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?
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