| For over 40 years since the reform and opening-up,China’s economy has maintained rapid growth,ranking second globally and becoming a significant engine for global economic growth.In recent years,as the country’s economic development has entered a new stage,the social environment has also undergone profound changes.Suning.com has complied with the trend of the times and implemented a diversified strategy in various relevant and unrelated fields to expand and improve its business portfolio.However,diversification is not a foolproof strategy,and improper selection or implementation can have adverse effects on a company.The purpose of this study is to analyze and evaluate the impact of Suning.com’s implementation of a diversification strategy on its business performance,to dissect whether Suning.com has achieved its objectives and intentions in implementing diversification,and finally,to provide reference and inspiration for other companies.This paper employs literature research,case analysis,balanced scorecard,and entropy methods to analyze the impact of Suning’s diversified business strategy on its performance,guided by the remaining resource theory,market power theory,and synergy theory.Firstly,the reasons for Suning’s implementation of diversified business strategy are analyzed from external and internal dimensions.External factors are analyzed from the perspectives of political,economic,social,and technological factors,while internal factors are analyzed using the remaining resource theory,market power theory,and synergy theory.Secondly,the balanced scorecard is introduced to analyze and evaluate the financial and non-financial performance indicators of Suning after implementing diversified business strategy.It is found that Suning’s performance has a trend of first rising and then falling after implementing diversified business strategy.In the long run,this strategy has had a negative impact on the company’s performance.In terms of financial performance,the implementation of diversified business strategy has led to a decrease in the company’s profitability,debt-paying ability,operating ability,development ability,and cash flow status.In terms of non-financial performance,there is a slight improvement in the customer dimension and social responsibility dimension,but there is a significant decline in the internal process dimension and learning and growth dimension.Finally,the paper further explores the reasons for the negative impact and proposes corresponding optimization strategies,including cautiously implementing diversified business strategy,comprehensively optimizing the capital structure,and actively enhancing core competitiveness. |
