Research On The Influence Of Diversification Strategy On Enterprise Performance

Since the concept of diversification was put forward,the relationship between diversification strategy and corporate performance has always been an enduring topic in academia.With the acceleration of the process of world integration,enterprises are still expecting to achieve the goal of maximizing value behind the process of becoming bigger and stronger,which urges enterprises to take the diversification strategy as their way to expand their scale.China’s diversification began in the 1990 s or so.Compared with foreign enterprises,it started later.At this stage,the implementation of diversification strategy is still in a general state for Chinese enterprises,but foreign enterprises have begun to focus on the main business.Although there are many enterprises implementing diversification in our country,the results are mixed.How to effectively use diversification strategy to improve enterprise performance is a problem worthy of deep consideration.Compared with foreign countries,China’s outdoor industry started late,starting at the end of last century.After more than 20 years of development,the number of industries tends to be stable.The promulgation of the 13 th five year plan for tourism and the upcoming 2022 Winter Olympic Games in Beijing have brought great development opportunities to enterprises in the outdoor industry.However,at this stage,the legal system in the industry is not perfect,the internal competition is fierce,and the homogenization is more and more serious.In this context,it is of great research value to learn from the successful experience of foreign enterprises,to open up a diversified business strategy in combination with China’s national conditions,and to promote the healthy development of China’s outdoor industry.Beijing Road seeker holding group(hereinafter referred to as "road seeker")is the first enterprise in outdoor industry in China to implement diversified operation strategy.What are the reasons for its implementation,how effective the implementation is,and what kind of diversified operation strategy should be adopted by road seeker to maintain the competitiveness of the enterprise in the future development are all issues worthy of deep consideration.This paper first reviews the process of the Pathfinder’s implementation of diversification strategy;secondly,it analyzes the extent and motivation of the Pathfinder’s implementation of diversification strategy;finally,based on the financial data of the Pathfinder in the past decade of 2009-2018,it analyzes the effect of its implementation from the perspective of market performance,financial performance and motivation theory,and concludes that the Pathfinder has implemented many strategies The meta management strategy not only does not promote the growth of enterprise performance,but also makes the enterprise sink into the vortex of value loss.Through summarizing and summarizing the problems in the process of its implementation,and giving relevant suggestions,we hope to provide reference for the outdoor industry enterprises to implement the diversified management strategy.