Research On Diversification Strategy Of CY Group

With the deepening of economic globalization and information technology,the structure of China’s consumer market is becoming more complex and diverse.In order to actively cope with the increasingly severe competitive environment of enterprises and further seize market space,more and more enterprises choose to embark on the road of diversified business development.CY Group,as a large state-owned enterprise,has firmly pursued the strategy of diversification for several years.Existing research shows that diversification can disperse market risk,and it is not conducive to giving full play to the advantages of industrial scale agglomeration,which may eventually have a negative impact on the financial performance of enterprises.With the change of macroeconomic situation and policy in China,especially the deepening of structural reform on supply side,how to correctly guide the development direction of diversification strategy of Group,how to effectively coordinate the overall scientific development of diversification industry of group enterprises,so as to maintain the long-term and stable growth point of new business profits,and restrain the negative effect of diversification strategy is not only the current situation.The core of the competition strategy focus of Group is also one of the problems urgently to be solved by enterprise management.Based on the literature review and theoretical foundation of diversification strategy,this paper firstly uses PEST,value chain,SWOT and other tools to analyze the internal and external environment of diversification strategy.Secondly,it analyses the development status of diversification from the perspective of diversification management and diversification equity investment.Then,it evaluates diversification strategy by statistical analysis.Implementation effect.The results show that:(1)diversified equity investment is concentrated in the industrial manufacturing industry,supplemented by producer services;(2)low industrial concentration,the relevant diversification advantage is not prominent;(3)diversification has a discount effect on the financial performance of the group.Finally,according to the analysis of the development status and implementation effect of diversification strategy,under the guidance of the three principles of optimal path design,specific optimization schemes are designed from the group level and business level.This paper not only provides areference for the research and evaluation of enterprise diversification strategy under the background of economic restructuring,but also provides a theoretical path with practical value for optimizing the diversification strategy of state-owned enterprises.