| The paper mainly explores the question of the diversification strategy in the industry of electrical appliances in china. From the angle of Industrial Economics, the paper examines the industry's market structure, the competition state and the resource condition and strategic ability, etc., points out that the inside and outside factors result in such strategy choice. Then ,the paper adopts empirical study on the relationship between the diversification strategy and its economic performance, The result shows that, The coefficient between the overall diversified degree and ROA, ROS, ROE is negative, and there is no relation between the overall diversified degree and the rate of asset-liability ,It means that ,the higher the overall diversified degree is ,the worse the economic performance is. Summarized the reason we could find, first as without the key ability, the diversified behavior of enterprises just stay on the introduction of the final products, which makes there is no different among those products, so the company's earning capacity is low. Second the enterprise often ignore themselves' profit ability analysis while enter in a new industry, which results in bad investment outcome. At last, this paper proposed the developing ways for the electrical appliances industry; it is that relying mainly on strengthening staples, improving the key competitiveness, developing the low-degreed diversification. |
