Study On The Multiplication Strategy Of Linuo Group

Diversification Strategy is one of the key ways to develop a business growth in the increasingly competitive market conditions. Many companies are eager to choose diversification as a strategy, from which they, especially those corporate groups, have gain a lot than that of professionalization. However not all the companies can pursue diversification. The foremost problem facing now is how to scientifically manage multibusiness. Through more than ten years development, Linuo Group started its business in 1994 from a small-scaled factory to now a leader enterprise in solar energy. It has been honored as National High-tech Enterprise, National High-tech Center of Private Enterprise, National Housing Industry Base and Jinan Solar-related Industrial Base of National Torch Plan. Linuo Group has five members:Linuo Power Group, Linuo Solar Thermal Group, Wuhan Xinkang Chemistry Group, Linuo Glass Group and Linuo Pharmaceutical Group. Diversification Strategy is its important development of Linuo Group. Linuo Group made a successful change from diversification to professional, but it also showed the problems of talent shortage, no prominent main business, no shared resources, ect.This essay is guided by diversification strategy theory; investigated and analyzed the internal and external environment of Linuo Group, combined with the current development status, put forwards some ideas on the future development through the analysis of industrial competitiveness. Generally speaking, there're four tools have been used in this essay. SWOT analysis pattern is used to analyze Linuo group's strength, weakness, opportunities and threats. KFS theory helps to find out the key success factors of each industry. Value Chain Analysis points out the main sections need to be improved. The Boston Matrix values the strength in related fields, and provides some suggestions of Linuo group's diversified implementation in the near future. This essay combines theory with practice, and will make contributions to other companies.