Research On Diversification Strategy's Performance Of Textile Listed Companies In China

Now ,diversification strategy is one of the most important business mode to the morden enterprises. Under the pressure of today's drastic competition, Many morden enterprises expect to advance their competitive capability by taking Diversification strategy and it has been a common phenomenon nowadays. Meanwhile ,in china more and more listed firms come to this queue to orgnize their business. But ,many of them are failed in doing Diversification strategy although some of them are tasting the benefits of Diversification strategy. Both the managers and the experts are all expecting to know exactly that whether the Diversification strategy can give us more benefits than loss or not.Textiles and apparel industries are the backbone of the national economy and the people's livelihood.In this article ,author seriously analyzed the theories related to Diversification strategy and performance, then analyzed and described the actuality of both industry and diversification strategy. Secondly ,selected the Textiles and apparel industries as the object of study, did the demonstration research in the performance of the listed firms belonged to textiles and apparel industries base on aggregate extent of diversification strategy, the extent of diversification strategy relativity and types of diversification strategy during 2004 to 2006 by using linearity regress analyse and single factor variance analyse. The result proved that diversification strategy improve the performance and the correlativity between diversification strategy and the performance existd. In the end ,the countermeasures for diversification strategy and the conclusion were given out.