What Is Firm Diversification?

Enterprise diversification strategy refers to enterprises engaged in production and operation activities in areas outside the scope of the original leading industry. It is an enterprise development strategy as opposed to a specialized business strategy.

Corporate Diversification Strategy

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Enterprise diversification strategy refers to enterprises engaged in production and operation activities in areas outside the scope of the original leading industry. It is with specialization

We believe that whether a company wants to conduct diversified operations depends on the actual situation of the enterprise, and the main issue should be the choice of the way of diversified management. American GE and Chinese

We say that companies choose to implement

When an enterprise decides to carry out diversified operations, which new field the enterprise enters and which diversified business development strategy to adopt, it is also an issue that corporate strategic decisions cannot be avoided.

Corporate strategy is the direction of the company's long-term development, development goals, business development and

How does an enterprise enter a new business field? In the process of entering a new business field, the company must grasp the following four options:

1) Choose a good time. Immature timing or missed timing can cause strategic passiveness. Entering too early will cause problems due to insufficient preparation of enterprises; entering too late will cause entry failure due to delays in fighters.

2) Choose a good area. When enterprises enter new business fields, they should pay attention to choosing the fields to enter while seizing the opportunity. In the new field, we should also pay attention to selecting new partners. If the cooperative company is turbulent and we have no control over it, this will definitely cause a break-up in the future and waste good opportunities for the development of the company.

3) Choose a good order. This means that companies should have a thorough and meticulous plan when entering new business areas. Which industry to enter first, and which industry to stand in before entering, should have a detailed plan.

4) Choose a good way. There are many ways companies can enter new business areas. Whether to set up a new enterprise by itself or mergers and acquisitions; whether to form alliances with other enterprises or to hold or participate in shares should not be arbitrary. Enterprises should make prudent decisions based on the overall requirements of their strategic goals and their own actual conditions.