Research Of S Real Estate Company's Diversification Strategy In Medical Cosmetology Area

S real estate company,a member of S group which was founded in 1983,was listed in the Shenzhen S tock Exchange in year 2005 and ranked th e first 20 of China' s real estate firms.S company started its busin ess transformation in cosmetology area from 2015.This article majorly studied S company's diversification strategy in cosm etology area.By doing this research,the author would like to give som e suggestions to companies who have similar conditions.In this article,SW OT analysis,PEST analysis,Diamond Theory and m any other methods were used to f ully analyze both in ner and outer environm ent of S com pany.This article will f ocus on analyz ing the necessity,rationality and risks of the transformation in medical cosmetology area and give suggestions on the future strategy.This article can be divided in to four major parts.The firs t part will give background information about S com pany,review re lated published article s and describe the theories and research methods being used in this article.T he second part will discuss both inner and outer environment of S company by using macroscopic analysis,industry analysis and financial analys is.The outer environm ent will include the real estate market and cosm etology market.The inner environm ent will inc lude the la nd reservation,cash flow,cost control etc.The third part will give a brief overview of S company's diversification strategy in cosmetology area and discuss its rationality.The conditions of the China-Korea joint venture strategy,the medical cosmetology hospitals merger strategy and the strategy of enteri ng into cosmetology-related medical devices areas will be discussed and suggestions will b e given.The last part will bring forth the conclusions,shortcomings and prospects of this research.According to this research,S com pany has abundant cash flow and good business operation,however the policy in Nanjing real es tate market is becoming stricter and the trade volume is shrinking.As the cosmetology market in China is growing very fast and profitable,the overall diversification strategy of S company from real estate to medical cosmetology is reasonable.As for its detailed strategies,the China-Korea joint venture strategy and the m edical cosmetology hospitals merger strategy m ake sense,but the strategy of entering into cosmetology-related medical devices areas seemed too early.