Case 10: Luck Companies: Igniting Human Potential C-115In 2000 a second five-year strategic plan was devel-
oped with a strategic focus on product innovation.
The Architectural Stone Division sought differentia-
tion through new product offerings and began sourc-
ing stone internationally. During this time period the
Architectural Stone Division experienced increasing
levels of competition from other contractor stone yards
as well as big-box retailers such as Home Depot and
Lowes. The management of the Architectural Stone
Division knew that further differentiation was necessary
to remain profitable.
In 2007 the Architectural Stone Division went
through a significant rebranding and name change to
Charles Luck Stone Center. The strategic rebranding
shifted the brand from a contractor stone yard to an
up-scale, design oriented architectural stone center. The
new brand focused on a market of design savvy, afflu-
ent homebuyers. Unfortunately, over the past ten years,
the Charles Luck Stone Center sales were 82% correlated
with housing starts. The housing crisis in 2008 signifi-
cantly reduced Charles Luck Stone Center sales. In 2014,
Charles Luck Stone Center shifted strategies to refocus
on middle to higher-end consumers and added manufac-
tured products to their product mix. With this new strat-
egy, the business unit was rebranded “Luck Stone Center”.
Side Note:
In the early 2000s the Architectural Stone Division sup-
plied granite counter tops and interior surfaces to Home
Depot. However, Home Depot became oversaturated with
lower-end products and demanded lower prices from the
Architectural Stone Division. It was at this point that the
division rebranded and shifted their strategy to concen-
trate only on high-end stone sales and ceased to be one of
Home Depot’s suppliers. Home Depot contracted a new
supplier who was willing to meet their low price demands
but unfortunately was unable to deliver on their order
promises. Home Depot subsequently fired this new sup-
plier and humbly asked the Architectural Stone Division
to come back on as a supplier. The management of the
Architectural Stone Division was no longer interested in
supplying stone to big-box retailers. However, they agreed
to supply Home Depot for 120 days so they had time to
find a new supplier. This decision was driven by the values
of Luck Companies to always treat each customer right
even if it did not fit with their long-term strategies.
Luck Development Partners
Luck Development Partners was founded in 1993 in order
to realize the development potential of the real estateheld by Luck Companies. Each quarry owned by Luck
Companies needs nearly 500 acres to operate efficiently.
Location is also vital to the aggregate industry for the
aforementioned reasons and serves as one of the largest
competitive advantages in this industry. Similarly, the
land development industry is highly dependent on loca-
tion and centrality to population hubs. However, the life
of a quarry is limited to the amount of aggregate reserves
in the ground. The long-range sustainable use of the
land comes in the form of innovative real estate practices.
Developing these land assets allows Luck Companies to
once again gain revenue from their land holdings. Luck
Development Partners creates unique places by integrat-
ing and highlighting natural, historical and environmen-
tal elements into the design of its projects.Har-Tru
Har-Tru is a global leader in tennis court surfacing
and accessories. Har-Tru was originally branded Lee
Tennis Court Products and was founded in the 1950s
by engineer Robert Lee. In 1997 Lee Tennis Court
Products was acquired by longtime partner and sup-
plier, Luck Companies. Two years after this acquisition,
Luck Companies acquired Lee Tennis Court Products’
largest competitor, ISP Tennis Products. Shortly after
this acquisition Luck Companies acquired the manu-
facturing assets of the original Har-Tru material pro-
vider and, finally, bought the Har-Tru brand name, a
surface associated with some of the finest courts in the
world.
In 2013 Har-Tru acquired Century Sports, a retailer
for tennis court equipment based in Lakewood, New
Jersey. Century Sports has been in operation for over 30
years and is the exclusive court equipment licensee of
Wilson sports.
Currently Har-Tru maintains between 85% and 90%
of the U.S. market share for clay tennis courts. The
main competition in the clay tennis court market comes
from companies building non-traditional tennis courts
with clay substitutes. While they are the leader in their
industry, Har-Tru is the smallest business unit of Luck
Companies and in 2014 contributed about 6% to the total
enterprise net sales.History
The Founders Years 1923 to 1964
Luck Stone acquired its first quarry, Sunnyside Granite
Company, Inc. in Richmond, Virginia, in 1923. First year
sales were $22,212 for “chips” and “dust”. These sales were
fueled by the C. S. Luck and Son, which was owned by