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: “China’s Home Improvement Market: Should Home Depot Enter or Will it Have a Late-Mover (Dis) advantage?” (Required Case Questions)
- Provide a detailed analysis of the firm’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 Depot’s strengths and weaknesses.
- Based on the materials available to you, identify Home Depot’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.