Research On The Diversified Development Strategy Of KG Group

With rapid economic development, the enterprise needs to want to in the fierce competition of survival and development opportunity and cling to an industry, specializing in a field, the operation mode of a kind of products has become increasingly unable to adapt to the situation of the development. The purpose of the implementation of diversification is the pursuit of economies of scale, profit maximization, more rational allocation of resources, play a synergistic advantage, enhance the comprehensive strength, reduce the investment and operational risks of a single business. In the development of modern enterprises, diversification has become a common way of rapid growth of enterprises, and occupies an important position in the growth of large enterprises. On the whole, diversification strategy is an important way for enterprises to seek the future development. However, not all companies are able to implement effective diversification. Many enterprises because of the neglect of the diversification strategy of the premise, blind diversification, leading to the enterprise into a lot of mistakes.Diversification strategy is refers to the enterprise and business strategy for the development of a more than two kinds of basic economic uses the same product or service. Diversification strategy is the relative enterprise professional operation, which includes market diversification, diversification of products, regional investment diversification and the diversification of capital. The so-called product diversification, refers to enterprises in the new production of products across the is not necessarily involved in a variety of industries, and produce a series of products; the diversification of the so-called market is refers to the enterprise products in a number of markets, including the domestic market and the regional market, and even the global market; so-called regional investment diversification is refers to the enterprise investment not only concentrated in a region, and dispersed in a plurality of regions even to all over the world, the diversification of the so-called capital is refers to the enterprise’s capital source and composition of a variety of forms, including physical capital and intangible capital the such securities, stocks, intellectual property rights, trademark and corporate reputation.The purpose of this paper is according to the situation of our country enterprise diversification development of analysis and research, on diversified development strategy factors of success or failure, mistakes and the advantages and disadvantages were discussed, analysis of kg Group diversified background, development status and existing problems, clarify diversified theory development trend, and puts forward the pest, Porter’s five forces model, SWOT analysis countermeasures based on and in iron and steel enterprise diversification strategy and sustained, healthy and stable development to provide reference.The field survey method, case analysis method, questionnaire survey method, data acquisition method, using the pest, Porter’s five forces model and SWOT tools for comprehensive system analysis kg group diversification development advantages and disadvantages.Through the research, finally obtains: the diversification pattern as the management strategy and the way, its itself does not have the good and bad points, is in the specific market environment to seek the maximum capital value and the enterprise development and growth of the way. Enterprise application of this model, the key to success lies in the external environment of the enterprise and the internal conditions are in compliance with the requirements of a diversified. Both match, the match will be successful, otherwise it will inevitably fail.