Research On TCL Technology’s Divestiture From The Perspective Of Strategic Transformation

Since the reform and opening up,China’s economy has experienced high-speed growth for more than 30 years,and now it has gradually entered a period of medium and low-speed growth.In the past,many companies followed the wave of mergers and acquisitions to expand rapidly and adopted a strategy of diversification.However,in times of economic downturn,blind diversification will bring a series of problems to enterprises,such as low management efficiency,poor resource allocation,increased operating risks,and lack of core competitiveness.In this context,more and more companies have begun to shrink capital through asset divestiture to avoid the risks brought by excessive diversification.However,due to the late start of domestic asset divestiture,there are still deficiencies in the study of asset divestiture cases.Therefore,it is of theoretical and practical significance to study the application of asset divestiture related theories in my country’s actual national conditions.Taking TCL’s technology asset divestiture as an example,this paper uses the case study method to explore the behavior of corporate asset divestiture by collecting relevant public information about TCL’s asset divestiture and relevant literature on asset divestiture.From the perspective of strategic transformation,it studies the behavior of enterprise asset divestiture,and analyzes the internal and external reasons for the strategic transformation of enterprises through asset divestiture,the specific path and related decisions of strategic transformation through asset divestiture,and the market reaction and financial performance of strategic transformation through asset divestiture.Influence,and evaluation of the effect of strategic transformation through asset divestiture,and finally summed up the enlightenment and suggestions for domestic enterprises with similar problems through case analysis.This paper examines TCL Technology’s corporate profile before and after its asset divestiture and the competition in rela ted external industries,and analyzes its business structure,organizational structure and financial performance before and after asset divestiture and strategic transformation.For enterprises that are operating and in urgent need of transformation of traditional business,asset divestiture is the first choice for enterprises to carry out strategic transformation;before proceeding with asset divestiture,it is necessary to fully consider the company’s own conditions and the macro environment of the external market to formulate a reasonable asset divestiture plan in order to achieve successful implementation.Strategic transformation;after the divestiture of assets,it is necessary to re-allocate resources rationally,and closely combine resource allocatio n with corporate strategic requirements.