Research On Financial Crisis Management And Control Of LeTV Under The Background Of Diversification Strategy

With the development of the world economy,many companies are now adopting diversified competitive strategies,which stems from their unique advantages in risk diversification,obtaining more funds,finding new growth points,using variable income capital and obtaining funds or other financial benefits.But at the same time,diversification strategy is also a double-edged sword,which not only contains huge energy,but also hides huge risks.Le TV,as a template for the diversification strategy of enterprises in recent years,has gone from peak to bankruptcy in just 16 years from its initial establishment in 2004 to its fall in 2020.The reason can be said that diversification strategy has played an important role that can not be ignored.Therefore,taking LeTV as an example,this paper reviews the whole process of its diversified strategic expansion,combs the specific performance of Le TV's financial crisis through various indicators of enterprise financial analysis,and identifies its financial crisis by using the safety degree of capital chain and Z-value test,and finds out the main reasons leading to Le TV's bankruptcy crisis.Then,it puts forward some financial crisis prevention strategies for industries or other enterprises that implement diversification strategy.For example,appropriate diversification,scientific and sound financing,better debt management,sound financial early warning system and strengthening control over online video industry.Through in-depth understanding of Le TV's financial crisis,we hope to provide reference for enterprises in the same industry or other Companies which implement diversification strategy to cope with the financial crisis.