Sijia Plastic Diversification Strategy

Currently, PET bottle packaging industry is a sunrise industry, the national indu strial policy focused on it, which has big market space and business development op portunities in the future. As it has fewer entry barriers and technical requirements tha n other industries, it is relatively easy to enter and highly competitive. Facing the fier ce competitive environment, Sijia Plastics industry co ltd., which has a certain influe nce in this industry, turn its attention to the development of diversification to enhanc e market competitiveness and expand market space. This article is based on diversifi cation theory and corporate life cycle theory, analyzed diversification-oriented strate gy and development process and effective in the Sijia Plastics Industry co ltd., propo sed recommendations on specific issues and future strategic direction exist on the div ersification strategy, as follows.By analysis diversification strategy orientation and effect in Sijia Plastics Indust ry co ltd., found that investors have not achieved the expected economic benefits, sin ce the implementation of the strategy, overall, the diversification strategy is a failure. That is, in human resources, capital, management and other strategic resources und er conditions of inadequate reserves, Scala Plastics Industry should not be blindly int o the non-related industries which unrelated with the original plastic industry, such a s the hotel industry. Its implementation of cross-sectoral unrelated diversification is wrong. Mainly as follows:First, the implementation of the strategic mistakes unrelat ed diversification, namely enterprises to enter the hotel industry and the plastics indu stry which correlation is not only weak but also the lack of linkage and complementa ry effects. Second, enterprises have accumulated deficiencies. In human resources, st rategic resources such as capital and technology accumulation insufficient, blindly i mplementing diversification, the consequences can be imagined. Third, enterprises a re small, weak anti-risk ability. As a local private enterprise, although there are certai n capital accumulation, little known in the industry, but put aside his mastery away,a nd involve unfamiliar hotel management and eco-tourism et al., is bound to be disper sed enterprise energy, weaken the anti-risk ability, operating in the slightest sign of t rouble, it will affect the overall corporate strategy, business development to cause un necessary losses and volatility. Fourth, the implementation of unrelated diversificatio n weakened competitive advantage. As enterprises transferred major human, material and financial resources to the hotel management and eco-tourism, making the comp any the main industry has been greatly affected, companies in the plastics industry’s competitive advantage is also greatly reduced.To enhancing the competitiveness of enterprises and carrying out the strategy of diversity, it needs to do the following. Firstly, Its size and cultural importance are akin to that of Sijia Plastics industry co ltd., they should exercise vertical integration strategy, wich can extend industry chain and expand. Secondly, they should always be committed to the enterprise and customer, and exerciseproduction and marketing integration path to acquire green innovation and the most effective solution.