Research On The Effect Of Enterprise Diversification Strategy From The Perspective Of Value Chain

The development of science and technology and the prosperity of economy accelerate the arrival of the era of mobile Internet of things.In recent years,under the realistic background of supply-side reform and industrial transformation and upgrading in China’s economic field,some enterprises in traditional industries are constantly “Touching the net”to adapt to the trend of the new economic environment.For these enterprises,the traditional single industry strategy is difficult to provide sustained impetus for their development,so they have focused on diversification strategy,trying to find new economic growth.At the same time,with the gradual advancement of China’s market-oriented reform and high degree of industry competition,the competition among enterprises has gradually evolved into the game among the value chains in which enterprises are located.As an important tool of enterprise strategic management,value chain theory is widely used in identifying its own position and formulating appropriate development strategy.From the perspective of diversified production and operation layout of household appliance enterprises in traditional manufacturing industry,this paper focuses on the strategic transformation and diversified strategic practice of Midea Group,a representative enterprise in the industry,from the perspective of value chain,this paper investigates the influence of diversification strategy on the construction of full value chain of enterprises,and hopes that it can be used for reference by other home appliance enterprises.At first,this paper expounds the theoretical basis of the research,namely value chain theory,strategic management theory and synergy effect theory.Secondly,the paper sorts out the literature about diversification strategy,value chain and evaluation of strategy effect,and confirms the necessity of this paper.Then,this paper expounds the status quo of home appliance industry,and analyzes the strategic transformation factors of home appliance enterprises from the perspective of performance development,synergy effect and cost-benefit.On this basis,this paper selects Midea Group,the leading enterprise in household appliance industry,as a case study.This paper introduces the overall situation of Midea group from the perspectives of the development and evolution of the enterprise,the governance structure and the performance of the capital market,and introduces the financial performance of the enterprise from the aspects of the financial situation,the profit situation and the cash flow.Thirdly,this paper divides Midea Group’s diversification strategy into related diversification and non-related diversification according to whether it is related to its main business,and summarizes its characteristics,from the internal value chain,vertical value chain and horizontal value chain,the value chain system of Midea group is elaborated in detail.Finally,this paper analyzes the reasons for the diversification of American groups from the perspective of market competition,strategic management and value chain optimization,combining with strategic management theory,this paper analyzes the matching degree of financial strategy and diversification strategy combining with the investment and financing activities of enterprises,and analyzes the effect of implementing diversification strategy of Midea Group by using EVA model from the angle of value chain.As a conclusion,the paper finds that Midea’s group diversification strategy is based on the value chain building.From the strategic deployment point of view,the diversification strategy is not only the deployment of R & D and production,but also the control of the overall strategy of the enterprise and the coordination of related financial strategies.From the implementation effect,the diversification strategy helps Midea group to realize the full value chain and create value for the enterprise.Midea group realizes value chain diffusion through related diversification,realizes value chain extension through vertical diversification,and further builds value chain complementary pattern through non-related diversification.Although the overall diversification strategy is conducive to the development of enterprises,but the strategy also has decentralized R & D costs,business integration cycle and other shortcomings.Through the study on the diversification strategy of Midea Group,it can also provide some reference for the strategic transformation of household appliance enterprises and other traditional manufacturing enterprises.First,enterprises need to choose a reasonable diversification strategy,select a reasonable target industry,choose the right way to enter,from the related diversification layout to non-related diversification layout step by step.Secondly,enterprises should establish the concept of value chain analysis when they are in the process of strategic transformation,analyzing the key links in their own value chain from the perspectives of internal value chain,vertical value chain and horizontal value chain,and in view of the key link formulates suits own development the management strategy.Third,after the implementation of diversification strategy,enterprises should pay attention to business integration,establish links between different business departments,play synergy.