Hunan Long Xiang Group Three Industrial Development And Diversification Strategy

Diversification strategy means that companies in a number of related or unrelated industries operate a number of different businesses. Since 20th century 60s,corporate diversification is considered the most competitive business strategy,which has swept the world and led most large companies embarked on the journey of diversification.In recent years,diversification is still one of the most interesting topics to most Chinese enterprises and also a highly contentious issue in enterprise restructuring and development.Hunan Longxiang Transportation Development Group Co.,Ltd. (hereinafter referred as Longxiang Group),restructured from Changsha Auto Transport Development(Group)Company,is a large enterprise group in transportation Industry of Hunan province and has an operating history of 88 years.After years of development,its business covering road passenger transport,passenger and freight station,public passenger transport of the city,taxi services and tourism passenger transport. Concurrently,it also operates auto repair,testing,product oil supply, parcels,cargo loading,driver training,travel services,real estate development and other business projects.In this paper,the study was started from the analyzing of the internal and external environment of Longxiang group.We clarified the risks that the company faced,such as policy risks,operating risks and so on, pointed out the superiority that the company had in its business, financing,management and other areas.After that,by combining the theory and the status of its own development,we demonstrated the feasibility of the three-industrial diversification strategy from the implementation principles,implementation conditions and other aspects of pluralism. Based on the conclusion of implementing the three-industrial diversification strategy,we suggested the specific methods of diversification and the measures of security. Finally,we predicted the effect on the implementation of the strategy evaluation.This study combined the current situation and trends of China's road transport industry,generally analyzed the motivation,feasibility,industry direction,risk prevention and other aspects of Hunan Longxiang Group implementing the three-industrial diversification strategy. All these can provide references to the sustainable development of Longxiang Group and other road transport companies.