Enterprise Diversification Is Conducive To Strengthening The Main Business

Many enterprises diversification We have been successful in our journey. Especially in the same field, the related diversification strategy around the core industry has achieved good results, which has become a business model worthy of affirmation and consideration by garment enterprises.

Haier's diversified layout once became a model praised by many enterprises. Before 1992, Haier spent seven years specializing in the production of refrigerators, making "Haier" the only well-known trademark in China's home appliance industry at that time.

　　 Armani The success of diversified operation can be summed up in one sentence: "the operation of aesthetic philosophy": the unique Armani style of fashion, classic, elegance, etc. is deeply embedded in each fashion men's wear brand and product line in the group. Fabrizio Dosi, CEO of Armani Group Asia Pacific, said to the media that the key to Armani's successful business strategy is to be able to position and differentiate different series according to the characteristics of each brand, and ensure that they all have Armani style.

Armani Group has always maintained independent development, but it is this independence that has freed it from the pressure from outside investors and obtained its own independent development. Independence means being able to make decisions independently according to the long-term development of the company, and also means being able to act quickly around the long-term strategy after making decisions. In many aspects, Armani operates the Armani Group in the same way as the original company, putting the needs of customers first.

According to Fabrizio Dosi, the aesthetic business philosophy is the consistent business model of Armani in the Chinese market. Last year, Armani's revenue in the Chinese market increased by 36% year on year, and the Chinese market share has grown strongly in the past three years. At present, Armani has 180 sales points in China, including direct stores and distributors. Armani plans to set up 35 new sales points every year, and this number will continue to grow.

China's famous fashion industry economic research expert Li Kailuo When talking about Armani's diversification strategy, he said that Armani's diversification is a strategy of integration around a core industry, which can be quickly implemented after formulating strategic objectives, independent and clear.

Diversified products are related to luxury life. Armani's originality and aesthetic ideas are taken as the support system for brand diversification, and the main business is taken as the core origin for related extension. This is a diversity of different industries in the same industry. That is, we don't talk about fashion in terms of clothing, but put Armani in a fashion industry and integrate different industries with aesthetics and design. In the long run, this diversification is worth studying and more in line with the development trend of the clothing industry.

The diversified road of the seven wolves can be described by clear positioning. On the road to diversification, the seven wolves first clearly put forward the positioning theme of "seven wolves - advocating a new culture of men's ethnic groups".

In 1996, Seven Wolves cooperated with Fujian Jinjiang Tobacco Monopoly Bureau to develop and produce "Gold medal Seven Wolf" cigarettes; In 1997, Septwolves launched the "Septwolves Golden Beer", which is positioned as a medium and high-end liquor; In 1998, Seven Wolves actively participated in the tea culture product industry.

In just a few years, Seven Wolves has successfully infiltrated every field of men's life with its unique brand charm - tobacco, beer, leather, clothing, etc. At first glance, it seems that these diversities are too wide and do not conform to the law of diversification, but in fact, the diversity of Seven Wolves is closely centered on "advocating the new culture of men's ethnic groups".

Originating from the accurate grasp of the male spirit, the company integrates clothing, cigarettes, alcohol, tea and other industries under the "male culture": clothing represents confidence and stability, cigarettes symbolize heaviness and thinking, alcohol shows unrestrained and bold, and tea emphasizes tranquility and reverie.

The main personality characteristics of men are all integrated into the products of all industries of the Seven Wolf. The seven wolves cooperate with the powerful and experienced enterprises in the industry, and take advantage of the "seven wolves" brand advantage to combine the strong, which undoubtedly makes its diversification more smooth, and ultimately makes the brand image reach an effective extension.

On the road of diversification, there are many successful models, but most enterprises still fail in their exploration. Summarizing those successful diversified enterprises, it is not difficult to see that diversified development should be based on their own development needs and conform to market laws.

Not every enterprise is suitable for diversification mode. For those enterprises that are eager to break through the bottleneck of enterprise development and intend to achieve greater improvement through diversification, diversification may not be a panacea. Before comprehensive measurement and research, enterprises should be cautious in choosing diversified development.

Generally speaking, only when the main business has core competitiveness and a leading position in the market, can enterprises conduct diversified operations.

When analyzing the development process of enterprise groups, relevant experts pointed out that the order suitable for enterprise development is: centralized development of core products - extension to relevant diversification - unrelated diversification.

That is to say, when choosing the business strategy, enterprises should have the idea of "first being practical, then being big". Otherwise, if blind diversification expansion is carried out and capital, technology and management cannot keep up, the new business will become a burden for the enterprise, and even a domino chain reaction will occur, which will endanger the survival of the enterprise.

For small and medium-sized enterprises with ordinary strength, unless the existing product market has been saturated, demand has declined, or competitors are too strong to maintain sales, blind diversification will inevitably expose enterprises to greater risks.

Li Kailuo stressed that whether enterprises choose diversification strategy can be considered in three aspects. First, it depends on whether the capital efficiency can be improved and the value can be improved.

The second is to see whether diversified development can enhance the voice of enterprises in the industry. While ensuring the survival and development of enterprises, it is also conducive to the promotion of sustainable competitiveness of enterprises.

The third is to see whether the balance between enterprise value, shareholders' interests and operating efficiency can be achieved. Today's enterprises can not only create profits, but also see whether diversification can help enterprises create value and create interests for shareholders for those listed enterprises or enterprises preparing for listing.

As long as these three aspects can be met, whether it is unit development or diversified layout, it is a choice in line with business philosophy. Faced with the development of the enterprise itself and the changing market, the enterprise should change everything by changing. According to the needs of the market, do not blindly and deviate from its own positioning. When thinking about diversification strategy, not only consider the current development, but also analyze the future prospects.

The market will give the best answer to whether the enterprise has diversified development.