Abstract: Diversification is an important strategy during the course of corporation development. This circle analysis in brief the characteristics of two typical corporations which include the "fox" type and the "hedgehog" type, clarifies that the core competence is the mostly support of the diversification, the corporations must have an appropriate position, the different corporations must have it's own way which based on it's own circumstances and can promote the development, the risk would increase if going the diversification way blindly. The correlative coefficient is an important data, corporation can develop it's own diversification type in three steps.