Implementation Of The Diversification Strategy Of The Enterprise Groups In China Diversification, Strategic Research And Theory Shipping Group

Playing a vital role in national economy, Chinese enterprise groups are the leading powers which compete with international companies in both domestic and oversea markets. It is of great importance for national groups to strengthen their study of operation strategies especially after China's entry into WTO and against the speedy development of economic globalization.With a long history in the operation practice of international enterprises, Diversification strategy is importantly accepted, and thus a key choice made by enterprise groups. Although influenced deeply by natural economy, Chinese enterprises also began to diversify in the 1950s. During the process of the set-up and development of Chinese enterprise groups, diversification strategy has been adopted by these groups.Diversification has made great contributions to the development of enterprise groups. However, there are some problems in the diversified practice of some groups due to the misunderstanding about diversification. For example, blind diversification is carried out before scale economy achieved in main industry; too many industries are engaged in owing to overemphasis on diversification, etc. As the result, groups met with difficulties, even went bankruptcy because they diversify improperly. Fail examples are never rare. Besides, there are some arguments on diversification among specialists and scholars. Through study on diversification strategy and acquisition of correct understanding of it, we can correct deviations in diversification practice and promote healthy development of enterprise groups, so the study is worthwhile.Firstly, the thesis clarifies the definition of diversification and recalls the history of diversification of Chinese enterprises, then applies economic theory to analyzing the market mechanism of diversification in detail and investigates someproblems existing in diversification practice deeply.Secondly, the thesis points out the principal problems appearing when enterprise groups exercise diversification and anatomize them. On the basis of this, the thesis draws the conclusion that enterprise groups should work hard to develop scale economy and put the main industry first. On this premise, groups should give priority to the development of related industries. The thesis investigates scale economy in particular and tells readers how to operate beyond the nation to achieve scale economy.Finally, the thesis analyses the external environment of Chinese shipping groups in both policy and market angles and gives these groups some advice about how to consolidate main industry-international shipping, how to offer comprehensive logistics services and deal with related industries.The thesis applies some theories about scale economy, market structure, dealing cost, etc. to the research and analysis. In addition, the thesis cites plenty of scientific data and living examples as proof.The thesis puts forward a new viewpoint about diversification of Chinese enterprise groups on the basis of research and analysis and acquires the diversification strategy of shipping groups through study. The author wishes that this thesis, like a brick to attract a jade, would lead professionals to probe further into the diversification strategy.