Home Depot In China Case Study

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Individual vignette
Many multinational companies seek to enter the Chinese market with the objectives of significant increase in profit and a large expansion of the market share. However it is not all of the powerful corporations that succeed in the Chinese market and there can be many reasons for this outcome. To name a few of the big corporations who have struggled in China we see Mattel, eBay and Home Depot. In the following vignette I will discuss the business situation of Home Depot an why it failed to enter China.
The failure of Home depot in the Chinese market
In 2006, Home Depot Inc., the world 's largest home improvement chain, entered the Chinese market with 12 stores situated around the big cites of China. The home improvement
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China is a country with 56 different ethnic groups and consumers with a vastly verifying level of income. Their culture, taste, preferences and interpretations are different from those of other cultures; hence succeeding in China requires a thorough insight and the ability to adapt quickly to changes and consumer demands.

Business. (2012). Home Depot’s big box plans for China lost in translation. NBC NEWS. Retrieved October 06, 2014, from http://business.nbcnews.com/_news/2012/09/18/13917655-home-depots-big-box-plans-for-china-lost-in-translation
Carlson, B. (2013). Why big American businesses fail in China. Global post. Retrieved October 06, 2014, from http://www.globalpost.com/dispatch/news/regions/asia-pacific/china/130918/why-big-american-businesses-fail-china
Dalzie, E. (2012). Why Home Depot is failing in China: 4 theories. The Week. Retrieved October 06, 2014, from http://theweek.com/article/index/233489/why-home-depot-is-failing-in-china-4-theories
Insight, C. (2012). Why Western Marketing Strategies Fail in China. Startup China. Retrieved October 10, 2014, from

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