The Analysis Of The Financial Performance Of Scch From The Perspective Of Diversification Strategy

In the rapidly developing market economy environment,corporate strategy is related to the survival of enterprises,and diversification strategy is the "shortcut" for most companies to realize strategic transformation.From Qingdao Haier to Shanshan,whether related to diversification or non-related Diversification,companies have successful cases,precisely because of this,diversification in the eyes of entrepreneurs is seen as a panacea in corporate bottlenecks.In recent years,the home appliance industry has developed rapidly and the competition is fierce.Along with the improvement of people's living standards and upgrading of consumption structure,the rise of home appliance expansion of Internet companies such as Xiaomi and LeTV,and home appliance industry have begun to expand in terms of market share,channel construction,and industrial intelligence upgrades.Intense competition.As a veteran TV manufacturer,Sichuan Changhong,after China's accession to the WTO in 2001,faced the pressure of domestic competition and the impact of international household electrical appliance companies,Sichuan Changhong chose to diversify its development.At present,Sichuan Changhong is not just a TV maker,but also a Internet technology companies.However,Sichuan Changhong's leading television player with diversified development has already been seized.The air-conditioner refrigerator market is also facing fierce competition.From the time it was listed,the blue chip stocks have become the current performance stocks,and the corporate performance is worrying.First of all,this article combs relevant literature on diversification and performance research among scholars at home and abroad,expounds relevant theoretical basis,divides the diversity process of Sichuan Changhong HHI index,and uses the Porter Five Forces model to analyze the industrial environment.Analyze the motives of diversification strategy implementation.Secondly,by analyzing product operating income and profit matching and the establishment of BCG matrix,it is found that diversification does not bring about the so-called "premium" effect to Sichuan Changhong,of which unrelated diversification is unsuccessful;Again,the article uses traditional financial indicators and EVA to conduct a comprehensive analysis of diversified performance.The study finds that SichuanChanghong's various financial and EVA values after the implementation of the diversification strategy are quite different from those of the industry.The diversification strategy causes have not been realized;The paper puts forward relevant suggestions:divesting non-core businesses,focusing on the home appliance industry;increasing scientific research investment,improving core competitiveness;basing on the local market,realizing industrial renewal;and emphasizing new development opportunities under the upgrade of consumption structure.