Home Depots Nightmarish EXIT from China Assignment

Home Depots Nightmarish EXIT from China - Assignment Example Thirdly, Home Depot wanted to get rid of the distribution network by eliminating middlemen and leverage worldwide supplier network which was hard. Lastly, Home Depot had been suffering from declining profits and only the change of the business model for example e-commerce (Saporta). The Chinese consumers haggle too much when doing their shopping which is unfavorable to the retailer. Furthermore, they do not buy some of the products for instance garage tools because they hire someone to do it for them (Saporta). In addition, Chinese do not shop alone without assistance which required Home Depot to hire and train tradesmen to meet their desired standards. A safe exit strategy from a foreign market would be liquidation because there is no worry about change of control and no negotiations are involved (Cross). From the article, I derived that closing some of the retail slowly is a safe exit strategy. Selling the retail stores to a friendly buyer would also serve as a safe exit strategy because the buyer is known. Lastly, offering an Initial Public Offer (IPO) for it would increase the worth of the company