Study On The Implementation Motivation And Effect Of TCL Technology Refocusing Strategy

In the 1970 s and 1980 s,the tide of anti-diversification gradually emerged in western countries,and many enterprises lost their value due to diversification,which caused scholars to reflect on diversification,so Refocusing began to attract the attention of enterprises.In recent years,China’s market environment is constantly changing,many enterprises have begun to re-examine their own business,strategic adjustment.This paper selects the implementation of TCL’s technology refocusing strategy as the research object.By studying the case company,it evaluates whether focusing on core business brings good benefits to the enterprise,and provides reference for other enterprises under excessive diversification.Firstly,this paper summarizes the research results of refocusing strategy at home and abroad,and conducts a case study based on core competition theory and resource allocation theory.In the case study part,the paper first introduces the basic situation of TCL technology,then analyzes the motivation of implementing the strategy of TCL technology refocusing,and then combs out the contraction of its non-core business and the expansion path of its core business.Then,it evaluates the implementation effect of refocusing strategy from the aspects of operation benefit,management benefit,financial risk,enterprise growth and enterprise value.Finally,the conclusion is drawn that core business promotes the growth of enterprise performance in terms of business benefit;In terms of management benefits,the enterprise’s cost control ability leads the industry,and the operation efficiency is good.At the level of financial risk,the solvency of enterprises is relatively weak;In terms of growth,the enterprise has good growth ability,and its advantage in RESEARCH and development ability will further help the enterprise to grow.In terms of corporate value,the absolute value of enterprises has been greatly improved,and the relative value is gradually close to the industry leader.Through the research,it is found that the implementation of refocusing strategy has a significant effect on TCL technology.To some extent,this indicates that enterprises should define their core competitiveness and strengthen their main business,so as to promote the optimal allocation of enterprise resources.Focus on synergies between businesses and make long-term plans to promote the improvement of enterprise performance and value;Make strategic adjustment according to the change of external environment.