Study On The Implementation Path Of Globalization And Diversification Strategy Of Gree Electric Appliances

Since the 21 st century,after a high degree of competition and opening up and fierce survival of the fittest,China’s home appliance manufacturing industry has made rapid progress and created a world-renowned home appliance national brand——Gree.During decades of development,Gree Electric Appliances has been sticking to the globalization and diversification of strategic objectives,in order to implement the strategy of globalization and diversification,continued to expand in the market,opened its doors to the world and lead the market in home appliances market at home and abroad,at the meanwhile Gree continuously forged ahead in their business,consolidated the advantaged business on the basis of looking for new sources of growth,and transformed into a diversified industrial group.Based on the strategic vision of globalization and diversification of Gree Electric Appliances from 2016 to 2019,and supported by strategic management theory,this paper deeply analyzes the measures taken by Gree in external development,internal development and strategic alliance in order to build a "diversified global industrial group based on science and technology".Besides,taking Midea Group as the object of comparison,this paper compares the implementation path of globalization and diversification strategy of Midea and Gree,and analyzes the effect of strategy implementation of Midea and Gree with financial indicators and non-financial indicators.This paper argues that: Gree Electric Appliances mainly through internal development,which includes independent research and development,production and construction,and set up a new subsidiary company,to implement the strategy of globalization and diversity: on the strategy of diversifying,Gree,step by step,accumulates the technology and resources in the field of air conditioning through independent operation,and is trying to develop business in household appliances,intelligent equipment,communication equipment and other fields to strengthen diversified layout.However,it is still based on air conditioning business,and diversified business has not yet been scaled up.In terms of globalization strategy,Gree mainly radiates from China to the world.Almost all its research and development,production and operation activities are concentrated in China.At present,about 70% of Gree’s revenue comes from China.However,through the comparison with Midea,this paper finds that in the strategy implementation,Gree has some problems,such as diversified and dispersed business,high risk of internal development and increasing pressure of fighting alone.Therefore,this paper puts forward the following suggestions to help Gree implement and realize the diversification and globalization strategy better,and also provide inspiration and reference for the strategy implementation of other enterprises.First of all,it is necessary to clarify the diversification direction and focus on 1-2 diversified businesses.Secondly,it would be better if Gree could grasp the introduced strategic resources well and work with Hillhouse Capital to achieve a more comprehensive diversification and deeper globalization.Finally,Gree should explore external cooperation opportunities to achieve strong alliance.