Read the case 12 of Home Depot and write a paper, this paper should be 2-3 pages (no more than 3 paper, best be 2 and half pages), single-spaced with one-inch margins all around and 12 point times new roman font, with one inch margins all around. And should include these required Case Questions
Case study: â€œChinaâ€™s Home Improvement Market: Should Home Depot Enter or Will it Have a Late-Mover (Dis) advantage?â€ (Required Case Questions)
- Provide a detailed analysis of the firmâ€™s general environment in China. Highlight the economic segment, demographic segment, political/legal segment, and sociocultural segment.
- Research additional materials (e.g. Case 12). Perform an internal analysis to identify Home Depotâ€™s strengths and weaknesses.
- Based on the materials available to you, identify Home Depotâ€™s strategic options for entering the China market (focus on the available entry modes). Which mode of entry would you have recommended?
Type of Entry
New wholly owned subsidiary
Exporting: High cost, low control
Licensing: Low cost, low risk, little control, low returns
Strategic alliances: Shared costs, shared resources, shared risks, problems of integration (e.g., two corporate cultures)
Acquisitions: Quick access to new markets, high costs, complex negotiations, problems of merging with domestic operations.
New wholly owned subsidiary: Complex, often costly, time consuming, high risk, maximum control, and potential above average returns.