With this, home improvement comes up and there are numerous stores and companies that supply products and advice on how to make one’s home better by installing additional hardware and items to it. This is widely appreciated throughout the world, but in some cases it is only done by contractors based on the economic status of the people involved. One such company that provides these supplies Home Depot which operates across North America. However, attempts to venture into Asia failed miserably when the company attempted to establish itself in China by providing supplies for home improvement through do it yourself antics. Different reasons have cited for this failure, but there is no full consensus on the key causes of the failure of such a large company that was unable to replicate the success of its north American operations in China. This makes it necessary to look into the causes of this failure and how they served to drive the company out of China. Background The history of Home Depot spans over three decades since its inception in the year 1976 in Atlanta Georgia, where the initial Home Depot store was inaugurated in the same year. The main concept of opening the store was to provide comprehensive supplies to all clients who sought after home improvement equipment and provisions in the name of “do it yourself”. This made the company into a di it yourself supply chain across the state of Georgia after the establishment of additional stores. Besides this, there was also the provision of giving advice on home improvement to their clients and other customers purchasing supplies from their stores. With this home improvement target market focussing on do it yourself population types, it supplied partial and full components and products such as building, plumbing and electrical supplies. This is in addition to having a large selection of hand and power tools catering to both customers who preferred the traditional feel of hand tools over electricity powered tools (Miller 2). These also included an assortment of brands for maximum variety that even went beyond convention in regard to stocking gardening tools, where home improvement did not just imply the house or its aspects but the home in totality. The expansion of the store over the years has featured its listing in the New York Stock Exchange and even opening stores to hit a 100 in the year 1989 across all of the United States. Further expansion has gone to an extent of having over 2200 stores across the North American continent ranging from USA, Canada, Puerto Rico, Guam, Mexico and the US Virgin Island, and with these, expansion still continues (“Home Improvement Industry Profile”). With the success of the company across the continent, there were talks of further expansion into the world most populous nation, China. Reasons for the expansion into China was due to the large population that China has and the saturated retail market across the US, which saw the company seek to expand into China. Another factor in consideration was the high amount of competition in China, where economic indicators were supportive of Home Depots expansion into China due to rapid growth of the Chinese economy especially following reforms after Mao’s reign as the Chinese communist leader. As such, the housing market had a lot of potential at the time of the feasibility for Home Depot to expand into China in that most of the houses in China were hardly complete or rather finished in that they needed further addition of features so that clients or home owners are charged with
The Home Depot in Chinese Market.
Do it yourself is a largely American culture that has spread to the rest of the north American continent through popular culture and social factors, as well as economic ones. …
Both the stores play a very vital role of providing service to their customers, in the home improvement market. Since the recession has hindered their plans to expand the current existing stores, they feel that the best way to increase the sales is by the improvement of customer loyalty, which currently does not exist for both the stores.
One of the major barriers in the home furnishing and decorating industry is the high capital requirement. The initial cost required to start a business is too high for the new entrants to afford (Harrison and John). Therefore, it is essential for the company in the industry to operate with contracts to establish credit with a financial institution in the long run.
Lowe's was not only customer friendly but also appealed to women as well as men. It was easy to find what one was looking for and the customer service was quite good. This paper will discuss how Home Depot approached the inevitable culture change that had to occur to compete.
One must also think of whether or not capital can be controlled by the company, and to what purposes the capital is to be used. As mentioned earlier in the report, the greater the capital is, the greater
Its head quarters are situated in Atlanta. The company has grown phenomenally till 2007 but since then its fortunes have been negatively affected by the economic recession. The recession had resulted from the downturn in the housing
Thus, the demands for new and innovative home care products and accessories have become symbols of status and fashion statements. Shultz say that it is the end-users who now control the markets rather than the marketers (Shultz, 2001). It
In a survey performed to US shoppers revealed that 53% of the corresponded preferred Lowe’s compared to 47% of the correspondents liked Home Depot better. The people that preferred Lowe’s claimed the store has better product
There is evidence that customers may prefer one or the other, but they do use both stores, and so their loyalty is not fixed either way. This proves that there is overlap in the appeal of the two stores, and makes them obvious competitors to
The company grew after going public in 1981 and expansion continued across the decade. In 1994, The company expanded to Canada by acquiring Aikenhead. Company went to Mexico by acquiring a total home in 2001. In 2006, Home Depot
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