Study On Diversification Strategy Of Etsong Group

Qingdao Etsong (group) co., LTD is a wholly owned subsidiary of Shandong Tobacco Group, with cigarette auxiliary material processing as its main business. Etsong Group has adopted Diversification Strategy and has made certain achievements in Diversification Strategy. However, there’re still several problems in its Diversification Strategy. The paper studies the Diversification Strategy of Etsong Group based on Core Competence, gives out advices and suggestions to Etsong Group and provides a reference for other Diversified enterprises.Firstly, the paper expounds theory of Diversification Strategy and core competence. Secondly, it studies the core competence of Etsong Group, elaborates the Group’s core competence with VRINE model and evaluates the Group’s core competence with fuzzy comprehensive evaluation method. Then, it defines the Group’s Diversification Strategy and analyzes the Group’s Diversification Strategy with SWOT Analysis and the Group’s core competence. At last, it gives out advices and suggestions to Etsong Group.The main study methods of this paper are Empirical Analysis, Case Analysis. Historical Analysis and other methods, combining Qualitative Analysis and Quantitative Analysis. The main results of this article are as follows:Devides the competence of Etsong Group into five aspects and 15 subdivision abilities, arranges them according to their importance, and finds out the Core Competence; Evaluates the Core Competence level of Etsong Group, judges it as good:Analyzes the problems of the Diversification Strategy of Etsong Group;Seeks out that the Diversification Strategy of Etsong Group conforms to the external environment, internal conditions and actual needs; Puts forward the guiding ideology and strategic layout; Puts forward the implementation of the strategy.The innovation points of this article are:the innovation in topic selection, choosing the Diversification Strategy of Etsong group, which will enrich the research literature of Diversification Strategy of tobacco related enterprises:And the innovation of the research methods, studying Diversification Strategy based on the analysis of the Core Competence, using VRINE model, fuzzy comprehensive evaluation method. SWOT analysis and other research methods, which will provide an example of using the research method for strategic analysis.