Busi 400 Individual Case 2
CASE ANALYSIS
Heather Lee
Busi 400
3/2/15
Should Lowe’s expand into Canada or renew efforts to acquire Rona?
Lowes’s should renew the efforts to acquire Rona instead of expanding into the Canadian market. The Canadian consumers already are aware of the stores operated by Rona and this will help ensure they use them. Rona has the advantage by have a combination of large and small stores spread throughout Canada this alone will help cut cost greatly for Lowes if they choose to enter this market. Rona will already know the Canadian laws required for entering the market and this will help protect Lowes in the long and also save time and money.
Would you recommend Lowe’s enter the Australian market with 150 new stores as currently planned in an attempt to match Ace’s international presence?
If Lowe’s wishes to stay competitive with Ace’s international market they would have no choice but to enter the Australian market and move forward with the new 150 stores. Ace is known for having a market based on the consumers understanding and approval of their products and services. If Lowes wants to compete they will need to persuade the consumers they care about their understanding and use of the products as well. Having the new stores will spread consumer awareness and offer a better chance at expanding the customer base.
Would you recommend Lowe’s reduce the size of its stores to match Home Depot, and even smaller stores such as Ace and True Value? Yes it would be a good idea for Lowes to cut down on cost in general. The costs to operate these large stores are higher because they require more employees, higher utilities and more products on hand to fill the spaces. Ace and True value use smaller areas so the general overhead cost is kept lower from the beginning. By reducing the store size will free up money to use in other areas and help the bottom line of profits for Lowes. Having smaller stores can also lead to better one on one with
Heather Lee
Busi 400
3/2/15
Should Lowe’s expand into Canada or renew efforts to acquire Rona?
Lowes’s should renew the efforts to acquire Rona instead of expanding into the Canadian market. The Canadian consumers already are aware of the stores operated by Rona and this will help ensure they use them. Rona has the advantage by have a combination of large and small stores spread throughout Canada this alone will help cut cost greatly for Lowes if they choose to enter this market. Rona will already know the Canadian laws required for entering the market and this will help protect Lowes in the long and also save time and money.
Would you recommend Lowe’s enter the Australian market with 150 new stores as currently planned in an attempt to match Ace’s international presence?
If Lowe’s wishes to stay competitive with Ace’s international market they would have no choice but to enter the Australian market and move forward with the new 150 stores. Ace is known for having a market based on the consumers understanding and approval of their products and services. If Lowes wants to compete they will need to persuade the consumers they care about their understanding and use of the products as well. Having the new stores will spread consumer awareness and offer a better chance at expanding the customer base.
Would you recommend Lowe’s reduce the size of its stores to match Home Depot, and even smaller stores such as Ace and True Value? Yes it would be a good idea for Lowes to cut down on cost in general. The costs to operate these large stores are higher because they require more employees, higher utilities and more products on hand to fill the spaces. Ace and True value use smaller areas so the general overhead cost is kept lower from the beginning. By reducing the store size will free up money to use in other areas and help the bottom line of profits for Lowes. Having smaller stores can also lead to better one on one with