The Yellow Pearl Group, The Diversified Development Strategy

The Strategy is an overall and long-term decision. The marketing strategy of an enterprise is an important decision that would directly affect the development and future prospect of an enterprise. The enterprise shall not only make its marketing strategy, but also be aware that the marketing strategy making shall be closely bound up to the future of its diversification is an idea and model of corporation development. the adoption of the diversification strategy is invariably the result of the strategic transformation on the part of the corporation at a certain stage of development.In this paper, the author first introduces Sanmenxia Yellow River Mingzhu Group (YRCC) and its industry status. After summarizing correlative theories of growth strategy, internal audit and external audit are performed.the major commonly-operating businesses and the industry chains of YRCC, The perform analysis on the several fields where YRCC should actively pursue or retreat. Such choice has been well thought out and analyzed beforehand. This paper provides a new idea and a new methodology to make choice of diversification strategy based on the core competence through above theory and methodology.In the first chapter, the author introduced the information of YRCC.In the secend chapter, the author introduced the hydraulic power and the diversification theory.In the third chapter, the general situation and historic stages of YRCC .the author makes clear the external assessment of strategic environment. In the analysis of the general strategic environment, mainly investigates the macro-economy, the national macro-regulation. ln the analysis of the industry strategic environment, the author studies the electric power industry, aluminum industry respectively. Then the analysis of the business enterprise strategic environment, evaluates the opportunities and threats faced by YRCC. Through examining the key internal resources, the advantages and the disadvantages faced by YRCC. the writer has expounded what kind of strengths and weaknesses. Finally, the opportunities and the challenges faced by YRCC are made clear.In the fourth chapter, The author firstly analyzes the major commonly-operating businesses and the industry chain of YRCC. then the increase motive power, the writer has found out the growth ways and methods adopted by YRCC in the past. Then educes the strategy choice for YRCC to realize its reincrease, viz. YRCC must change its growth ways, adjust it structures. Finally, the new growth strategies of YRCC are confirmed and implemented: the aluminum industry implements vertical integration strategy, viz. to develop hydroelectric power industry, reorganize the high energy consuming industries, develop tourism industry and make full use of the water of sanmenxia reservoir.Aim at the fact that the absence of the internal resource, the author thought the enterprise should rebuilt the organization, improve the flow and enhance the human resource administration and the enterprise culture construction.At the last chapter, the author summarized the whole analysis process of this paper.