A Study Of Diversifying Strategy Of Nanjian Conglomerate

Diversifying development strategy is one kind of strategic thinking that enterprise develops. In general, diversification is a long-term management principle and thought that enterprises manage in much relevant or un-relevant fields to seek an expanding scale, win the - market and creat beneficial results. That is to say, deversification management is a chance that creates a bigger development space and gains more profits for enterprise. On diversification, scholars at home and abroad hold the common opinion that the degree of enterprise diversication is inverse proportion to the developed degree of the market economy. Enterprises are more suitable to develop in deversification in new and un-matured market economy environments. Un-matured markets imply more chances of great profits in many industries.Nanjian Conglomerate (hereinafter "NC") is a building construction enterprise in Nanning,Guangxi. To provide diversified development in relevant industries is NC's strategic goals for the future. This thesis first reviews and summarizes relevant theories on diversifying strategies which are then employed for a far-reaching analysis of NC, covering the external environment (macro environment, basic tendency of the industry development and industrial environment of competition) and internal environment (business resources, strategic competence and core competence). The construction market and the real estate market in Guangxi are expanding rapidly, but at the same time, industrial competition of building construction is fierce, industrial profits are decreasing progressively, and industry risk is increasing. In order to survive and develop sustainability, it's obvious that NC can not be confined to building construction only. On the contrary, NC should expand its' market and development in other relevant fields. For a comprehensive evaluation of the strategic environment, i.e., the external and internal environment, of NC, SWOT analysis techniques are employed, outlining the advantages and disadvantages of the internal environment of the enterprise and the opportunities and challenges it faces externally. Furthermore, the industry attractiveness and enterprise competition analysis techniques are employed for an analysis of all the existing operations of NC from the perspectives of strategies for expansion and constriction of the business scale. From all the research on the above, we obtain the diversification strategy for NC by taking real estate development and building construction as priority, driving development of real estate management, commerce and trade and movie and TV culture with real estate exploitation, spurring on building labour service and rents of building materials and detection of building construction. The way to realize fast growth for NC is to conduct a relevant diversifying strategy around the building construction, to consolidate and develop its core competence, and be strong and big enough to win the market competition.In order to develop diversification management, this thesis further suggests some concrete measures for NC to provide a big and powerful supportive role for its' diversification. The measures include improving the efficiency of capital operation, accelerating systematic creation and technological innovation, constructiong human resources, enterprise culture and information to set up core competence and form the core competitive advatages of NC.