A Study Of Refocusing Strategy

With economic globalization and the development of new technologies, refocusing strategy has become new strategic direction of highly diversified firms. Refocusing strategy theory was brought into China early in the 21st. It is undeveloped, particularly in practical theory.In 2005, Sacon Group divested the air-conditioning business, returned to the field of kitchen and toilet appliances, and received great achievement. It has representative and extensive practical significance to study Sacon because of the uniqueness of China's kitchen and toilet appliances industry.Therefore, this paper analyzes the reasons, steps, effect and the main problem faced by Sacon refocusing. Meanwhile, this paper attempts to introduce a new perspective of communication. It holds that the process of strategy adjustment is also re-positioning process. The enterprises should pay attention to the corresponding brand communication to make consumers subjective cognition consistent with objective existence of the enterprises. The results show that there are three steps to implement refocusing strategy: First, deciding core business. Enterprises can make use of the-Five-Force model of Porter to analyze industry environment and choose correct direction of development; Second, returning to core business. Enterprises can abandon non-core business by divestiture, spin-off or business outsourcing and so on. It is very important to properly handle the problems arising from the refocusing to avoid rumor on the enterprises failure; Third, rebuilding core business. If enterprises increase investments in technology, they will create better relative quality and become experts. Furthermore, if they pay attention to communicate with consumers and strengthen their new positioning, they will become specialist in target consumers mind.