IU Smart Home Company Diversification Strategy Research

In recent years, new concepts and possibilities in the Smart Home is made possible with the development of the "internet of things", bit data, and cloud computing. From traditional appliance makers to Internet Titans, regardless of them being established giants such as Apple, Samsung, or exciting new entrants such as Xiaomi and Haier-all are offering smart hardware. This is also spurring the likes of Baidu, Alibaba and Jindong to dedicate resources at building their own ecosystem. Every player has a game plan. This has undoubtedly given enormous rooms for imagination for China’s Home Automation industry, but at the same time, unprecedented challenges. Interdisciplinary integration is the trend.This paper focuses on IU, a leader in Smart Home. It has continuously devoted itself to this field and started to expand its markets to other fields given market uncertainties. The paper examines and analyze IU’s Diversification Strategy, based on Diversification Strategy and its related theory, deploying PEST and Porter’s five forces to examine the external environment, then progressing to studying the internal environment, considering threats and opportunities. The paper concludes that IU should undertake SO strategy, further building upon its core competencies and setting related Diversification Strategy, this was made possible by conducting SWOT analysis. Through analysing Diversification Strategy feasibility studies, further demonstrating that a Diversification Strategy is the best fit for IU; maximising resource utilisation, delivering core competency, and diversify market risk, increase the impact on the markets.Later, the paper discusses the setting and planning of the Diversification Strategy, and offers solution to technical and market expansion. Given that the project is an on-going effort, the paper also raises points on implementation of the said strategy and considers several risk factors and how to mitigate such risks.There are three key novelties in this paper:1. Setting an example for the Smart Home enterprise by Diversification Strategy, based on "common platform of product and technical competency".2. Further cementing the status of being the industry standard bearer by working closely with the education sector, expanding cross sector co-operation.3. "Smart community" is a destined to happen in the Internet age. This paper discusses how IU builds a "Connected solution provider" using a Diversification Strategy approach to develop, integrate, and capture residential, commercial, segments. Not only is the paper instructive for IU, but also creating value for society at large.