Research on Diversification Strategy of Manufacturing Enterprises Based on Optimized GE Matrix - Taking Gree as an Example

DOI: https://doi.org/10.62517/jmsd.202412430

Author(s)

Men Yuying1, Gao Linna2

Affiliation(s)

1Institute of Science and Technology Information of Hubei, Wuhan, China； 2Gree Electric Appliances, LNC. Of Zhuhai , Zhuhai, China

Abstract

In the current complex and challenging economic environment, both domestically and internationally, China's economy is undergoing a period of transformation with increased downward pressure. Additionally, the rise of external trade protectionism and escalating China-US trade tensions further complicate the situation. Against this backdrop, the manufacturing sector in China is confronted with challenges such as slowed growth and intensified market competition. For manufacturing enterprises, adopting a diversified development strategy can mitigate market risks, explore new opportunities, and enhance competitiveness. However, the criteria for selecting diversified business targets are not clearly defined. This paper takes Gree as a case study, introducing the Industrial Competitive Cycle Model into the GE matrix evaluation indicators. It attempts to construct a comprehensive evaluation system suitable for the diversified development of manufacturing enterprises. Furthermore, building upon the analysis results of the GE matrix, and integrating the three-level theory of McKinsey's business, the paper optimizes the business development strategy within the GE matrix. This optimization aims to assist manufacturing enterprises in selecting appropriate diversified business development targets, optimizing resource allocation, and enhancing overall competitiveness.

Keywords

GE Matrix; Corporate Strategic Planning; Diversification Strategy; Corporate Diversification; Manufacturing Enterprises

References

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