(Anti-theft, post in the evening.) Summary: With the advancent of technology and the coverage model of intelligent networks, the rise of the ga industry in recent years is evident to the populace. The thods of ga dissemination are no longer confined to rigid promotional modes, and the influence of gas has gradually expanded to all aspects of life. Correspondingly, ga companies need to continuously integrate resources, innovate, and upgrade to enhance performance with the rapid developnt of the tis. The diversification strategy aptly ets the planning needs and developnt goals within the ga industry. Under the backdrop of economic globalization, diversification strategy, as a preferred mode of business developnt, is also applicable to ga companies. This article explains the impact of diversification strategy on the performance of ga companies using Sanqi Mutual Entertainnt Company as an example.
Keywords: Diversification strategy; Ga company; Performance; Impact; Sanqi Mutual Entertainnt Company
Diversification strategy is a market strategic ans that enterprises adopt during their operations to gain more hold over new markets and expand into new markets. It is also a strategic plan used by enterprises to avoid risks encountered in the process of operating a single business, with targeted and well-prepared entry into new fields of business. Applying the diversification strategy practically in ga companies can effectively improve company performance, bringing about a transformation from quantitative to qualitative growth for the developnt of ga companies.
1. Macro 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 culture shows a great recovery trend. On April 30, 2021, according to relevant data released by the National Bureau of Statistics, the developnt of the national cultural industry has largely recovered to pre-pandemic levels [1]. This is very favorable news for the ga industry, which accounts for a significant portion of the cultural industry. Although the arrival of the pandemic did not greatly affect the ga industry, the inability to conduct offline activities always impacts the performance of ga companies. With the warming up of the cultural industry, this ans, for most ga companies, that the great developnt and prosperity of the cultural industry can promote the continuous developnt path for more ga companies [2].
From the outbreak of the pandemic last year to the stable period now, the state has issued relevant policies in multiple aspects such as finance, systems, and finance to support the developnt of the cultural industry. Although the pandemic blocked people's travel steps, it could not control the spread speed of the online network. More and more new dia have erged, driving the developnt of the cultural industry during the pandemic prevention. However, since many enterprises want to squeeze into the online market, the competition environnt among cultural industries is very fierce. Many traditional offline enterprises have been eliminated by society under the influence of the pandemic, but during these short two years, many successful transford cultural industries have erged. These enterprises mostly rely on the diversification strategy to accelerate transformation and upgrading, reaping substantial gains during the pandemic prevention period when residents' consumption levels are significantly increased, obtaining more diversified developnt modes and inco channels. For instance, the transformation made by Sanqi Mutual Entertainnt Company during the pandemic prevention period is worth emulating by most ga companies [3].
2. Brief analysis and classification of diversification strategy
(I) Brief analysis of diversification strategy
Diversification strategy was proposed by the pioneer of strategic managent, Igor Ansoff. In his work "What is Corporate Strategy," he ntioned the classification of diversification strategy. This world-impacting strategic model is involved in managent policies of multiple countries, so much so that today every large and small enterprise is seeking a place according to the developnt model of diversification strategy [4].
(II) Classification of diversification strategy and its aning
Diversification strategy is categorized into four types: horizontal diversification, vertical integration, concentric diversification, and overall diversification. Each of the four different modes derived from diversification strategy has different anings. Horizontal diversification refers to enterprises using the original conditions provided by the market to produce new products that et new user needs, thus driving market consumption. Vertical integration refers to enterprises developing vertically according to their own developnt situations, penetrating into other market fields with the product industry chain to seek new consur objects. Concentric diversification emphasizes innovation of the existing technology, requiring the production of new products within the existing production scope, with the entire process realized through the transformation of existing technology. Overall diversification focuses more on expanding the scope of operations, requiring enterprises to connect raw materials, technology, and market factors related to their own products to expand the scope of operations [5].
3. 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 the performance of ga companies is divided into two parts: changes in the operational mode and the transfer of strategic planning. From the effects gradually generated by changes in these two parts, the performance of the company is improved. The impacts brought by the diversification strategy are multifaceted. This paper will focus on Sanqi Mutual Entertainnt Ga Company to analyze and study the impact of diversification strategy on the performance of ga companies [6].
(1) Changes in operational mode
At present, the main operational scope of Sanqi Mutual Entertainnt Ga Company is very extensive, which is also due to the advantages brought by diversification strategy. The company's business not only involves the operation of interactive entertainnt but also encompasses the developnt and publication of mobile gas and web gas under the umbrella of Sanqi Mutual Entertainnt Ga Company. Moreover, in recent years' developnt, keeping pace with technological advancents, it has continuously innovated, broadening the market to include film and animation layouts in the second dinsion, and also shapes its market cultural industry chain in various entertainnt businesses such as music, VR technology, and all kinds of live streaming.
Sanqi Mutual Entertainnt Ga Company was established in 1995, but the early developnt path was not smooth. The predecessor of Sanqi Mutual Entertainnt Ga Company was a small enterprise. Initially, Sanqi Mutual Entertainnt's industry chain did not involve the operation of ga and other entertainnt industries, always with the risk of being annexed by the market. However, relying on the steady developnt of a single industry, Sanqi Mutual Entertainnt Company went public in 2011. Yet with subsequent poor operations and market contraction, Sanqi Mutual Entertainnt ultimately did not escape the fate of being acquired.
In 2014, Wuhu Shunrong Auto Parts Co., Ltd. acquired 60% equity of Shanghai Sanqi Mutual Entertainnt Technology Co., Ltd. Although it was nominally acquired, for Sanqi Mutual Entertainnt, this was an opportunity worth seizing for developnt. The two companies completed asset restructuring of various industries under multi-party collaboration. It is worth ntioning that the exhibition strategy consistently operated by Sanqi Mutual Entertainnt has started to shine at this ti, transforming from a single modern cultural creative company before acquisition to a dual main business listed company of advanced production manufacturing and modern cultural creativity running in parallel. Correspondingly, the company's operational strategy of Sanqi Mutual Entertainnt is also changing, with the business scope covered by the original cultural creative industry.
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