Evolution Of The Diversification Strategy

During the past 50 years the evolution of the diversification strategy has experienced the phases of divergence, combination and the refocusing.Market changes of the final products are the expression of the evolution mentioned above. This thesis discusses the evolution of the diversification strategy in use of the complex systems theory based on the Evolutionary Economics.To maintain the integrality of the evolution process of diversification strategy the thesis uses the dynamic models to simulate the process, and discusses the trend of the process.First, this thesis analyses the attribute of the diversification strategy as a complex system, finding that it is a partial-control led self-organization system and has the features of Evolutive Properties NonI inear Inter-reaction and Emergence. The evolution process of diversification strategy has the features of integrality. Through the nonlinear inter-reaction of the system, random fluctuations of the elements internal or external cause the evolution of the diversification strategy.Furthermore, the thesis puts the correlated Gaussian white noises into the evolution model to explain the inevitability of the stage of the evolution process and the reasons why the appearance of each phase has a large territorial scope in the same time period.Finally, the thes i s uses Iogistic growth mode I to simu I ate the products combination and its structure changes of the company operating the diversification strategy. From the discussion of the evolution process trend of thediversification strategy, the thesis draws a conclusion that the next phase of the process wiI I be mainly on the expansion of the territorial diversification which is assisted by the adjustment of the products combination and its structure.