Research On Diversification Strategy For CX Mechanical Bearing Enterprise

With development of global economic, traditional enterprises are encountering with more complex market environment and competitive situations. Additionally China’s industry economy has experienced late development comparing with other western countries and Chinese manufacturing enterprises are still lying on the low position of value chain among global manufacturing enterprises. Therefore, how to solve the problems of low added value of products and low economic efficiency for Chinese traditional manufacturing enterprises in order to better show competitive advantages and achieve industrial upgrading. Enterprises, especially the small and medium manufacturing enterprises in labor intensive industry are often chartered with weak technology, limited production capacity, and single product, and could achieve great benefits through implementation of diversification development strategy. Besides, they could dramatically improve operations efficiency; bring new profit growth point along with satisfaction of diverse needs in the market.This dissertation sets example of CX mechanical bearing enterprise to explore diversification strategy of CX, and tries to develop corresponding strategy management planning and discuss how to achieve success of diversification strategy practices and avoid risks. Case study and literature review methods are taken advantages in order to identify diversification trends from emerging situation in management reality. PEST and SWOT analysis are also considered to make sure the diversification development planning is feasible.Finally, this dissertation obtains objective of diversification development as ’transforming and upgrading’,identifies guidance of diversification development including’improve product added value, enforce competitiveness and achieve industrial upgrading based on diverse market demands’.Among them, YL mechanical bearing limited enterprise is selected as major objective and related topics are discussed based on risk management, benefits and costs analysis. Moreover, it also tries to provide recommendations and suggestions for diversification development strategy especially for traditional manufacturing enterprises and makes efforts to earn positive influences for diversification strategy theoretical research.