Mestasang Medical Cosmetology Group’s Diversification Strategy Research

With the improvement of per capita income and quality of life,people have been greatly satisfied with their basic needs,namely food,clothing,shelter and means of traveling,and have got new pursuit of quality of life.For example,they want to be more beautiful,improve their image and resist aging,which boosts the development of the medical cosmetology industry.Many problems have appeared with the rapid development and the industry is also facing various threats such as lack of standardization,worse rat race,excessively high cost of physicians,medical safety and recurrence of the pandemic.All of these dramatically affect the lifetime of medical cosmetology organizations and their long-term sustainable development.Established in 2010,Mestasang Medical Beauty Group now operates and manages plenty of medical cosmetology hospitals.As a modern medical beauty group,its business covers Shandong province and even the whole of China and owns more than 150 cooperative institutions respectively in Beijing,Shanghai and within Shandong province.Nevertheless,the Group is also faced with some pressure and threats,so it needs to develop strategies in accordance with its practice to cope with the opportunities and challenges in the new context.On the basis of the research results of strategic management of enterprise,diversification strategy theory,horizontal merger&acquisition strategy as well as the theory of strategic alliances,the thesis elaborates the status quo of the Group and its environment and then draws the following conclusions.First,the thesis analyzed the external macro environment faced by the Mestasang Medical Beauty Group with the PEST Model.Second,the thesis presented the environment of the industry to which the Group belongs with the Michael Porter’s Five Forces Model.Third,the thesis explored the internal resources of the Group according to its current situation of development and analyzed its abilities.Fourth,the thesis analyzed and evaluated its internal and external influencing factors with the EFE Matrix and IFE Matrix.Fifth,the thesis eventually selected and established the development strategy for the Group and put forward concrete supporting measures for implementation based on SWOT analysis and combination of the Group’s mission,vision,overall goals as well as sub-goals.Based on the study and analysis,Mestasang Medical Beauty Group chose diversified development and formulated the diversified development strategy of "one body with two wings"(hospital management+medical education+management consultancy).In the meanwhile,the Group also developed specific measures such as optimizing the organizational structure so that the organization matches the strategy.Besides,the Group chose to optimize its managerial hierarchy and improve its governance mechanism to lower its agent costs and solve the problem of conflicting interests.In addition,the Group decided to increase the management efficiency by more standardized management and highlighted the cultural construction to enable the Group to develop in the long term.At last,the Group added some safeguard measures like reinforcing organizational guarantee,supervision mechanism,capital operation,standardized internal management and performance assessment,etc.so as to make sure that the diversified development strategy of "one body with two wings" can be well implemented.