The Financial Decision Analysis Of Electronic Commerce Enterprise Diversification Strategy

With the development of the times,e-commerce has become an emerging industry.In 2016,the domestic e-commerce trading market capacity is second to none in the world,and e-commerce trade is estimated to be as high as 20 trillion yuan,more than retail sales of consumer goods.One-tenth more.As a new transaction method,e-commerce brings convenience and benefits to mankind.However,with the intensification of business competition,various e-commerce companies have begun to encounter various problems.This shows that how to find a way out of complex competition has become a problem that all e-commerce companies must face.Diversity,as an alternative,has been highly valued by various companies.Some companies use the diversification strategy to develop rapidly and quickly become well-known companies;others have gradually declined due to unsuccessful diversification.The ultimate performance of unsuccessful diversification operations is mostly reflected in the levels of debt exceeding,large-scale loss,and even closure.Scholars have been conducting a lot of research within the scope of the comprehensive disciplines of company strategy and management mission to achieve better corporate strategy,and have achieved remarkable results;however,because the understanding and discussion of financial strategy is not yet complete,the current research The results still do not give adequate explanations for diversification strategies,and the research on the analysis of financial decisions for e-commerce companies' diversification strategies is even rarer.Therefore,it is far-reaching to explore the diversification strategy of the e-commerce industry from a financial perspective.The article looks at a large number of previous scholars' research on diversification strategy and financial decision-making.First,it uses a normative analysis method to give an overview of the relevant literature,and elaborates on the diversified development strategy and the theoretical basis of financial decisionmaking,and then establishes this quantitative analysis model.The four-quadrant analysis method is used to classify non-related and diversified businesses into four categories: problem business,Taurus business,star business and thin dog business,and then make special decision-making methods for each business category.The fourth part takes a typical e-commerce company JD.com as a case to analyze its diversified development history,basic financial status and financial capabilities,and applies the methods of regression analysis,cost-benefit analysis,and Boston matrix to its diversified development strategy.Decision analysis.Finally,the article's results are summarized and the article's flaws and future exploration goals are proposed.The innovation of this paper is mainly to combine the diversification strategy and financial perspective,and analyze the representative e-commerce enterprise case company-Jingdong.Through research,the following conclusions are drawn: The company selects a new diversified business and should at least meet one of the two conditions that the unit's variable cost of the business accounts for a lower proportion of the price,or that it can reduce the fixed cost allocated to each product.Make the company no longer lose money or even turn it into profit.From the perspective of non-relevant and diversified decision-making,companies that are not related to diversification can not only make up for losses on the whole,but also can create sufficient cash flow for the company at a certain level.Through the analysis of the Boston Matrix,the company should develop a different development strategy for each business,and develop a vital Taurus business that can provide stable cash flow.