| With the integration and internationalization of the world economy,many large enterprises in China have realized the expansion and transformation from the monomer mode to the group mode.The current operation mode can no longer play a positive role in the development of enterprises,which needs to be changed urgently.Therefore,enterprise groups gradually turn their focus to the implementation of diversified operation strategy.On the one hand,it is to disperse business risks internally,and on the other hand,it is to win more cooperation opportunities for enterprises externally,and finally improve the competitiveness of enterprises to achieve long-term development.Of course,diversification brings benefits to the enterprise,but also may lead to a series of thought-provoking problems.Successful diversification can enhance the connection between various sub-businesses,achieve common development,obtain synergies between operation and finance,and thus enhance the overall value of the enterprise.However,the failed diversified operation will not form synergies among various sub-businesses,but also disperse the limited internal resources of the enterprise due to its involvement in too many fields,reduce the efficiency of the use of resources,and cause vicious competition within the enterprise,thus damaging the value of the company.Based on the above needs,it has become a top priority to study the reasons for the failure of enterprise diversification strategy.Therefore,this paper selects Le TV Network,which failed in diversified management,as the research object,and analyzes the reasons for the failure of its diversified management by analyzing the process of diversified management and the changes in its financial capacity.As the forerunner of diversified business development in China,Le TV has never stopped in the process of diversified expansion,even though diversified operation is faced with many difficulties and various risks and uncertainties.Le TV used to be at the forefront of the video industry and was the first company in the same field to be listed successfully.However,its diversified operation failed,which aroused widespread concern in the society.Le networks diversification failure has strong timeliness and practical significance,therefore,this article selects diversified expansion failed le networks as a case study,analysis the failure of its diversity on the specific reason,provides the reference for diversified enterprise,on the premise of absorb its successful experience,abandon its failure mode and take notice.This study firstly summarizes and sorts out the literature related to diversification,financial capability and the relationship between enterprise diversification and performance to form the framework of case analysis.Secondly,the development course of Letv Network from rise to glory and then to decline is introduced in detail.Thirdly,through the analysis of Le TV network diversified management and its financial ability to explore the reasons for its failure.Le TV did not fully and comprehensively evaluate itself,did not grasp its own advantages and disadvantages,and its diversified operation decision was divorced from the actual operation ability of the enterprise,and its financial ability was disconnected from the rapid diversification expansion.Le TV’s diversified operation ended in failure.Finally,based on diversified miniaturization: to explore the cause of failure,put forward the enterprise in the process of diversification should complement each other,constantly improve their core competitiveness on the premise of expanding areas associated with their own core competitiveness,in the areas of good at as a breakthrough for the development of diversified,slowly on expanding our scope of business diversification,only in this way,In order to achieve steady and rapid growth of enterprises. |
