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The Dilemma Faced By Chinese Clothing Enterprises In The Diversified Development Strategy

2013/7/12 9:28:00 38

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Diversified Development Strategy YOUNGOR Fir

in the 2012 year commodity quality inspection, "Shan Shan" down clothing and so on 6 < a target= "_blank" href= "http://www.91se91.com/" > clothing < /a > was not qualified in Beijing. This is not an isolated case. The frequent appearance of clothing enterprises' quality problems and the high storage condition of the entire garment industry make people have to think deeply about the correctness of the diversification strategy of the industry. On the road of specialization and diversification, the leading companies such as Shan Shan, YOUNGOR, and red bean may really have to think about how to balance the balance of strategy. 
 in fact, diversified development strategy itself is undisputable, but the main industry recession of a href= "http://sjfzxm.com/news/index_f.asp" > Shan Shan > /a "diversification strategy" reflects even two major problems: first, enterprises do not realize the optimization and upgrading of strategic management structure after rapid diversification; the continuation of the traditional single product line management structure leads to the whole management process out of control; the two is that blind diversification leads to relatively limited resources of enterprises or is stuck or dispersed, and the lack of overall high strength resources support leads to the ultimate decline of the main industry. The diversified predicament of Shan Shan and YOUNGOR fully embodies the weakness of strategic planning, and has become a microcosm of the dilemma of diversified development strategy of Chinese enterprises. 
 strong > distorted business mode /p >
Less than 3 years after the end of 2010 P, the quality of products of Shan Shan has been exposed for at least 4 times. From thermal underwear to cotton socks to down garments, the products of substandard products of Shanshan are "quite complete". 
 however, the real worry is not the repeated quality problems, but the correlation analysis of the structural distribution of Shanshan stock business and the current quality problems. Up to now, Shanshan stock has become one of the largest and most homogeneous suppliers of lithium-ion battery materials in the world. Lithium battery materials have replaced the original a target= "_blank" href= "http://www.91se91.com/" > textile "/a" clothing, becoming the first major business. According to the official website of Shanshan holding company, the current Shan Shan has been involved in finance, trade and real estate in addition to its clothing industry and its largest source of revenue. Take the real estate sector as an example. In February this year, Shanshan shares and the 3 companies of China Shipping (Group) Corporation constituted the 114 round of competition for a piece of land along the Huangpu River, but failed in Shanghai. Shanshan's investment in the financial and real estate sector has won impressive market achievements, but its declining status as the main apparel industry is an indisputable fact. 
Compared with the shares of Chinese fir, the road to diversification of YOUNGOR is somewhat bumpy compared to the shares of Chinese fir. Relying on the development of the clothing sector, YOUNGOR has diversified into the real estate sector. However, it is precisely this move that has caused it to suffer from serious real estate dependence. Now, a number of heavily funded projects are now caught up in the embarrassing situation of poor sales. The annual report shows that in 2012, YOUNGOR's real estate business accounted for 48.24% of the revenue, which surpassed the main garment industry, which seemed to be consistent with the situation of Shanshan stock. But as of the end of 2012, YOUNGOR's inventory balance amounted to 23 billion 473 million yuan, excluding the clothing business inventory amount of 1 billion 521 million yuan, the inventory of real estate business reached about 20000000000 Yuan, accounting for 70% of the last year's liquidity of YOUNGOR. 
 according to YOUNGOR chairman Li Rucheng, due to the loss of the financing function of the capital market in real estate market, the mixed operation of real estate and clothing has seriously restricted the overall development of the company. YOUNGOR will adjust the real estate business according to the total amount of funds and expand the production and operation of < a target= "_blank" href= "http://www.91se91.com/" > brand clothing < /a >, and return to the main garment industry. 
Less than P, there is also a red bean share. The company's 2012 annual report shows that the real estate business has a significant decline compared with the same period last year. In 2012, the net profit of the company decreased by 18.66%, and the main business income decreased slightly. 
 it is not difficult to find that under the framework of diversified development of clothing enterprises, real estate and financial investment, the clothing industry has become a tool for enterprises to take cash flow, and eventually these funds have entered the industry sector with high return on investment such as real estate, finance and so on, which eventually led to a change in the development cycle of the entire garment enterprise. However, the rapid diversification strategy of garment enterprises has obviously made the scale of the entire garment enterprises showing a distorted development trend, which is obviously a distorted development mode. 
 diversity is not guilty. /p >
 diversification strategy itself does not have the advantages and disadvantages. It is even a way to seek the optimal return on capital for different funds in different industries, but it will show different results according to different enterprises. Globally, there are not only some enterprises that have successfully realized the strategy of diversified development, but of course, there are many cases of failure of diversified development. 
Ge P will generally be regarded as synonymous with corporate diversification. Jack Welch, the former president, is also proud to say that "the common operation of various business segments makes the power of General Electric far greater than the simple stack of business departments." However, with the outbreak of the financial crisis in 2008, GE capital of General Electric's financial sector suffered heavy losses and plunged into investment losses, insufficient capital and a decline in credit ratings. Due to its drag, Ge declined its first profit since 2003, and its share price dropped from $37 in early 2008 to less than $10 in February 2009, or nearly 80%. 
 American DuPont Co (DuPont) has also contributed a classic case of failure to the global industry. After the oil crisis of 1973 and 1979, DuPont Co bought CONOCO oil company at an unprecedented price of $7 billion. According to DuPont's investment bank's calculations, DuPont will form a vertically integrated industrial layout such as oil production and Petrochemical Fiber. No matter how the market changes, it will remain invincible. However, as a result of the news of the DuPont Co takeover, its share price plummeted and finally had to choose the oil company to sell the merger and acquisition. 
 there are many cases in which global enterprises are declining due to the lack of diversified strategic planning. How to find a diversified development path that is really suitable for enterprises has become a difficult problem for enterprises. In fact, the essence of diversification strategy is not simply the accumulation of industrial plates, but the expansion of capabilities. This capability focuses more on two areas: one is management and the two is core technology. 
 the most important thing for enterprises to realize diversified development is to build up a management framework that can adapt to the diversified development strategy. That is to say, the whole internal control system should keep up with the quality problems of Shanshan stock company after diversification, and the disputes of YOUNGOR's real estate sector have been fully explained. That is to say, the premise of enterprise diversification is to rebuild business process, explore institutionalized management innovation mode, and form individualized and targeted management of various enterprise units. 
The diversification of P should not be a blind expansion of industry, but rather a development and supplement to core competitiveness. Taking Samsung Electronics as an example, it follows this principle in diversification layout, and finally forms a complete layout covering key components, key raw materials, key components and the whole machine, and the main line of this layout may be the extension and expansion of the core competitiveness of enterprises. On the one hand, the enterprises should give full play to the leading role of the main industry, rely on their own core advantages, extend their business scope to the fields that the original expertise can bring into full play, and on the other hand, take the "technology related" as the development route of the industry, and enhance the competitiveness through horizontal business expansion of the main business. 
 diversification is not guilty, but guilty is unable to find the direction and goal of diversification. At present, there are many disputes about the diversification and specialization development of Chinese enterprises. However, it is hoped that all enterprises can take their core competitiveness as the starting point and really explore their own way of development.