Research On Horizontal Integration Strategy Of JL Company

JL Company is a household appliance accessory enterprise specializing in the development and production of mechanical capillary thermostats.Since its establishment in 1998,it has made good achievements in the capillary thermostat industry.With the development of the Internet of Things and artificial intelligence technology,home appliance products have begun to transform to intelligence.At the same time,affected by production costs,business environment and other factors,JL is facing greater development pressure.The business strategy of single production of capillary thermostats is bound to be adjusted.Therefore,through the combination of relevant theories and practices,this thesis uses the methods and tools of strategic management to diagnose the favorable and unfavorable factors in the diversified development strategy environment of JL,formulate the horizontal integration strategy suitable for JL,and propose the implementation plan of the strategy,so as to improve the core competitiveness of the enterprise and enhance the profitability of the enterprise.Firstly,it combs and evaluates relevant domestic and foreign research literature on diversification strategy,focusing on the theory of horizontal integration strategy.Secondly,analyze the macro and micro environment of JL,study the opportunities and challenges faced by the enterprise development,and determine the problems existing in the development of JL.Finally,we should formulate the horizontal integration strategy of JL,including the target system,organizational framework,strategy implementation steps,and establish the safeguard measures and risk prevention.Through the research,the following conclusions are drawn: JL takes capillary thermostat products as the core and actively produces other related products;The company has implemented the horizontal integration strategy for five years.By comparing the performance data before and after the implementation of the strategy,it is determined that the strategy can give play to JL’s own advantages,reduce the business risk of the company,and realize the key steps of collaborative development.By implementing the horizontal integration strategy,JL can realize the transformation of the enterprise from a single to a diversified strategy,and effectively help the enterprise to become bigger and stronger.