A Conceptual Model for Diversification Strategies Choice

Abstract

The diversification of construction companies is relevant due to the significant development of the construction industry in the last decade in Ukraine, China, and the world. In the context of globalization, market consolidation, economic instability, companies must seek new ways to strengthen market position, reduce business risks, increase profits. The formation and implementation of the strategy of enterprise diversification allows to solve these problems partially. The difficult task for the company is to choose a diversification strategy, which would give the maximum economic effect in the long run. Multi-objective optimization can be used to select the optimal diversification strategy. The article describes some well-known decision-making methods for the problem of choosing diversification strategies. The article also describes the problem statement, the scheme of its solution, and the mathematical model of decision-making on the choice of a rational diversification strategy for construction companies. The article defines the general requirements for the development of information technology strategy selection. Problems that need to be addressed in future research have also been identified.