The Research on Management of Private Enterprise in Diversification Strategy Environment

Diversification strategy takes a more important part in business management, with the deepening development of the market economy, most international companies began to use the diversified strategy. According to relevant statistics, more than 94% of the world 500 enterprises implemented diversified business strategy. China's most enterprises from the late 1980s began diversification strategy. But for the private enterprises, the application of diversification strategy to private enterprises can not only promote the rational use of corporate capital flows and thus improve the economic efficiency of private enterprise, but also take advantage of private enterprises to improve the core competitiveness of private enterprises. However, private enterprise diversification strategy has successful stories with also some cases of failure, and not all private enterprises are suitable for the implementation of private enterprise diversification strategy.