(1) Longitudinal extension mode. No money. That is, the business elements of an enterprise are interdependent, advancing step by step, interlocking and extending closely. Its characteristics are that all business elements are interrelated and interdependent, and it is easy to operate and manage. It is a diversified business model widely adopted by small and medium-sized enterprises at present, involving similar or overlapping industries, mostly in service industry or manufacturing industry directly facing the daily consumer market. As far as business content is concerned, it can be divided into two categories: service extension and product extension.
Service extension refers to the diversification of enterprises engaged in service industry according to the relevance of service content, such as sea, land and air transportation; Public rail combined transport; One-stop services such as food, clothing, housing and transportation. Product extension refers to the diversification of enterprises engaged in product manufacturing according to the correlation between product consumption and use, such as the extension of production equipment and production consumables; The production and use of consumer goods have been expanded.
There are two main ways to realize the vertical extension strategic model: self-help or joint venture cooperation. Self-supporting Jackie Chan needs a lot of extra investment, but it is relatively stable and reliable in operation; Joint ventures have less investment, but poor stability and are easily interfered by competitors.
(2) Horizontal expansion mode. In other words, the fields or industries involved in the business elements of an enterprise are irrelevant and have no internal connection. Diversified business model is characterized by cross-industry (field), poor business relevance and complex management. Most of them exist in large group enterprises and international multinational companies. For example, Matsushita of Japan acquired Hollywood studios in the United States and entered the cultural and entertainment industry from the electronics industry. Another example is China Shougang's own bank, which penetrated into the financial services industry from the industrial field.