Research On Diversification Development Strategy Of CDGM

CDGMis an internationally influential photoelectric materials researching and manufacturing corporation, which plays a leading role in China. During 60 years of production and sales of optical glass, its sales volume has ranked at the first place around the globe, accounting for 30 percent of the global market. At present,Optical glass is the only main business of CDGM. With the replacement of digital cameras by smart phones, the demand for optical glass has been on a dramatic decline. Meanwhile, since the 1980 s, accompanied by the growth of optical glass business, the precious metal products business of platinum processing and purification of CDGM has been gradually developing. For the moment, the capacity of CDGM in precious metal products has certain influence on domestic market. However, its scale is still not big enough.Initially, this essay analyzes the opportunities and challenges photoelectric industries are confronted with, by means of five analysis model, competition analysis model and value chain analysis model. Secondly, this essay conducts a profound analysis on the interior resources and exterior pros and cons of CDGM, and concludes the advantages as well as disadvantages of these two businesses through induction. Combining external challenges and menace and internal pros and cons, and through GE matrix analysis and SWOT analysis, this paper eventually brings up with diversified development strategy of CDGM, which indicates transformation from previous mono-main business of optical glass to bi-main business: to convene resources, consolidate the core business of optical glass, and to climb to the top of optical glass industry in the world; to accelerate the construction of the new main business, precious metal production, while maintaining the other main business, the optical glass production, in order to build the strongest integrated capacity of precious metal production nationwide. After making clear of the strategy, the development strategy of two mainbusinesses is assured: strengthen the track and research of consumer digital cameras, projectors and security products to sustain the current market; further the expansion into SLR market; and lay emphasis on the entrance into car market and increase the input to make it the new point of future economic development in this firm. In respect of precious metal production, maintain and expand steadily the current market of optical glass and precious metal devices, and multiply the input in TFT precious metal devices, thermocouple and analyzing vessels, to make them the new point of profit escalation. At the same time, attention should be paid to the future of compound products and granular composite greatly promote the market share.Last but not least, this essay comes up with resource support and protection measures from strategic enforcement and control. CDGM ought to strengthen investment, financing, human resources, technology innovation and reform and reconstruction. Meanwhile, this paper carries out analysis on risks of market, technology, human resources and capital during the strategic enforcement process of optical glass and precious metal production.