Learning from Failure_ How to从失败中如何.pdfVIP

3rd International Conference on Management Science and Management Innovation (MSMI 2016) Learning from Failure: How to Succeed in the Chinese Retailing Market You-ai Xie, Zhen Chen, Xue-Bin Huang, Shu-Ying Qiao Hainan Tropical Ocean University, Sanya, China E-mail: xieyouai163@163.com, chenresearch@163.com, pku.huang@, 398762858@ Abstract—This essay aims to analyze drivers for divestment However, there are barriers for foreign retail companies for multinational retailing companies in China: Best Buy and to enter China such as different social and cultural context Home Depot and advise the American retailer, Lowe’s, on how [1]. In this regard, it is essential to understand a firm and to enter the Chinese market. On the whole, Best Buy and Chinese market characteristics and implement proper Home Depot failed in China market mainly because of their strategies for a multinational firm. inappropriate and unadjusted strategies. Moreover, they were unsuccessful owing to strong local and international The main purpose of this paper is to carry out an competitors. Besides, they exited from Chinese market due to environmental analysis to suggest the retail company misunderstanding institutions such as weak legal regulations, „Lowe‟s‟ on how to enter into the Chinese retailing market. business environment, and customers’ need. Therefore, the