Going Global & Managing Global Businesses Case Study

HOME DEPOT IN CHINA

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Abstract:
Home Depot (HD) was the world's largest home improvement speciality retailer and the second largest retailer in the US after Wal-Mart. HD was also the world's largest do-it-yourself (DIY) group. In China, due to rapid urbanisation, the home improvement market was flourishing at a very rapid pace, and included home improvements which could be undertaken by individual homeowners such as:

1. decorating
2. basic electrical work
3. kitchen and bathroom equipment
4. wall coverings
5. floorings. HD projected the China home market at US$50 billion a year and it was growing very fast.

Pedagogical Objectives:

• To market potential of HD is expected to be facilitated by the growing economy
• To limited competitive scope of the Chinese market
• To management counter the fact that their entry in China was a bit late compared to their home improvement rivals.

Keywords : Shanghai Automobile Industry Corporation (SAIC); General Motors Corporation; World Trade Organisation (WTO); Lower tariff; Power train; European bank for reconstruction and development (EBRD); Automobile industry; AvtoVAZ; Communist China; Association of European Business; State council development; North America