On The Choosing Of The Operating Strategy Of China Household Appliances Enterprises

As viewed from the history of development of big international household appliances enterprises, diversification is a fast and effective way to enlarge scale, enhance competition, and realize persistent growth. However, some China household appliances enterprises failed in this process, and the rest also have to face two difficult problems: one is price war that is endless then serious affects long-term development of corporations; the other is on the condition of overcapacity, which way is better for these corporations to go out and make themselves become giants? Comparing with some international enterprises, Chinese corporations are still smaller, short for core competence, hi- tech and the power of innovation. Take a worldwide angle of view: we haven't our own big corporations or corporation groups who can be competitive forcefully with the big international giants. From this point, the study of multi-industry theory and lessons of practices has important strategic meaning.Chapter 1 is the summary of theories. We talk about core competence theory of the firms of C. K. Prahalad and Gary Hamel, think only when corporations have their own core competence, they should have persistent competitive advantage; And it emphasizes on the analysis about emerging market did by Tarun Khanna and Krishna Palepu, they consider that it is smart in N.Y. or London to play focused operation, but since it would lose some important factors when used in emerging market, so it isn't right for these films to totally follow the theory and experience of developed countries; Chapter 2 takes some cases to expatiate the reason and advantage of household appliances enterprises's diversification; Chapter 3 analyses some problemsin current diversified management, especially price war and puzzledom in transnational management, after comparing with specialization, draw a conclusion that diversified management is necessary, but it still needs breakthrough; On this basis, Chapter 4 states strategies used by enterprises when they grow, develop and strengthen, designs the route of diversification strategy.At the end of this thesis, some viewpoints were summarized. Firstly, it's wrong for China household appliances enterprises to totally follow the growing mode of western enterprises, and becoming a diversified corporation is a practical choice; secondly, diversification must be in time, once a company has a right opportunity and relevant competence, it's time for him to do something; thirdly, this thesis bring forward a opinion about how to make a household appliance enterprise stronger, which is the main viewpoint of this thesis, that is it's a good choice for household appliances enterprises to start by specialization, grow and become strong by diversification, and go back to core competence in the end.