The Study On Diversification Strategy Of Dexinsheng Company

In2010, Chinese synthetic diamond output reached9.22billion carats, accounting for about88%of the global diamond monocrystal capacity. In the next few years, the demand for Chinese synthetic diamond will grow at over10%annually. On the other hand, the average CAGR of the export of Chinese synthetic diamond has been37%in recent years. It can be expected that the synthetic diamond manufactures will have to face fierce competitions in the following years due to the over capacity.Beijing Dexinsheng nonmetal materials Co., Ltd is a high-tech company in China, which is engaged in the manufacture of synthetic diamond for more than10-years.In the last10years, Dexisheng company never give up its faint on innovation and quality,and finally achieve competitive edge. In the next few years, the executives of company must consider how to maintain the advantage. All issues, which could have influences on the strategy of the Dexinsheng, have been identified by using PEST analytic tool based on the current situation of the Dexinsheng including the external environment, Dexinsheng techniques, synthetic diamond market, and competitors. The internal resources including management capability and financial situation of the Dexinsheng has been revealed in the issue, followed by SWOT analysis. As a result, the strategy for the overall development of the Dexinsheng has obtained:focus on synthetic diamond business, become the leader of the industry in terms quality, capacity, innovation, and standard.The key factors, which could affect the strategy of the Dexinsheng, have been pointed out in the thesis, including: innovative mechanism, human resource, management system, marketing and brand strategy, and corporation culture, etc. This study could not only be used for the development of the Dexinsheng, but also could be used as a guidance for other synthetic diamond manufactures in China.