The Research Of YD Group Diversification Strategy

Diversification strategy is an important strategic choice in the process of enterprise development. It has an important role to the growth of enterprise, but it also brings management risk to the enterprise operation, must be chosen carefully. Right business strategy carried by enterprise creating a lasting long-term competitive advantage is the important factor to success or failure of the enterprise.First of all, paper expatiates on diversification strategy related theory comprehensively, including the meaning and type of enterprise diversification strategy, the diversification situation of study both at home and abroad; the motives and patterns of diversification operation and the factors that affect diversification strategy. On the basic of all, YD group accumulated the lessons learned through the process of diversified operation former years, discover the problems that the key state-owned big enterprises pay attention on the diversified operation, and puts forward the conceive about the long-term strategy of diversification to YD group.Through PEST & SWOT analysis method a comprehensive analysis for the business external environment and internal strengths advantages and disadvantages appeared in the paper, it points out that only with implementing right diversified business strategy. It also proposes YD group’s diversified objectives and specific measures: improve capital operation and financial management Level; advance industrial restructuring and cultivate core competitiveness; establish modern enterprise system and optimize organizational structure; construct Learning Organization and implement talents strategies; accelerate science innovation and raise technical level; build YD brand and enhance corporate image in order to provide powerful support for diversified operation.Based on business state-owned enterprises practice, the paper has a strong practicableness and it has practical guiding sense to the long-term development of YD group. Meanwhile, it would be an example to formulate and implement of other enterprise diversified business strategy.