Author(s)

Luqi Wang

Corresponding Author

Luqi Wang

Abstract

Diversification is an important way for enterprises to expand the scale and realize the growth. In order to spread the enterprise risk, reduce the transaction cost, improve the economic efficiency and expand the emerging market, more and more enterprises have embarked on the road of diversification. However, in the process of the rapid expansion, enterprises may face more uncertainties and great risks. This paper analyzes the management risk, debt risk and exit risk faced by enterprises in the implementation of diversification strategy, and gives corresponding countermeasures and suggestions for the relevant researchers as a reference.

Keywords

Diversification Strategy, Multiple strategies, Risk prevention.