| The debate of the strategic choices of specialization or diversification is a very important and hot issue in the field of strategic management for the Chinese companies. How to choose an appropriate strategy for Chinese companies will decide the way that our companies are going to compete with foreign companies in the global competition. Vanke was regarded as a successful example that employed the diversification strategy. However, this company changed its strategy from diversification to specialization in the 1990's, and sold a lot of its businesses which are not in the real estate industry. After that, Vanke became the biggest company in the real estate industry of China very soon at the beginning of twenty-first century. The strategic development of Vanke is very representative and instructive.This article studied the Vanke' s process of choosing and implementing its strategy according to the theories of strategic management, diversification strategy, and core competence by using the methods of case study, systematic analysis, and dynamic analysis. The aim of this article is to reveal the relevant elements about how to choose and implement a strategy under the consideration of the specific changing business environment of China.The major results of this article are: Diversification strategy is better for growing market, while specialization strategy better for grown market; Specialization strategy is a general choice, while diversification strategy is a special choice; There is some misunderstanding about the diversification strategy, which means that diversification and specialization can be combined; Strategy should be chosen on the basis of the core competence of an enterprise; Excellent professional managers and the team are vital to implement a strategy; A perfect culture of a company will support the success of implementing a strategy; Dropping the businesses that are non-relevant to core business initiatively is a better choice than dropping the businesses passively. |
PDF Full Text Request