Company A Concentric Diversification Strategy Research

Under the background of economic globalization, enterprises are facing increasingly fierce competition across industries from home and abroad. How the small and medium business enterprises use their own advantages, in the face of various crises and challenges to survive, while allowing enterprises to develop healthily and continuously, make the issue of enterprise development strategies to become priority among priorities.From the point of view of sustainable development of company A, this article raises concentric diversification of necessity, points out the direction of development. Through the application of scientific theory and method, this article makes efforts on researching into the strategic problem of concentric diversification used by company A. Based on the theory of modern enterprise management, this article analyzes large amount of information and data on the industry, assesses the external and internal environment the enterprises are faced with, and forecasts the future of the industry in order to find suitable corporate strategies for healthy and sustainable development-concentric diversification strategy. Finally and accordingly, this thesis proposes assurance measures for the implementation of this strategy.The structure of this thesis is divided into six chapters. The first chapter is an introduction part of the research paper. It describes the background, the paper structure, the research methods, and innovation. ChapterⅡTheoretical overview, It introduces the theory of concentric diversification strategy and diversification strategy implementation steps. ChapterⅢCurrent business status analysis, it introduces the three sorts of company A's existing business, the internal resources and capabilities of the company, and the problems to its strategy development. ChapterⅣdesigns the concentric diversification strategy for company A. Through the application of resource metastasis-availability matrix and the general matrix, it makes the selection and positioning of the company's business. ChapterⅤproposes the guiding ideology and major initiatives for company A to implement the concentric diversification strategy. ChapterⅥconstructs supporting system for the concentric diversification strategy to adapt to and facilitate its implementation.Through the research into company A's concentric diversification strategy, this article provides not only the theoretical basis for enterprise survival and sustainable development, but also the foundation for the research of same kind of enterprises. Besides it makes up for the lack of relevant research on concentric diversification strategy for the same kind of small and medium business enterprises.