Research On Strategy Of Diversified Development Path Selection Of H Company

As we all know,when company’s scale grows to a certain extent,entrepreneurs always take a relative radical and expansive development approach what is named as diversification strategy to keep an incremental growing.However,what the condition and what kind of window period does company implement the diversification strategy,what the motives and risks do entrepreneur take.How to effectively control When risks arise.how to choose the way of diversification strategy and prevent companies from developing disorderly to bankrupt because of mistakenly choosing the way of diversification strategy,which occupied several decision-maker’s minds for a long time.It is of practical significance for this paper to research the above-mentioned problems.Company H is a construction management enterprise specialized in construction mechanical and electrical engineering.After 15 years of development,it has begun to take shape.However,under the influence of macro policies,the real estate industry and construction industry have contracted in recent years,and the development of the company has encountered a bottleneck.After several trials,the company has implemented diversification strategy through using existing resources.The new diversification strategy combines with the relevant industrial policies and market demand,and leads the company H to achieve some progress.This paper takes company H as a research subject,and the main idea is founded on the theory of business strategy management.Firstly,this paper introduces the background of subject selection and the meaningfulness of research,cards the theory of strategy management and common tools of strategy analysis,and sorts out the domestic and foreign literatures and present research situation.Secondly,the paper analyzes internal and external competitive circumstances faced by company H,applies VIRO model,PEST model and the model of Porter’s Five Forces to study and assess the advantages and disadvantages of resource and ability,the opportunities,and threats of development of company H.Based on the prepared research works,this paper illustrates the selection factors of implementing diversification strategy,the factors of platform cooperation and diversified ways of collaboration,investigates the method of quantitative models taking diversification strategy to propose a detailed schema,This paper proposes to use the Monte Carlo simulation method to calculate the expiry options,combing the VRIO model to analyze the invested projects,and judge the competitive advantage of their resources and capabilities.Therefore,it derives the deviation of the project investment as the basis for the company’s diversification path selection.which is plausible for implementation of company H’s diversification strategy.Last but not the least,the paper takes the aspects of human resources,financial resources,material resources,organizational strategies,and innovative strategies to give the solutions and advices,which is beneficial for companies to enhance the corporate comprehensive competitiveness and is instructive for company’s long-term development.