Research On Diversification Strategy Of Qingdao AUCMA Group

Qingdao AUCMA company limited is a set of freezers, refrigerators, electric bicycle, small household appliances, washing machines, solar water heaters and other diversified business enterprise. All of the industries above are different and AUCMA Ltd has different advantages. Especially facing re-pioneering, and in the situation of financial crisis, to study its diversification strategy, to design its product mix tactic and to conduct the ensuring measure are the critical tasks of ACUMA Group.In order to design ACUMA Group's diversification strategy, we must analysis the ex-situation and its capacity firstly. Through the theory of PEST to analysis the ex-situation combining its inter-resource and capacity, we know that AUCMA has advantage in scale, technology and strong brand familiarity in the field of freezers, has no technology and scale advantage but a growing market in the field of washing machine, and these two can share marketing channel. In the business of electric bicycle and automat, it has technology advantage and the growing market. In lithium battery manufacture it has technology advantage but the capacity of market is too small. In these fields ACUMA Group has market opportunity and inter-advantage. AUCMA uses OEM to operate Household Appliances. However its quality and service can't meet the standards and damage its brand. In the business of Solar water heater and e-water heater, it has no technology advantage and confront cut-throat competition. In these businesses, AUCMA Group has obviously disadvantage and the market has many threats.The key to diversification strategy is designing product-mix. Through the analysis of Boston matrix, the business of refrigerator has high relative market share and grows fast, so it is AUCMA Group's bright star. The business of lithium battery has low rate of growing market and low rate of market, so it is AUCMA Group's dogs. Washing machine, automat, Solar water heater, small household appliance, cookers and e-water heater have high growing rate but low relative share rate, so these are ACUMA Group's problem business.To design diversification strategy must set foot on choosing key developing business and manners. ACUMA Group should vigorously develop refrigerator business, focus on e-motor, washing machine, automat, redesign the business model of lithium battery,and abandon Solar water heater, household appliance, water heater and cookers etc gradually.To design diversification strategy must conduct the ensuring measure. ACUMA Group should position obviously the Ltd's strategy decision, coordinated control and service guidance, optimize organizational structure, and create a open-culture, as well as design platform-sharing for human resource management, finance management, information management and logistics management.