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PESTEL Analysis of Lowe’s
This PESTEL Analysis of Lowe’s will help to unearth the company’s main factors, such as political, economic, social, technological, environmental, and legal. These factors affect its business in the competitive market. Lowe’s is a big American store that sells things to help make your home better. They have lots of shops in the United States, and their main office is in Mooresville, North Carolina.
Lowe’s has 306 stores and they were expecting a tough fight with their big competitor, Home Depot. They were figuring out how big their new stores should be and what things they should sell in them. They were also thinking about how this would affect their advertising strategy. Here’s the detailed PESTEL Analysis of Lowe’s.
Political Factors | PESTEL Analysis of Lowe’s
- Lowe’s can do well when the government is fair, clear, and not changing all the time. If the country’s rules and systems that support democracy get stronger, it can make things clearer and reduce dishonest actions like corruption.
- Based on what we read in Lowe’s case study, we don’t believe the country will likely go to war with a nearby country.
- The way the government makes rules stays pretty much the same when a new government comes in. Also, all the different political parties’ governments follow the agreements made by the governments before them.
- The country usually follows the promises it makes in agreements with other countries around the world. When different political parties take charge, they also keep following past agreements, which keeps the rules and laws the same.
- When it comes to business choices, the country’s courts can make their own decisions, mostly without interference. Businesses might run into issues when there’s a conflict between what’s good for the public and someone’s private technology, similar to the situation in South Africa.
- The national and local governments are spending more money than they have, which helps the economy grow quickly for a short time. But this might also make prices go up in the middle of a longer time. The national government’s bonds are seen as a good investment.
- The country’s political system looks steady. Lowe’s can plan their strategies knowing that the politics in the country are not changing a lot.
- There are many government offices, which is good because it means one office won’t put too much pressure on you. However, the downside is that it takes more time and money to get things done and get the approvals and certificates you need.
Economic Factors | PESTEL Analysis of Lowe’s
- When we look at how much extra money the government is putting into the economy compared to the past ten years, the prices of Lowe’s stuff and things in general haven’t changed much in the US. The company needs to remember that when the US government spends more money than it has in an up-and-coming country, it can cause prices to go up a lot and make the country’s money lose its value.
- More and more of the economy is about services like restaurants and haircuts, and less is about making things or farming.
- Some companies lost money in recent years because of currency problems in Argentina, Brazil, and Venezuela. Lowe’s should be cautious and learn from the past about currency issues before entering new markets. Many US companies also faced losses in Mexico during currency problems there.
- People in the United States are spending more but not making more money, so they’re using credit a lot. This has made it hard for them to save money because they don’t have much left to save.
- If prices keep going up a lot, it might make people not want to buy as many of Lowe’s products. The company might have to keep raising its prices to keep up with rising prices. This could make people less loyal to their brand and have to work hard to control their expenses.
- In the past 15 years, people in this country have been making more money at home, while in the USA, the money people make at home is still not as high as it was in 2007 and hasn’t really gone up since the early 1980s when you consider how much things cost. Lowe’s can use this trend to grow their market and reach new customers by using a special advertising plan.
- When the economy is improving and growing faster, more people want to buy things. Lowe’s can use this trend to sell more stuff to different kinds of customers. They can begin by keeping a close eye on how people are changing the way they shop and what they value.
Social Factors | PESTEL Analysis of Lowe’s
- How much a company cares about health and safety can show in the quality of their products and how they make things. Lowe’s is very strict about health and safety, so in new markets, it might need to compete with companies that don’t spend as much on these things, and that can make it harder to keep costs low.
- One important thing to think about when trying to figure out what people will want to buy in the future is how many people are getting older. In places like the USA and EU, there are more older folks, so products that they like will become more popular. Lowe’s should consider these trends when making new products and adding things that older people like. Since older people might not like technology, less fancy products might be a good idea.
- The way society arranges who’s in charge and what’s considered normal also affects how much and what people buy. In places where there are clear levels of authority, the people at the top usually make the big decisions.
- Around the world, people have different views about how much they respect authority. In Asia, people tend to show a lot of respect, but some folks like to question it in the Western world. Before Lowe’s starts a new marketing campaign, they should study how people in that area feel about authority.
- The amount of education people have can affect the kind of jobs they get and how much money they make. More education usually leads to better jobs, more money, and the ability to buy fancier things.
- Because of recent events like Brexit and the situation at the United States Southern border with immigrants, how people feel about immigration is being talked about a lot. Lowe’s should be good at dealing with this touchy subject in their operations.
Technological Factors | PESTEL Analysis of Lowe’s
- Lowe’s can use digital technology to make things work better and more honest in the local economy and reduce corruption.
- When a lot of money goes into developing technology, it’s more likely to create a self-sustaining system that encourages new ideas. Lowe’s can use this to attract really talented people for their business.
- Since online shopping is really important for Lowe’s, they should check how well the internet and technology work in a new place before starting their business there.
- Lowe’s should look at how technology can make it easier for the people they work with to get their supplies. This can make things clearer and give them more options in their supply chain.
- Before entering a new market, Lowe’s should consider how well intellectual property rights are respected.
- Lowe’s needs to determine how much it costs to make things and how many machines are used there. We think that soon, technology will bring big changes to the manufacturing and production industry.
- Lowe’s should check the laws and regulations related to property rights and intellectual property rights that are typical in the United States.
- The United States is not as advanced as China in mobile payments. Lowe’s should figure out what kind of mobile payments people like to use in the local area and base their business plans on that.
Environmental Factors | PESTEL Analysis of Lowe’s
- How can Lowe’s use its budget to invest in renewable energy and make this part of its strategy to stay competitive?
- The rules about the environment set by the government might not be the same everywhere. This can influence many choices Lowe’s makes, like where they put their factories, what they sell, and how they set their prices.
- Lowe’s needs to understand how waste is handled in a potential market and ensure it follows the waste disposal rules.
- Lowe’s needs to consider how climate change affects how they run their business and get their products. For instance, if they can’t quickly change their supply chain, it could create issues if shipments from one area get delayed due to sudden weather changes.
Legal Factors | PESTEL Analysis of Lowe’s
- Lowe’s, as a new company, doesn’t need to be concerned about laws that deal with big companies controlling the market and limiting competition.
- Lowe’s should look into the laws about keeping people safe and healthy in the new country they want to work in. Because different places have different ways of thinking about this, Lowe’s should do some good research before they start there.
- Even if a country has excellent laws, they won’t be very useful until applied quickly. Lowe’s should do some initial research to find out how long it typically takes to finish a legal case in that country, especially when dealing with the specific legal challenges Lowe’s might face.
- Lowe’s should find out the rules about selling stocks in the new country and what they need to do to get their company listed on a stock exchange in that place.
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