The Home Depot is considered to be the world’s largest home improvement store. It is a US company with its retail stress in US, Mexico and Canada. The company’s 12.6% of the total business comes from the retail stores in other international locations. The company tried to penetrate Chinese market but it was a total disaster and eventually the company had to wrap up from China. There have been a number of companies which tries to succeed in China but all in vain. One of such companies was Home Depot (Burkitt, 2012). As everybody knows that the Americans love to do their work themselves but it is reverse in China. In China people prefer somebody else to complete the work for them. The analysis of the case study throws light on various things which went wrong.
Analyzing the case data (including SWOT)
The case study clearly portrays how Home Depot failed to establish itself in China. The major parameters which made company fail were lack of market information, do it yourself aspect, the management team, inability to adapt, failed retail tactics and the downfall of the Chinese economic market. The SWOT analysis of the company is as follows:
The company has a strong market position and is considered as the leader in the home improvement products.
The company has a balanced brand mix.
The company has competitive price in the market.
The company’s inability to adapt to the local markets.
The company could not assess the culture of the Chinese people.
Poor knowledge about Chinese market
The company can expand in many other international locations
The company can strengthen its online presence
Entry barriers are low in Chinese market
The changing preferences of the local people.