Home Depot in Chile
Home Depot in Chile: Case study * Constanza Bianchi<img alt="Corresponding author contact information" src="http://origin-cdn.els-cdn.com/sd/entities/REcor.gif">, <img src="http://origin-cdn.els-cdn.com/sd/entities/REemail.gif" alt="E-mail the corresponding author"> * Escuela de Negocios, Universidad Adolfo Ibáñez, Presidente Errazuriz, 3485, Las Condes, Santiago, Chile * http://dx.doi.org/10.1016/j.jbusres.2005.09.013, How to Cite or Link Using DOI * Permissions & Reprints
Abstract
Retailing is rapidly becoming a global industry and many retailers are expanding to foreign markets. However, some retailers successful in their home countries have failed in emerging markets such as Chile. A case study of the failed operation of Home Depot in the Chilean market helps in understanding why retailers do not succeed in all international markets. This case study is based on expert and consumer interviews, and analysis of secondary sources such as the local press and company reports. The main objective is to assess the role of the foreign environment on the performance of international retailers, and the main mistakes made by internationalizing firms.
Keywords * Internationalization; Mistakes; Chile; Retailing; Home improvement
1. Introduction
In 2001, Home Depot became the largest home improvement retailer of the world. After being successful in Canada, their objective was to implement the same ‘three-legged stool’ format in other markets. Assortment, price and service, along with community support were seen as the key formula for success in international markets. However, after three years of operation and huge losses in Chile, the company withdrew form the market. What went wrong in Chile? Which were the main mistakes of Home Depot? How did the host environment affect the performance of Home Depot in Chile?
2. Home Depot Inc.
Home Depot is the world's largest home improvement retailer, selling a broad assortment of
Abstract
Retailing is rapidly becoming a global industry and many retailers are expanding to foreign markets. However, some retailers successful in their home countries have failed in emerging markets such as Chile. A case study of the failed operation of Home Depot in the Chilean market helps in understanding why retailers do not succeed in all international markets. This case study is based on expert and consumer interviews, and analysis of secondary sources such as the local press and company reports. The main objective is to assess the role of the foreign environment on the performance of international retailers, and the main mistakes made by internationalizing firms.
Keywords * Internationalization; Mistakes; Chile; Retailing; Home improvement
1. Introduction
In 2001, Home Depot became the largest home improvement retailer of the world. After being successful in Canada, their objective was to implement the same ‘three-legged stool’ format in other markets. Assortment, price and service, along with community support were seen as the key formula for success in international markets. However, after three years of operation and huge losses in Chile, the company withdrew form the market. What went wrong in Chile? Which were the main mistakes of Home Depot? How did the host environment affect the performance of Home Depot in Chile?
2. Home Depot Inc.
Home Depot is the world's largest home improvement retailer, selling a broad assortment of
References: * * Marcus and Blank, 1999 * Time Business Random House, New York, NY (1999) *