A Comparative Study Of Financial Performance Under The Adjustment Of Gree Electric's Diversified Development Strategy

The progress of science and technology and the rapid growth of economy have profoundly determined the development direction of enterprises.Currently,due to the increasingly sharp industry competition,many enterprise are committed to capturing a bigger market for gaining more profit.In this context,diversification strategy is a significant way for enterprises to expand their own scale,grab market share and client,and obtain stable sources of income.However,there are also many disadvantages of the diversified development model.While occupying the market,the capital investment of enterprises may be dispersed,and there is a possibility that the core competitiveness of the enterprise will be damaged,which will cause greater losses.The case of this article is Gree Electric Appliances,which has been taking air conditioning products as the company's main commodity for many years.User demand and the iterative development of science and technology promote product innovation.On this basis,Gree Electric constantly improves the core competitiveness of air conditioning products.Through continuous analysis and comparison,this paper summarizes the relationship between enterprise diversification strategy adjustment and performance,and puts forward optimization measures to promote the follow-up development of the household appliances industry.Through the comparison and analysis of the performance before and after the diversification strategy adjustment of Gree Electric Appliances,this paper finds problems,explores the causes and makes suggestions for improvement,so as to provide some lessons for other enterprises that want to achieve their own development by diversified strategy adjustment.