Take The Way Of Related Diversification Based On Core Competence

The development strategy of Chinese enterprises is always the concern of theorists and practicers since the reform & opening. Diversification is the opposite of Refocusing; diversification means the re-arrange & re-locate of resource in enterprises. Diversification strategy has a lot to do with the other strategies and it is the strategy which can bring great change to the enterprises. The paper, in light of existed research results of the academia, explores the scale economy and range economy of enterprises; through demonstration research and criterion research, it explains the relation of Chinese enterprises diversification, economic performance & risk and problems and disadvantages lying in diversification of Chinese enterprises. Finally, it proposes strategies & polices choices of Chinese enterprises diversification.