Business Diversification Development Study In JBL Die Cut Company

With economic development,enterprise is willing to survive and develop well in the competitive situation,which would not be good if only providing one specific product or only insisting on sole industry.Viewing modern enterprise history,diversification is the development way which most of modern companies will go through.Therefore,most of the companies in the world would develop various diversification business when moving forward to develop or enlarge expansion.Diversification business model is a strategy which requires management team to view everything from long term and global perspective.On one hand,diversification business model has lots of advantages,for example,it will bring more opportunity for enterprise,bring more profit for enterprise and create more opportunity for management team to coordinate the different business units.On other hand,diversification business model has some disadvantages as well,for example,it will distribute resources,enlarge expenditures,increase more opportunities for enterprise to make mistakes and damage core competitiveness.China has started market economy for a while,however,lots of companies have adopted diversification business model.Meanwhile,only a few companies,which developed diversification business model,have achieved success.What is the real reason to cause this failure?How we can achieve success when we are doing diversification business model?Combining with specific cases which companies did diversification business model in China and other foreign countries,the paper is being focused on JBL Die cut division in Suzhou.It indicated that the relative theory of their diversification strategy.It also analyzed the development status of JBL Die cut division in Suzhou.This paper mainly indicates that the real problems which JBL Die cut division are facing when developing diversification and the relative strategy how to resolve these problems.The paper mainly focus on the factors which enforce JBL Die cut division to develop diversification,the marks which indicate JBL Die cut division is at the right time to develop diversification and real problems which JBL Die cut division are facing when developing diversification and the relative strategy how to resolve these problems likewe indicated in the last section.The paper would be a good reference for the company to make and implement development strategy.It would be good for scalable development and market occupied.It would provide good reference for other companies in the same industry to development strategy.