Enterprise Integration Strategy Appropriate Diversification

With the percussion and interaction of global agglomerate enterprises, Chinese are also probing the ways of diversifications and integrations. During the progression, improving industry structures, optimizing strategic resources to form corporate core competitiveness are crucial objectives of corporate institutional reforms. They are focusing on core businesses, reducing waste and enhance efficiency along with emphasis strategically structuring and restructuring of their businesses. Under circumstance of limited resources, strategy selection greatly impacts on corporate life and death as well as fate. Hence, it is of important significance of making accurate and reasonable strategies. As one of Chinese leaders of steel industry, Baosteel takes sequential "one core business is extremely strong with feasible diversification" after making series of development strategies. It precisely and effectively develops and expands business ranges so as to creat China leading steel enterprises.The paper commences with Baosteel case and collects last chronological industry data and related business data to analyze. It also states how Baosteel constructs its strategic supply chain and realizes one core business strong with reasonable diversification targets. It mainly focuses on how to better and refine the mutual combinations and promotions of diversifications and integrations to solve the problem of blindly chasing the trend. With the attempt of illustrating how strategy selection impacts enterprise development paths, the paper gives good example to other enterprises which are pursuing diversification and integrations. The author also gives some insight view of how enterprises will make strategic reforms and guidelines.The paper begins with the development momentum of global diversifications and integrations, analyzing Baosteel's competitive environment and position, taking advantages of SWOT analysis method to get insight of its strengths and weaknesses. The paper proposes the strategic significance and background of one core business extremely strong with reasonable diversification as well as how strategy selection constructs Baosteel's core competitiveness. Core competitiveness is crucial part of business operations and headstone of business development. The strategy guidelines selected by Baosteel forms its none-substitutable core competitiveness in terms of technology innovations, strategic cooperation as well as marketing channel constructions with mutual enhancements, therefore laying solid foundation of long term strategy planning. The paper analyzes Baosteel real case and strategies under circumstance of fiercely competitive and global business trend, it also illustrates reasonable diversification and integration problem can influences not only Baosteel, but also will gives some strategic guideline to other Chinese enterprises...