(Anti-theft chapter, sa number of words, will release in the evening~) Abstract: With the advancent of technology and the coverage model of intelligent networks, the rise of the gaming industry in recent years is evident to the public. The thods of ga promotion are no longer confined to rigid advertisent models, and the influence of gas has gradually expanded to all aspects of life. Correspondingly, ga companies need to continually integrate resources, innovate, and improve performance in line with the rapid developnt of the tis. Diversification strategy aptly ets the planning needs and developnt goals within the gaming industry. In the context of economic globalization, diversification strategy, as a preferred mode of enterprise developnt, is also applicable to ga companies. This article uses Sanqi Mutual Entertainnt Company as an example to explain the impact of diversification strategy on the performance of ga companies.
Keywords: Diversification strategy; Ga company; Performance; Impact; Sanqi Mutual Entertainnt Company; Diversification strategy is a market strategic asure implented by enterprises during their operations to capture new markets and develop new ones. It is also a strategic plan used by enterprises to avoid risks encountered in running a single business, aid at strategically entering new business fields with targeted preparations. Applying a diversification strategy to ga companies can effectively improve company performance, bringing the company's developnt from quantitative change to qualitative change.
1. The macroscopic background of diversification strategy
Entering 2021, under the effective control of the pandemic by the state, people's lives have returned to normal, and the economic and cultural landscape is showing a promising trend of recovery. On April 30, 2021, according to relevant data released by the National Bureau of Statistics, the developnt of the national cultural industry has basically recovered to its level before the pandemic. For the gaming industry, which holds a significant proportion within the cultural industry, this is very favorable news. Although the arrival of the pandemic did not significantly affect the gaming industry, the inability to conduct offline activities continued to impact the performance of ga companies. The revival of the cultural industry implies that this large-scale developnt and prosperity can promote more ga companies to embark on a path of sustainable developnt.
From the outbreak of last year's pandemic to the current stabilization, the state announced policies supporting the developnt of the cultural industry from multiple aspects such as finance, systems, and finance. While the pandemic restricted people's travel, it could not control the speed of online network dissemination. The ergence of more and more new dia stimulated the developnt of the cultural industry during the pandemic prevention period. However, as various enterprises sought to enter the online market, the competitive environnt within the cultural industry beca fierce. Many traditional offline enterprises could not withstand the pandemic's impact and were eliminated from society, but in these short two years, many successful transformations occurred within the cultural industry. These enterprises largely relied on a diversification strategy model to accelerate their transformation and upgrade, achieving considerable success in a period when residents' consumption levels significantly increased during pandemic prevention, gaining more diverse developnt models and funding channels. For example, the transformation undertaken by Sanqi Mutual Entertainnt Company during the pandemic prevention period is worth learning from by most ga companies.
2. A simple analysis and classification of diversification strategy
(1) Simple analysis of diversification strategy
Diversification strategy was proposed by the father of strategic managent, Igor Ansoff. In his book, "Corporate Strategy," he ntioned the classification of diversification strategy. This world-influencing strategic model has been involved in the managent policies of multiple countries, leading every large and small enterprise to seek a place according to the developnt model of diversification strategy.
(2) Classification and aning of diversification strategy
Diversification strategy is divided into four types: horizontal diversification, vertical integration, concentric diversification, and conglorate diversification. The four different modes derived from the diversification strategy also have distinct anings. Horizontal diversification refers to the production of new products that et new user needs using original market conditions, thereby driving market consumption. Vertical integration involves the enterprise deriving vertically based on its own developnt situation, penetrating other market fields with the product supply chain to seek new consur targets. Concentric diversification focuses more on the innovation of existing technologies and requires producing new products within the existing production range, achieving the entire process through the transformation of existing technologies. Conglorate diversification focuses more on the expansion of operating range changes, requiring enterprises to connect raw materials, technologies, and market factors related to their own products to expand the operating range.
3. The impact of diversification strategy on the performance of ga companies
It can be said that in the operations of all ga companies, the impact of diversification strategy on company performance is divided into two parts: changes in the operation model and shifts in strategic planning. The effects gradually arise from these two changes, promoting the improvent of company performance. The impact of diversification strategy is multifaceted. This thesis will take Sanqi Mutual Entertainnt Ga Company as an example to analyze and study the impact of diversification strategy on the performance of ga companies.
(1) Changes in the operation model
Currently, the main operation range of Sanqi Mutual Entertainnt Ga Company is very extensive, which is an advantage brought by the diversification strategy. The company's business not only involves the operation of interactive entertainnt but also encompasses the developnt and distribution of mobile gas and web gas under Sanqi Mutual Entertainnt Ga Company. In recent years, the company has continuously innovated by keeping pace with technological advancents, expanding the market to include film and animation layouts. It also establishes a market cultural industry chain belonging to Sanqi Mutual Entertainnt Ga Company in music and VR technology and various general entertainnt businesses like live broadcasting.
Founded in 1995, Sanqi Mutual Entertainnt Ga Company did not have a smooth developnt path in its early stages. The predecessor of Sanqi Mutual Entertainnt Ga Company was a small enterprise, and initially, its industrial chain did not involve the operation of gas and other entertainnt industries, constantly facing the risk of market annexation. However, relying on the steady developnt of a single industry, Sanqi Mutual Entertainnt Company went public in 2011, but due to poor later-stage operations and market contraction, Sanqi Mutual Entertainnt still eventually succumbed to acquisition.
In 2014, Wuhu Shunrong Auto Parts Co., Ltd. acquired 60% of Shanghai Sanqi Mutual Entertainnt Technology Co., Ltd. shares. Although it was nominally acquired, for Sanqi Mutual Entertainnt Company, it was a developnt opportunity worth seizing. The two companies completed asset restructuring of various industries through multi-faceted collaboration. Notably, the cultural and creative industry operated by Sanqi Mutual Entertainnt was not covered by other industries. Under this developnt model, the diversification developnt strategy has begun to show its edge. Sanqi Mutual Entertainnt Company transford from a single modern cultural creativity company before the acquisition to the current advanced manufacturing and modern cultural creativity.
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