The Research On Concentric Diversification Strategy Of MK Asia Company

With the continuous development and maturity of Asian society,demographic dividend has gradually disappeared.Nowadays,the economic structural changes that the manufacturing industry is facing,such as technological changes,mode changes,product changes and service changes.The development trend of the domestic and overseas markets tends to be fast,deep,broad,complex,and extremely fruitful.The changing trend of the Asian economy from the initial conditions of competition from single market capacity,unspoken market rules,peer competition,conquer market share by defeating rivals,consumer consume patterns,on overlooking production costs continue to evolve into virtual space,cross-substitution,and an evolution of chip technology,changes in models,reorganization of links,sublimation of consumer culture experiences,informatization,and networking internet plus.Leading to the complexity of the economic chain in today's era,the butterfly effect is very significant,and a mono business model is easily affected by changes in regional markets and local politics.It is very challenging for a company to rely on a single product or market to develop smoothly.Ultimately,we should intertwine with the related elements of various factors.This article analyzed the external macro environment of automated medical equipment industry development trend in Asia,by using the Michael Porter's competitive strategy theory via Porter's five-force Model,SWOT analysis,and value chain analysis methods.Analyze the internal advantages and shortcomings of MK Asia Company and the changes in internal and external environmental economic structure.Select the appropriate diversification strategy model,development strategies and suitable regions,formulate practical strategic goals through theoretical strategic analysis.According to MK's core technology assembly strengths,we identified the strategy of concentric diversification is up most appropriate,and the strategy implementation method as well as safeguard measures.Re-build a new Asian organizational structure.For example,remodeling the organizational structure,diversification of business processes,enhancing of supportive departments with synergies,and improvement of Asian MK corporate governance and self-care structure.Risk control management to prevent the leakage of core technology,the outflow of talent,roll up diversification strategy methodology,capital flow control,and collaborative from two offices.In the irrelevance of business contexts,relevance is found and certainty is created in uncertainty.The appropriate concentric diversification strategy will be developed into suitable areas for the company's own advantages and proper management will be used to increase the profitability of the company.