Research On The Financial Crisis Of Suning.com Under The Background Of Diversified Expansio

In the current context of high-quality transformation and development,China’s overall economic growth rate has slowed down,with obvious overproduction.The overall market is showing an oversupply situation,and the competitive pressure of market participants is intensifying.This forces single industry enterprises to quickly change their production methods.Diversified expansion is the extension and expansion of an enterprise’s industrial chain,which is a strategic choice adopted by enterprises to seek development,diversify risks,achieve economies of scale and synergies,and invest in different fields and industries.Therefore,since the 21 st century,the trend of diversified development of enterprises in China has become increasingly evident.There are many enterprises that rely on diversified expansion to achieve significant profits,but there are also many enterprises that have severe asset depletion,limited main business development,increased financial risks,and even fallen into financial crisis due to the implementation of radical and inappropriate diversified expansion strategies.Therefore,exploring the relationship between diversified expansion and corporate financial crisis,avoiding the negative impact of diversified expansion,is beneficial for Chinese enterprises to better face the dual pressure of current industrial transformation and production mode adjustment.This paper adopts a single case longitudinal study,takes Suning E-Buy,a leading retail enterprise,as the research object,uses qualitative and quantitative methods to identify the financial crisis of Suning E-Buy,and analyzes the causes of the financial crisis of Suning E-Buy from the perspective of multiple expansion based on Z model and F score model and the relationship between each variable and internal and external,and concludes that multiple expansion is the main internal cause of the financial crisis of Suning E-Buy,At the same time,the unfavourable external business environment has further promoted the outbreak of the financial crisis of Suning E-Buy under the background of diversified expansion.In this direction,we put forward targeted solutions for Suning E-Buy from both internal and external aspects: internally,adjust the internal diversification strategy;Externally,always pay attention to changes in the external environment.Finally,the article gives the enlightenment for other companies to implement diversified expansion,which requires not only good internal and external environment,but also appropriate expansion areas,and also relies on expert strength to evaluate the expansion scale.It is hoped that it can provide reference and reference for enterprises of the same type to avoid falling into financial crisis due to diversified expansion.