A Research On Corporate Diversification Strategy

With the rapid development of China's economy,the total domestic economy is increasing.Although enterprises have gained more opportunities for development,they are also facing more and more fierce competition among the same industries.If enterprises stick to only one field and provide a single product and service,it will be difficult to adapt to the new economic situation,and the implementation of diversified development strategy will help enterprises to achieve economies of scale,effectively reduce production costs,more reasonable allocation of resources,but also can diversify the risk of enterprise investment and operation.Therefore,many domestic and foreign well-known large-scale enterprises choose diversification as a way of rapid growth of enterprises,enterprises through the implementation of diversification strategy,gradually strengthen their own strength,and eventually stand out in the fierce competition.However,although diversification development strategy is very helpful to the growth of enterprises,not all enterprises can effectively achieve diversification.Many enterprises fall into the mud of diversification because of the wrong formulation of diversification development strategy and misjudgment of the internal and external environment of enterprises.Therefore,how to correctly implement the development strategy of enterprises becomes a need.Topics to be further studied.This article focuses on the diversification strategy of enterprises,which is divided into four parts.Firstly,this paper expounds the concept and characteristics of diversification strategy,and the motivation and conditions of diversification strategy;secondly,it studies the diversification strategy of ZG Company,analyzes the internal and external environment of diversification strategy,and lays a foundation for the choice of diversification strategy of the following enterprises.This paper probes into the development motivation of ZG garment company's diversification strategy,including dispersing business risk,bringing synergy effect to the enterprise,restricting competitors and effectively exerting the potential of the enterprise,etc.At the same time,it also analyzes four bottlenecks faced by the diversification of enterprises,namely,resource bottleneck,market bottleneck,management bottleneck and operation bottleneck..Finally,to solve these problems,put forward relevant suggestions and countermeasures,including the determination of scientific diversification strategic objectives,timely choice of diversification strategic opportunities,cultivating core competitiveness of enterprises as a prerequisite for seven optimization strategies.