Home Depot Essay

1564 Words7 Pages

Introduction Home depot is the largest home improvement retailer in the USA and the second larger retailer in USA after Wall Mart. In only twenty years the company expanded itself in many locations in the USA and in some strategic neibhour countries following the Upsalla model. Nowadays the company manages almost 2,250 sites and employs 371,000 people around the world. The enterprise started its international expansion by entering in Canada in the late 1990’s, then in South-America, in Mexico, in the UK and finaly in China. Basically the US shop model can be define as massives warehouses of approximately 100,000 square feet where 25,000 items are stocked and sold to handyman of the weekend. So the Home Depot model relies on the « Do it yourself » (DIY) approach opposed to the « Do …show more content…

Indeed, China has a completely different culture which is actually older than what we thought, the end of communism is not the starting point of it, indeed the Chinese culture has been cultivated for millenium. Maybe the brownfield FDI wasn’t the right choice and should have done a greenfield one, which might have forced them to go deaper in their market researchs. Home Depot should have been more careful with their money as well, and tryed its model on the Chinese by creating one warehouse at first. So that, it would have been easier to improve the Chinese version of Home Depot by focusing on one shop, instead of being spread between 12 warehouses. In term of organisation and investment, it is easier to reshape one shop few time in year, than twelve. The join-venture with a local partner could have been interesting in order to have more balanced decision regarding the choice of marketing and concept to offer to the