Jiangsu Shuangliang Group's Diversification Strategy

Reform and Open Policy in China is performing in a high speed, and China government is implementing WTO terms step by step in current years. So more Multi-international companies are transferring to China, and China will further open its market to the world. Non-monopolization companies obtain more opportunities than prior years, but the opportunities are contributed to all companies, local companies and outside PRC companies will face drastic competence. If the companies want to survive from the competence, the most important thing is that they should select the correct strategy. The first chapter of the thesis focuses on the study of strategic management based on the strategic theory, and introduces the ingredients and levels of strategy. In the second chapter, the author takes Shuangliang Group (hereinafter as the "company") as a sample, and introduces the background information and strategy management of the company. In the third chapter, a theoretical analysis of the company of the advantages and disadvantage for the performance of non-related diversification strategy, which based on the G-PEST Model, Porter five-forces Model, Porter value-chain theory and Finance analysis, etc. The author's opinion is that the gross margin is in decline trend since the external environment changed quickly, and the company ignores the advantage on the original industry field. In the forth chapter, the author uses the Life-circle-method to assess the strategy physically, and provide two selections for the further development for the company. The author also hopes that this thesis may be a helpful reference sources for the management of the company.