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What Is Lowe's Economic Factors Affecting Home Development Business

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A marketing plan is essential for every organization if at all it has to succeed in its operations. Irrespective of how a marketing plan is organized, the marketing plan elements must be direct to the point and easily understood by all the stakeholders. A marketing plan is vital in providing a clear direction that an organization should follow in the marketing efforts in future. Lowe’s Companies is cited as the second largest homes retailer globally. Notably, the company operates a total of 1234 stores which are located in around forty-nine states. In fact, this represents over one hundred and forty square feet retailing space (Hitt, Ireland, & Hoskisson, 2009). A few years beck, the company operated only three hundred stores which amounted …show more content…

On the other hand, the organization gathers data with regard to the external environment, the competitors and itself (Lesca, 2013). There are various economic factors that affect the home development business. One of these factors is the interest rates. The company, like any other organization in the housing business, Lowe's is very susceptible to changes in the rates of interest. Notably, rise of the rates of interest result to the housing industry slowdown. The company has faced numerous struggles due to the mortgage crisis in the United States leading to the sales decline. The other economic factor that has resulted in slow growth of the company is the economic market downturn in the United States. The second environmental factor that has influenced Lowe’s Companies it technological changes. The pace at which the change in technology takes place affects the operations of every business organization. The application of social media is one of the technological factors that have led to the growth of the organization. The company has now turned to the use of the internet to conduct its marketing activities. The company also banks on mobile technology to reach more

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