New Century Diversified Roadmap: The Chinese Model of the GE Model

Author: Xing Xudong, Sang Hai
Publisher:
Publish Date: 2005-01-01
Features: Diversification or Specialization? This is a critical fork in the road that every growing enterprise must choose. Although Welch took the magic of diversification to its peak at GE, the diversification efforts of many Chinese enterprises have been fraught with challenges, leading some to exclaim: "Diversification doesn't take root in China." At this very moment, a hidden giant in diversification—the Xinhuanlian Group—has gradually caught people's attention. Although many may still be unfamiliar with the name Xinhuanlian, once you mention the brands under Xinhuanlian Group, such as Jinliufu, Shangri-La Zangmi, Tonghua Wine, Chery Automobile, Hualian Ceramics, Dongyue Chemical, and Xinhuanlian Real Estate, the unfamiliarity turns into recognition, even admiration. Xinhuanlian is a typical diversified enterprise, yet this giant with nearly 8 billion yuan in annual revenue has always maintained vigorous vitality. No wonder some scholars have pointed out that Xinhuanlian is a Chinese model of the GE model. As long as Xinhuanlian's success continues, claiming that the path of diversification is unworkable in China would face an insurmountable counterexample. This is a book that delves deeply into how the diversification model can be combined with Chinese practice. The authors will search for and restore the milestones left by Xinhuanlian at the crossroads of diversification, providing Chinese enterprises with a localized textbook on diversification.