Research Of Diversification Strategy Of R Tobacco Companies Based On Core Competence

In recent years, tobacco industry has achieved great success by adhering to DengXiaoping Theory and the important thought of "Three Represents", thoroughlyimplementing the scientific concept of development. All the efforts have been basedon the development of reliable market, which is considered as the solid foundation.These work also greatly promoted the sustainable and healthy development of thetobacco industry. However, tobacco industry has also met a lot of challenges andproblems at present, Cigarette consumers account for less proportion in the totalpopulation and the market is gradually saturated; Anti-Smoke tide is rising around theworld and Chinese tobacco control is gradually enhanced; along the improving systemof market economy, monopoly franchise system is facing a severe test. The mosteffective and realistic measure respond to these pressures and challenges is tocomprehensively improve the quality of cigarette, to enhance the core competenceand to promote the diversification strategy so as to decentralize the business risk.The research is based on the R Tobacco Companies as the object of study.Adopting the research method of literature and investigation, combining qualitativeanalysis and quantitative analysis, combining normative research and empiricalresearch, the research adopts of the domestic and foreign strategic management, corecompetitiveness, and diversification theory, proposed to implement diversifieddevelopment strategy based on core competencies and expand areas of diversification.Firstly, the study introduces the theory of strategic management, corecompetence and diversity combination and provides a theoretical basis for the relatedresearch in R tobacco companies’ diversification strategy.Secondly, on the basis of the current situation and developing tendency oftobacco industry home and abroad, the paper states the elements of R TobaccoCompany’s core competence. Thirdly, the paper gives an analysis and summary of thestatus as well as problems of the diversification strategy.Finally, specific suggestions about diversification strategy are given to RTobacco Company based on core competitiveness. The suggestions are come up withafter a comprehensive analysis and from two aspects: strategic planning and guaranteemeasures.The general pattern of the development for enterprise is from a single to the multiple. The research of diversification strategy of R tobacco companies based oncore competence will solve the following problems: the fuzzy strategic positioningand unclear development target. The main achievements and innovation points are asfollows: Firstly, diversification strategy is based on the core competence of theenterprise; the successful development path is to expand the core competence fromthe core business to related business. Secondly, the key factors for the successful ofdiversification strategy is to find the businesses field that the core competence playthe important roles and to specify the marketing object of diversification strategy.Thirdly, the core competence of R Tobacco Company is the combination of5abilities.and to find the development plans and guarantee measures of diversification strategyin R Tobacco Company according to the above five abilities.Diversification is an important growth strategy for enterprises. With theinnovation of diversified management theory and the development of diversificationstrategy, it will be developed well in all aspects.