Research On The Impact Of Diversification Strategy On Corporate Performance Under Dual Equity Structur

According to the needs of the social and economic market and the improvement of people’s living standards,the dual-class share structure came into being,and the diversification strategy flourished.The strategic positioning of the enterprise will affect the performance of the enterprise,and the dual-class share structure will affect the long-term development of the enterprise,so under the influence of the dual-class share structure,how the diversification strategy will affect the performance of the enterprise is a topic worth studying.Many scholars at home and abroad have carried out in-depth research on the dual-class share structure and the diversification development strategy,which provides a solid theoretical basis for the research of the two,but few scholars have studied the impact of the diversification strategy on enterprise performance under the dual-class share structure.Therefore,studying Xiaomi’s dual-class share structure and diversification strategy can further expand and improve relevant theoretical research,and enrich the research on diversification strategy and dual-class share structure.As the first enterprise in China to list in Hong Kong using a dual-class share structure,Xiaomi Group has now become a large "volume" enterprise among science and technology innovation companies,and it is of certain significance to study it.This paper reviews and sorts out the literature on dual-class share structure,diversification strategy and corporate performance.Starting from the relevant theories of commissions,the influence mechanism of diversification strategy on enterprise performance under dual-class share structure is analyzed.Taking Xiaomi Group as a research case,relevant data were collected,and the impact of Xiaomi Group’s diversification strategy on corporate performance was analyzed by both financial and non-financial evaluation methods.Through the analysis,the main conclusion is that the dual equity structure of Xiaomi Group has a positive impact on the implementation of its diversification strategy,which has greatly improved Xiaomi Group’s corporate performance.This effect is mainly reflected in the following aspects:(1)For Xiaomi Group,the dual equity structure has the effect of promoting its business diversification and thereby increasing corporate income,which effectively enhances corporate value and thus improves corporate performance;(2)For Xiaomi Group,a dual equity structure can effectively promote its regional diversification strategy,thereby occupying market share more efficiently;(3)For Xiaomi Group,a dual equity structure can effectively promote its diversified business strategy,increasing customer traffic while enhancing the company’s brand image;(4)For Xiaomi Group,a dual equity structure can better promote the implementation of its product diversification strategy and to some extent improve the efficiency of resource allocation of the enterprise.Through the study of the situation of Xiaomi Group,it is concluded that it has reference value for other enterprises of the same type.Possible research contributions in this paper: The research in this paper enriches the research on the impact of diversification strategies under dual-class share structures on corporate performance.At the same time,to a certain extent,the internal law of the impact of diversification strategy on enterprise performance under dual-class shareholding structure is revealed,which is helpful to better understand the mechanism of the shareholding structure in strategic management and other aspects.This is not only a further deepening of existing relevant research,but also has a certain enlightenment effect on management practice.