6. Weaknesses
• Lack of Control over Product Quality
• Global Limitations
• U.S., Canada and Mexico only
• Consumer Retention and Brand Loyalty
• Recalls
9. New Mission Statement
Current
We are committed to delivering better
customer experiences across the entire
home improvement spectrum, by pulling
together the best combination of
possibilities, support and value for
customers wherever and whenever they
choose to engage.
New
We are dedicated to providing excellent
customer service by creating a valuable
experience through superior products,
knowledge & resources for all
customers within the home improvement
continuum.
10. New Vision Statement
Current
• We will provide customer-valued
solutions with the best prices,
products and services to make
Lowe’s the first choice for
improvement.
New
• We will strive to provide the best
prices and product proficiency for
the best value, making Lowe’s the
only choice for consumers within
the home improvement industry.
11. Trend Spotting: E-Commerce
• Steadily increasing
• Proliferation in mobile
devices
• 1998-2014: Avg Growth:
27.80%
• Estimated 10.6% of total
retail sales by 2019
12. Trend Spotting:
Data Usage
• From 1997-2014, Exabyte
usage on the Internet has
increased an average of
84.9%
• Expected growth thru 2020
is projected to average
19.18%
• Exabyte: 1 Quintillion bytes
• Internet more accessible
due to Smartphone
popularity
13. Competition
• Lowe’s currently is #2 behind The Home Depot
• Market Share:
• Home Depot- 46.7%
• Lowe’s- 33.8%
• Menard, Inc. 5%
• All Others-14.5%
14. Brainstorming
• Customer Inventory Tracking App
• Search items on smart phone for in-store location
• Expand growth potentials
• Stores in U.S., Canada, Mexico
• Marketable to women
• Partner/Acquire Kingfisher
• Largest European Home Improvement Retailer
• Allow for Penetration into European Market
15.
16. Introducing “Lowe-Bid”
• Interactive Customer/Contractor
Marketplace
• Website
• Mobile App
• Comparable to Priceline
• Allows buyers & sellers to
communicate & negotiate
services
• Partner with Angie’s List for exposure &
information
• Contractor Database imported into
Lowe-Bid systems
• Angie’s List would get a percentage of
profit for partnership
• No membership fees to Lowe-Bid
account users
• More Internet & Mobile app
traffic & usage
17. Lowe-Bid: Customer Value
• Allows customers to post budgets
and project ideas
• Convenience
• Multiple estimates/bids
instantly
• Option to decline bids
• Customer can compare bids
from various local
contractors
• Background
• Specialization
• Professional Certification &
License Verification
• Customer reviews & Feedback
• Service Records
• Better Business Bureau accredited
Companies only
• Allows for customer security &
trust
18. Lowe-Bid: Contractor Value
• Allows contractors to see potential business and offer bids on services
• More bids on potential contracts in less time
• Immediate notification of bid acceptance
• Enables company to delegate resources and schedule more effectively
• All supplies would be purchased from a Lowe’s retail location
• Supply Delivery to job location if booked through Lowe-Bid system
19. Lowe-Bid: Value to Lowe’s
• Capitalize on current technology
• Mobile Phones
• Tablets
• Inventory Impact
• Reduction of Inventory Holding Days
• Current average from 2005-2014: 89.93 days
• Better control of in house stock
• Reduce inventory cost
• Further expand presence in Contractor market segment
• Current Contractor market segment: 30%
20. Cost
• DIY-808 person days * $375 cost/day +
$18,000 Infrastructure= $321,000
• Kinvey-326 person days * $371 cost/day
+ $18,000 Infrastructure=$138,946
• Estimates from question base format
• Complex algorithmic system
