Research Problems And Solutions On The Diversified Development Strategy Of PS Company

Diversification is an overall, long-term strategy for the enterprises. Diversification would make conditions for the enterprises to win to compete under the conditions of market economy. It would make enterprises to gain higher profits and provide opportunities for the managers (CEO) to coordinated or manage different business fields.But the biggest shortcoming of diversification strategy is that it would cause the company's resources scattered, increase the operation span and cost, make more mistakes on industry choice. So the company unable to attend to everything at one time, the core competitiveness of the brand would be greatly dampened. Consequently, most brands which have competitive advantage in a professional field survived after the diversification developments in many large enterprises.Based on the background of the auto parts industry development, this paper discussed the theory of related diversification strategy, analyzed the auto parts industry's competitive environment, in order to formulate enterprise's diversification strategy effectively. The paper set PS company as a typical study object of a auto parts company, combing with PS company's development at present, using development strategy, the Boston Matrix, the value chain management theory and so on, to analyze PS company's competitive power, and provide a theoretical basis for its diversification strategy. The paper mainly discussed the typical problems on implementation process by research and analysis the status of PS company's diversification strategy, and proposed some countermeasures to this problem.The research would help PS company products to achieve large-scale development and the absolute market advantages by formulating and implementing diversification strategy effectively, also provide reference for other auto parts companies.