Study On Product Diversification Strategy For Xiagong Group Co.,Ltd

Along with the rapid growth of Chinese economy since late years, the Chinese engineering machinery industry increase very fast, the market expands continuously, the market competition aggravates unceasingly also. On the other hand, the scale of Chinese engineering machinery enterprises is too small, the structure of products is too simple, the ability of design and manufacture is too limited. How to create the coordination effect on the basis of product diversification, increase the market share, lower the operation risk, which become a big problem that the Chinese main engineering machinery enterprises must face with.The paper analyzes the competition status of Chinese engineering machinery industry and the strengths, weaknesses, opportunities and threats of Xiagong Group. At the same time, the author proposes the product diversification strategy for Xiagong Group, analyzes its implementation steps.The paper consists of six chapters.The first chapter is the preface, which provides the environment of subject selection, the purpose, methods and structure of the thesis.In the second chapter, the author mainly introduces the organization structure and products of Xiagong Group, the construction of Xiagong Industry Zone.The third chapter provides an analysis of China engineering machinery industry. We analyzes the outside environment of Xiagong with PEST method, and the competition condition of wheel loader industry with the model of Potor Five Competitive Factors, so that we can know the development direction of engineering machinery industry.In the fourth chapter, we can get a judgement on the competition ability of Xiagong Group by analyzing the strengths, weaknesses, opportunities and threats of this company with SWOT method.In the fifth chapter, the author presents product diversification strategy for Xiagong Group with the development target of Xiagong. Then this article describes the history of Xiagong Group's product diversification process and the main problems. Finally the author analyzes the causes and conditions of Xiagong enhance product diversification.In Chapter six, we analyze the product structure with BCG Matrix. Then we present the implementation steps for product diversification strategy. Finally the author bring forward some suggestions when Xiagong implementing its product diversification strategy.