Dalian RiQian Motor: Specialization or Diversification?

內容大綱
RiQian Motor was a Chinese company focusing on the development of wheel motors for mining machinery. Its long-term track record with providing high-quality products and service had won the trust and favour of its many clients. In 2016, the mining machinery industry began to focus on the production of electric vehicles. RiQian Motor invested in this new direction, but as of 2018, it was suffering losses in this new area. RiQian Motor was faced with a difficult choice: Should it discontinue its efforts at diversification and go back to the specialized strategy it excelled at? Or should it take a risk and continue the diversification strategy?
學習目標
This case is suitable for discussing business strategy in a strategic management course at the undergraduate or graduate level. It can be used to illustrate and discuss how to choose specialization strategy or diversification strategy according to the environmental analysis of an enterprise.
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