A Study On The Diversification Strategy Of Dairy Companies

In recent years,the negative reports on domestic diary products were often seen on media,and the frequent quality issues of diary products challenged the consumers' psychological limit again and again.However,the monopoly of domestic diary giants and the entry of new competitors pose a great threat to the survival and development of local diary processing enterprises.Confronted with severe consumer trust crisis and fierce diary market competition,local diary processing enterprises have to appropriately adjust the development strategies on the premise of guaranteeing the quality of diary products,otherwise their business risks will increase and easily fall into dilemma.With an emerging diary enterprise A in Zaozhuang City as a research object,the analyses of its operation status and internal and external environments suggest that A's core businesses have fully developed due to the advantages of resources and technologies;yet,owing to the insufficient utilization of internal surplus resources,its market share has nearly approached a saturated state in Southern Shandong,and its development space is restricted,thus increasing A's business risks.In this context,single specialized operation cannot satisfy its development needs any longer.In order to seek for long-term development and increase profits,A has to recheck its strategic development direction.Based on the organic vegetable planting industry under operation and the eco-tourism industry under planning,concentric diversification strategies are developed for A.Furthermore,the synergistic effect model is adopted for the analysis of the synergy of newly developed industries and original industries in terms of production,marketing and management.Finally,A's specialized development strategy is strategically adjusted and determined as synergistic effect-based diversified development strategy.With diary products as its knock-out products,Diary Enterprise A also develops organic vegetable planting industry and eco-tourism industry.The development and planning statuses and market prospects of the new industries are analyzed,and relevant diversified development strategies are also proposed.These development strategies mainly include transferring the original advantages to the new industries,coordinating the new industries with the old ones,and developing specific implementation policies for diversified industries.The transferred advantages are reflected in the internal resources and capacities;the industrial coordination is mainly reflected in capital,development mode and internal business management.The implementation policies for A's diversified industries are expounded from multiple perspectives.In terms of the development of organic vegetable plating industry,countermeasures are proposed from the perspectives of talent cultivation,marketing channels and propaganda ways;as for the development of eco-tourism industry,countermeasures on the development of different functional regions,the perfection of supporting facilities and the building of professional bases are given.To some extent,these countermeasures guarantee the implementation of relevant synergistic effect-based diversified strategies for A.The significance of the study lies in that,by exploring and making use of relevant diversified strategies,in combination of the development environments of Diary Enterprise A in Zaozhuang City,corresponding planning on relevant diversified industries are conducted,and suggestions are given to help A diversify business risks,bring about new profit growth points and quicken its development.In the meantime,it is hoped that the research method proposed here will provide a reference for future diversified development of local diary enterprises.