Home Depot and its South American Branches

Paper Summary:

Realizing that its growth was limited domestically, Home Depot began considering foreign penetration to energize consistent but not accelerating balance sheets. The writer studies the economic strategies employed by the company to increase revenue by branching into the largely untested countries of South America. The paper outlines the risks involved as well as the potential benefits.

From the Paper:

"The Home Depot business model relies on either a strong home-owner market segment or an economy where there is much construction going on. Like most developing nations, Brazil's population is young; the percentage of people under 20, however, declined to less than half of the total population between the 1970s and the 1980s, while older age groups increased. There are few homeowners in Brazil, so the assumption can be made that Home Depot was relying on the construction industry to support future growth."

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