Study On The Effectiveness Of The Implementation Of BLOOMAGE BIOTECH’s Diversification Strategy

Since the 1980s,a part of China’s enterprises has carried out the layout of diversification strategy and harvested many successful examples,when China was in the initial stage of the economic boom of reform and opening up,the degree and level of economic opening was low,and there was also a lack of external competition from overseas products.As the pace of reform and opening up increased,China gradually joined the development system of the world economy,and its share in the trend of economic globalization deepened,some problems in diversification were gradually exposed.In this process,some enterprises with good performance and development prospect,such as Giant Group,Sun God,Wanjia,Fei Long,etc.,have fallen into development difficulties and failed because they blindly chose to diversify their business layout.BLOOMAGE BIOTECH is also a company that has chosen to diversify its strategy.It has continuously expanded its hyaluronic acid industry chain and deeply integrated with a wide range of downstream application scenarios,and now has three major businesses: raw materials,medical terminals and functional skin care products,successfully strengthening the market perception of BLOOMAGE BIOTECH’s hyaluronic acid.With few successful cases of diversification,why did BLOOMAGE BIOTECH choose to diversify,how effective was its diversification strategy,what are the reasons for its success,and what lessons can other companies learn from its journey?This paper takes BLOOMAGE BIOTECH as a case study.Firstly,it compares domestic and international research literature on the connotation of diversification strategy,the motivation of diversification strategy selection,and the effect of diversification strategy,and explains the theoretical basis of carrying out diversification strategy;at the same time,it introduces the development,operation,and diversification business characteristics of BLOOMAGE BIOTECH;secondly,it analyzes the internal and external favorable conditions for BLOOMAGE BIOTECH to carry out diversification;and concludes that the motivation of its diversification strategy is to The second analysis focuses on the operation and financial situation of BLOOMAGE BIOTECH after the implementation of the diversification strategy,and finds that the implementation of the diversification strategy can achieve the effects of improving financial performance,controlling operational risks,promoting R&D and investment,and increasing market share and corporate value;and then summarizes that its success is due to the core advantages of raw materials,sufficient After the above in-depth study,we can conclude that the effect of the diversification strategy implemented by BLOOMAGE BIOTECH is significant;its time to enter new markets is ripe,the motivation of diversification strategy is reasonable,and the success of diversification strategy is the result of the joint action of multiple factors;based on its experience of diversification strategy,we can provide a more detailed analysis of the experience of BLOOMAGE BIOTECH.Based on the experience of its diversification strategy,we can offer inspirations to companies that want to develop new businesses and expand their scale:extend the tentacles of their advantages around their core competencies;enter the market at the right time in response to consumer trends;adhere to R&D innovation to achieve a virtuous cycle;and review the life cycle to keep internal driving force.The study on the diversification strategy of BLOOMAGE BIOTECH can not only enrich the academic theory related to the implementation effect of diversification strategy;but also provide data and strategy support and help to the actual decision of the case company and promote its healthy and sustainable development;and also provide case reference to other companies.