The Analysis Of Diversification Motives And Behavior Of China's Large Electric House-appliances Manufacturers

As a strategy for corporate extension, diversification has been paid great attention both by researchers and entrepreneurs and has aroused heated controversy. In recent years, however, it appeared that more and more Chinese large manufacturers of electric household appliances have adopted this strategy. Then what characteristics has the diversification behavior in theses companies shown What motives are behind these behaviors Are there any problems concerning the companiesdiversification, and if any, what are they Why do these problems occur Is there any feasible solution at present Aiming at the above- mentioned question, this article tries to analyze the diversification behavior in large Chinese companies making electric house appliances from different angles. The article consists of seven chapters: Chapter 1 is the prefaces, introducing questions to be solved, define diversification concept, its type and the main objectives of the research. Chapter 2 outlines the development of Chinese electric house-appliances industry, including a look back at the history and an introduction of the current situation. Chapter 3 summarizes the characteristics of the diversification type, time and methods of these companies. Chapter 4 mainly deals with motives behind these behaviors, analyzing from aspects such as development space in former industry, mission of the enterprises, economic benefits of diversification, effects of the new industries on diversification etc. Chapter 5 uses strategic theories and analysis tools to illustrate problems existing in the diversification behavior of these companies. Chapter 6 explores the possible reasons for problems concerning the companies diversification behavior and attempts to offer relevant solutions. Chapter 7 is the summary for the whole article, making a review of the article's content and author's opinion.