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Construction and Application of Internet Enterprises’ Diversification Strategic Risk Model Taking LeTV as an Example

In: INTERNET FINANCE AND DIGITAL ECONOMY Advances in Digital Economy and Data Analysis TechnologyThe 2nd International Conference on Internet Finance and Digital Economy, Kuala Lumpur, Malaysia, 19 – 21 August 2022

Author

Listed:
  • Wenxuan Zhang

Abstract

Diversification strategy has always been the focus of enterprises. Many enterprises have changed their models and adopted diversified management methods to improve their market competitiveness. However, not all companies can bring profit growth. For companies, a diversification strategy is like a double-edged sword. If it is not used properly, it will also lead the company into a financial crisis. This paper takes LeTV Group as the research object to discuss the financial risks and consequences of corporate diversification strategies and uses LeTV’s financial data to analyze the economic consequences of LeTV’s diversification strategy financial risks. The study finds that due to the mismatch of capital allocation, limited profitability, and insufficient funds as support, the financial risks of LeTV have increased. In response to a series of problems, this paper proposes measures to solve the financial risk control of LeTV’s diversification strategy. It is realistic and necessary to study the diversification financial risks and consequences of LeTV Group, hoping to provide a reference for the diversification strategy layout of other companies.

Suggested Citation

  • Wenxuan Zhang, 2023. "Construction and Application of Internet Enterprises’ Diversification Strategic Risk Model Taking LeTV as an Example," World Scientific Book Chapters, in: Faruk Balli (ed.), INTERNET FINANCE AND DIGITAL ECONOMY Advances in Digital Economy and Data Analysis TechnologyThe 2nd International Conference on Internet Finance and , chapter 59, pages 801-812, World Scientific Publishing Co. Pte. Ltd..
    • Handle: RePEc:wsi:wschap:9789811267505_0059
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    More about this item

    Keywords

    Internet Economy; Online Finance; Financial Engineering; Big Data; Blockchain; Supply Chain; E-commerce;
    All these keywords.

    JEL classification:

    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • G2 - Financial Economics - - Financial Institutions and Services

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