A Research On Diversification Strategy Of SGS China

SGS(China)is a third-party inspection institution that is a joint venture between SGS group and China standard technology development co.,LTD.,which provides inspection,testing and certification service.Chinese international trade and the awareness improvement of quality and social security has an increasingly development in past twenty years,it greatly promote the development of the third party inspection and certification industry in China.The third party inspection and certification body,as an independent and impartial institution of the transaction parties,which plays an indispensable role in the development of global economic integration.Especially in the international economic and trade exchanges,it could eliminate trade barriers,ensure quality and safety,improve environmental awareness and maintain international economic development,therefore,each government put it on a great attention.Based on SGS(China)as an example,this paper combined with the domestic and international diversification strategy and other related research results of the theory of diversification strategy.Through studying the diversification strategy of SGS(China),it provided the optimized solution proposal for its diversification business,and improve its capability of sustainable development and market competition.This paper can be divided into three parts,the first part was introduction,which mainly introduced background and significant of research,ideology and methodology of research.The second part was literature review,which introduced the theory of diversification strategy.The third part was main body part of case,it mainly introduced and descripted background of the case of SGS China,development of the third party inspection and certification industry,current situation and development dilemma of diversification strategy management of case.Based on diversification strategy theory and SWOT analysis tool,this paper analyzed its diversification motivation and the root cause of diversification development problems.This paper put forward the optimization solution proposal and implementation methods of the problems of diversification strategy development of SGS China.Thus,this paper got the conclusion about developing effective diversification business combined with its core competitive capability.It is important reference and enlightenment significant for other third partyinspection and certification to develop diversification strategy.