Sunday, August 25, 2019

Home depot in chile Case Study Example | Topics and Well Written Essays - 500 words

Home depot in chile - Case Study Example Home Depot adopted the international strategy, when it entered the Chilean market in 1998. As part of that strategy, it tried to implement the same practices and marketing strategies, which they carried out in its United States operations. In the case of international strategy, the firm transfers its core competencies and operational strategies to the foreign subsidiary. (Aswathappa 355). One of the key operational strategies of Home Depot in U.S. is sizably selling Do-It-Yourself (DIY) products, and they transferred the same to Chile. Instead of multidomestic strategy (which focuses on customizing the product according to the local market) and global strategy (which focuses on selling a product based on a globally formulated strategy), Home Depot adopted international strategy. As it was its first market expansion out of North America, Home Depot did not have any global strategy. Also, they avoided the multidomestic strategy and did not customize its products according to the Chilea n people. So, in line with the international strategy, Home Depot put more of DIY products on its shelves. However, this strategy of transferring the same practices to Chile did not work first because Chilean people were less willing than in the United States to repair their houses by themselves. b.

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