Abstract-This essay aims to analyze drivers for divestment for multinational retailing companies in China: Best Buy and Home Depot and advise the American retailer, Lowe's, on how to enter the Chinese market. On the whole, Best Buy and Home Depot failed in China market mainly because of their inappropriate and unadjusted strategies. Moreover, they were unsuccessful owing to strong local and international competitors. Besides, they exited from Chinese market due to misunderstanding institutions such as weak legal regulations, business environment, and customers' need. Therefore, the recommendations are as follow. Firstly, it is wise for Lowe's to set adjustable and appropriate strategies to China. In addition, it is essential to understand Chinese business environment and customers.
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