Research of Disruptive Diversification Strategy and the Synergy Effect

Abstract:

This paper described the nature of disruptive diversification strategy which is based on the disruptive innovation and analyzed the difference between the two modes of diversification strategy. Then this paper revealed the misunderstanding of the traditional diversification strategy in the new market selection and product features design. Thirdly, this paper analyzed and compared the synergy effects of the two kinds of diversification strategy and described the use for disruptive diversification strategy to improve the synergy effects and the performance level of diversification strategy. The results show that compared to the traditional market-oriented diversification strategy, disruptive diversification strategy can be better achieved the synergy effect in different business units and improves the performance level of diversification business.

• Periodical: Applied Mechanics and Materials (Volumes 409-410)
• Pages: 1587-1590
• DOI: https://doi.org/10.4028/www.scientific.net/AMM.409-410.1587
• Online since: September 2013
• Authors: Qiang Yang, Yu Zhang
• Keywords: Disruptive Diversification Strategy, Disruptive Innovation, Synergy Effect

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