MEMORANDUM TO: Isin Guler FROM: Josh Kahn DATE: September 2, 2008 RE: Five Forces Analysis of Lowes The Five Forces framework serves as a tool to assess the attractiveness of an industry. It is not applicable to a specific firm; rather, the Five Forces framework is used to determine the profit potential of an entire industry. Lowes Home Improvement Lowes Hardware Stores compete in the home improvement store industry. This industry offers similar products as specialty hardware stores and nurseries, but offers greater variety of products in a single store. The home improvement stores are differentiated from hardware stores by the high level of customer service they offer. Although the broader industry of hardware stores includes many competitors, the home improvement store industry is quite concentrated between Lowes and Home Depot, which collectively account for 99.6% of the home improvement industry’s market capitalization 1 .
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This document was uploaded on 11/04/2011 for the course BUSI 471 at UNC.