“What is International Business and why is it so important?”
International Business is all commercial transactions that take place between two or more countries and it is so important because international and domestic sometimes does not work hand and hand. I believe the best companies to use to measure the international diameters and markets are Fortune 500 companies. Fortune 500 companies are known because of their marketing strategies have lead them into a plethora of international trades and leadership roles.
The company of my choice is The Home Depot, Inc. This is a home improvement supplies retailing company that sells tools, construction products, and services.
According to The Home Depot, Inc. page they operates many big-box format stores across the United States (including all 50 states, the District of Columbia, Puerto Rico, the Virgin Islands, and Guam), all 10 provinces of Canada, and the country of Mexico. Segmentation variables such as demographics and geographic play an important factor with foreign markets. The Home Depot have already expanded in Mexico and Canada, but is currently planning on Europe and Asia for future international opportunities, according to the Atlanta Journal-Constitution. Expansion into Europe and Asia isn't imminent, but America's largest home improvement retailer could be forced to consider opportunities there as its growth potential in the U.S. shrinks. In addition to offering another avenue for growth, successful international expansion would set Home Depot.
Chairman and Chief Executive Bob Nardelli apart from his competitors. Nardelli said he has no plans to make international expansion his legacy at Home Depot, but it would accomplish the third part of his stated strategy of "enhancing the core, extending the business and expanding the market." As I was analyzing this case, I don’t believe that is a positive statement coming from the founder.
International expansion is a strong strength to have according to Porters Forces and especially when it comes to competitors.
Great blog but it's crazy how the CEO said he doesn't want to expand to international markets.
ReplyDeleteVery well written blog. I think it's interesting that that the growth potential domestically is shrinking especially with the popularity of people investing in home improvement projects and taking on the challenges of flipping houses. I thought the growing popularity of that would have helped The Home Depot. I'm not sure what Nardelli meant in his statement because maybe he has a different strategy but I do agree, it might not have been the most positive way to state that.
ReplyDelete-Taylor Farmon
Great read, and a great analysis. I agree with the comments above, its truly strange that the CEO is limiting the markets!
ReplyDelete-Astiee Carver
Moving forward I'll be very interested to see how they'll conduct international business operations when the times come for mandatory expansion.
ReplyDeleteI agree with the first comment. It is odd to me for a company not wanting to expand internationally. I feel expanding will open a lot of opportunities for other countries to have certain resources that we have.
ReplyDeleteYes that is very odd that they don't want to expand internationally especially being that they are already a franchise, it would be good for the company.
DeleteThis blog post is well written and interesting. It is a major stepping stones for companies to expand business internationally. This blog post shed light on why it's important to grow business in international markets.
ReplyDeleteThis was a very interesting topic. I had no clue that Home Depot was not international. It seems like there afraid to grow or stuck in the past.
ReplyDeleteGreat blog and well written. I appreciate the break down of international business and it has peaked my curiosity to understand the reasoning behind the company choosing not to expand.
ReplyDeleteI'm impressed with this blog because it creates what seems to be a positive challenge for Home Depot. Ultimately they need to innovate and go abroad. Their Chief Executive seems to not be too concerned with having international expansion in his legacy. However, expanding there company internationally can only help the brand. So I agree with Halle even though they are now America's largest home improvement retailer, their growth in the U.S continues to shrink. With that being said, if they do not innovate and go abroad another company may come and take that top spot.
ReplyDeleteGreat topic and blog, I find it strange that the company doesn't want to expand because it could potentially expand the market. I believe everyone needs things for their homes so if they do decide to go international it should be successful.
ReplyDeleteThis blog was a very interesting read. I'm used to hearing about most companies wanting to expand overseas, however Home Depot seems to be comfortable right where they are at. I strongly believe that they should highly reconsider expansion abroad because they are overlooking potential profitable markets.
ReplyDeleteHey, I just read out your blog, it's quite interesting and informative thank you for sharing it..personally, i like Catalyst for international business expansion strategy. They provide coaching and consultancy at affordable rates.
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