more content…
Lowe’s designed their stores to be the opposite of competitors such as Home Depot. The spacious and well-lit Lowe’s stores appealed to potential customers that may not regularly visit warehouse-type hardware stores, such as women (Rouse, 2005). Furthermore, to increase their current customer experience and satisfaction, the company sought to enhance their installed and special order sales as well as modify their programs to be better equipped to handle commercial business customers. To do this, Lowe’s created an installed sales program where customers were able to select the design and materials used for their project and then hire Lowe’s professionals to complete the installation. In addition, specialty kiosks were set up around Lowe’s stores to educate customers and simplify special order home improvements. Special orders enabled Lowe’s to offer an assortment of products without having to invest the money up front in inventory (Rouse, 2005). To increase their commercial business customer base, the company began to offer professional quality materials and initiated commercial financing programs. Their logistics strategy was another area of strategic importance. At the center of Lowe’s logistics strategy was their desire to find the most efficient way to stock their shelves with an assortment of products (Rouse, 2005). Lowe’s operated ten regional distribution centers…