Case Study of Mechanism for Diversifying Hyosung Trading Company

In 2000s, Hyosung Groups currently holds the world 1st in tire cords, the world 2nd in spandex and the national 1st in heavy electric machine, and it is changing into ‘a global company’ through positive takeover (M&A) and construction of foreign production bases. Thus, it was judged that the success of Hyosung has a sufficient meaning for study subject from an aspect of mechanism theory. Accordingly, this study aims to discuss Hysung Trading Company’s strategy for diversification from an aspect of mechanism by subject, environment and resources. To accomplish this, Hyosung Corporation SER-M and Hyosung Corporation diversified practice were analyzed. 5 facors including future, national development, coefficient, technology and reliability are identified as Diversification mechanism of Hyosung Trading Company. As a result of analyzing the case of Hyosung’s diversification, it was confirmed that 3 types including (1) E>S>R, (2) E>R>S, (3) R>E>S were used. The common factor of those 3 types is that environment (E) comes before subject (S). That is, SER-M has a great implication in that it provides an important frame for analysis in deciding whether a company implements a diversification strategy or not.