Research On Diversified Development Strategy Of Jiangsu H International Group

With the rapid development of economic globalization and the market economy in China, the traditional foreign trade industry is experiencing changes in the market. The changes of macroscopic environment bring opportunities as well as great challenges to the industry. They force foreign trade companies to rethink the future development and transformation direction of their traditional businesses. Diversification strategy is often used in enterprises’ operation and practice in different means and modes. Scholars find that diversification is an effective way for foreign trade companies to achieve sustainable development when they study the future development strategies of foreign trade companies.In fact, as an important part of enterprises’ growth strategy, there are still some problems when implementing diversification strategy. There is little research on the combination of specific industry and the development mode of diversification. To some companies, although diversification strategy brings performance growth in the early period, because of the lack of appropriate theoretical guidance, it will not sustain for long-term.The domestic and foreign literatures about the research are summarized in the first section, including the theories of foreign trade companies’ development and diversification strategy. The followed is a simple sorting of the last studies of foreign trade companies in the aspects of their diversified development accomplishments and internal problems. This paper takes Jiangsu H International Group as an example for the case study. In the process of diversification, based on the principle of pluralism moderate, Jiangsu H International group always focuses on its main industry and gradually forms its successful diversified business model. The experience of the H group brings great referential significance to other foreign trade companies. On the basis of internal and external environment analysis framework and the field survey results, the advantages, weaknesses, opportunities and threats of the group are summarized. After the analysis of the reasons and specific measures that the group take on the way of diversification and the evaluation of the implementation effect, reasonable suggestions are given for strategic adjustment.Through the analysis of the paper, the founding is that foreign trade companies must follow the principle of moderate diversification that is to ensure the steady growth of its main business and build the core competitiveness of the main industry. Foreign trade companies need to create idiomatical corporate culture and management model, at the same time, the companies should also pay attention to the employees’ subjective initiatives in order to fully mobilize the potential of human resources. Establishing a sound mechanism for talent management, training key personnel and using of modern information technology are also necessary.