Diversification Strategy Analysis Of Chinese Household Electric Appliance Manufacturing Enterprises

Look at the growth and development of large international household electric appliance enterprises, diversification strategy as a strategy for development, is an effective way to expand, develop and achieve sustainable growth. Chinese household electric appliances manufacturing industry has been recognized as the earliest industries in the market-oriented process. Because of the degree of market competition have become more intense, industry profits tend to average, a lot of household electric appliance enterprises began to implement diversification strategy, such as Haier, TCL, KELON, Changhong, Konka, etc. When these enterprises have grown more and more strength through diversification,we can see that not all of their business are successful, some enterprises in the process of diversification has also paid a heavy price.This thesis from the perspective of core competence, through analyzing the relationship between the core competence and the diversification, emphasize the importance of core competence when implement diversification strategy, point out the reason why Chinese household electric appliance manufacturing enterprises had a setback is that their implementing diversification strategy is not based on core competence. After analyzing the problems exist in diversification of Chinese household electric appliance enterprises, the thesis proposes corresponding countermeasures.The first part is preface,introduce the purpose and content of thesis, briefly introduce the development of Chinese household electric appliance enterprises, and analyze the problems exist in the diversification of Chinese household electric appliance enterprises.The second part is mainly elaborates two theory foundation relate to thesis, that is core competence and diversification strategy.The third part is a focus of the article, analyses the relationship between the core competence and the diversification strategy in-depth, find out the relationship between the two is mutually supportive: diversification can promote the core competence to consolidate and update, and operating diversification is based on core competence. This relationship will become the strong theory basic of the forth part which propose the countermeasures.The last part use the inspiration of Haier's successful diversification strategy, aim at the problems exist in the diversification of Chinese household electric appliance enterprises, around the two keywords: "core competence" and "related diversification", propose corresponding countermeasures. The countermeasures hope to give some revelations to the enterprises which are operating or begin to operate the diversification strategy.