(Anti-theft, post in the evening.) Abstract: With the advancent of technology and the coverage model of intelligent networks, the rise of the ga industry in recent years has been evident to the public. The way gas are promoted is no longer confined to rigid publicity modes, and the influence of gas has gradually expanded to all aspects of life. Correspondingly, ga companies need to continuously integrate resources, innovate, and improve performance to keep up with the rapid developnt of the tis. Diversification strategy precisely caters to the planning needs and developnt goals within the ga industry. Against the backdrop of economic globalization, diversification strategy, as the 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 strategy ans that enterprises adopt during the operation process to occupy more new markets and explore new market potentials. It also helps companies to avoid the risks encountered during single business operations. This strategic planning involves targeted and prepared entry into new business fields. Applying diversification strategy practically to ga companies can effectively enhance company performance, bringing about a process from quantitative to qualitative changes in the developnt of ga companies.
1. The Macroeconomic Background of Diversification Strategy
Entering 2021, with the country's effective control over the pandemic, people's lives are back on track, and the economic culture is showing signs of revival. On April 30, 2021, according to the relevant data released by the National Bureau of Statistics, the developnt of the national cultural industry has basically returned to pre-pandemic levels [1]. This is very favorable news for the ga industry, which accounts for a large proportion of the cultural industry. Although the advent of the pandemic did not significantly impact the ga industry, the inability to hold offline activities continuously affects the performance of ga companies. The recovery of the cultural industry ans that new developnt and prosperity can promote more ga companies to embark on the path of sustainable developnt [2].
From the outbreak of the pandemic last year to the current stabilization, the state has introduced relevant policies to support the developnt of the cultural industry from multiple aspects, including finance, systems, and finance. Although the pandemic hindered people's travel, it couldn't control the spread speed of the online network. More and more new dia are erging, driving the developnt of the cultural industry during pandemic prevention and control. However, because every company wants to enter the online market, the competitive environnt within the cultural industry is quite intense. Many traditional offline enterprises could not withstand the pandemic's impact and were eliminated by society. But, within these short two years, many successfully transford cultural industries have erged, and most of these enterprises relied on diversification strategy models to accelerate transformation and upgrades. During the pandemic prevention period, with significant improvent in residents' consumption levels, these enterprises also reaped good results, obtaining more diverse developnt models and inco channels. For example, the transformation of Sanqi Mutual Entertainnt Company during the pandemic prevention period is worth learning for most ga companies [3].
2. Brief Analysis and Classification of Diversification Strategy
(1) Brief Analysis of Diversification Strategy
Diversification strategy was proposed by the father of strategic managent, Igor Ansoff. In his book "Corporate Strategy," he ntions the classification of diversification strategies. This world-influencing strategic model has been involved in many countries' managent guidelines and policies, leading to every enterprise seeking a foothold according to the diversification strategy developnt model today [4].
(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 modes derived from diversification strategy have different anings. Horizontal diversification refers to the enterprise's use of the original conditions provided by the market to produce new products that can et user needs, thereby driving market consumption. Vertical integration is an enterprise based on its developnt situation, vertically extending, using the product industry chain to penetrate other market fields to seek new consur targets. Concentric diversification focuses more on the innovation of existing technology, requiring production of new products within the original production range, achieving through the transformation of existing technology. Conglorate diversification emphasizes expanding the operating range, where enterprises need to connect relevant raw materials, technology, and market factors related to their products to expand the operating range [5].
3. The Impact of Diversification Strategy on Ga Company Performance
It can be said that in the operation process of all ga companies, the impact of diversification strategy on ga company performance is uniformly divided into two parts: the change of operating mode and the transfer of strategic planning. The reforms in these two parts gradually produce effects that drive company performance enhancent. The impact of diversification strategy is multi-faceted. This paper will use Sanqi Mutual Entertainnt Ga Company as an example to analyze and study the impact of diversification strategy on ga company performance [6].
(1) Change in Operating Mode
Currently, the main operational range of Sanqi Mutual Entertainnt Ga Company is quite extensive. This is also an advantage brought by the diversification strategy. The company's business not only involves interactive entertainnt operations but also covers the developnt and distribution of mobile and web gas under Sanqi Mutual Entertainnt Ga Company. Additionally, in recent years of developnt, closely following technological advancents, the company has continuously innovated, expanding the market layout to include film and animation, also shaping its market cultural industry chain in music, VR technology, and various live broadcast pan-entertainnt businesses.
Sanqi Mutual Entertainnt Ga Company was founded in 1995. However, the early developnt path was not smooth. The predecessor of Sanqi Mutual Entertainnt Ga Company was a small enterprise and did not initially involve the operation of gas and other entertainnt industries in its industrial chain, constantly facing the risk of being swallowed by the market. But relying on the steady developnt of a single industry, Sanqi Mutual Entertainnt Company was listed in 2011. Nevertheless, with poor operations in later stages and market contraction, Sanqi Mutual Entertainnt ultimately could not escape the fate of being acquired.
In 2014, Wuhu Shunrong Auto Parts Co., Ltd. acquired 60% of the shares of Shanghai Sanqi Mutual Entertainnt Technology Co., Ltd. Although the acquisition was nominally, it presented Sanqi Mutual Entertainnt with a worthwhile developnt opportunity. Under multi-party collaboration, the two companies completed the asset restructuring of various industries. Notably, the strategic approach that Sanqi Mutual Entertainnt has always operated was beginning to show signs of success. Sanqi Mutual Entertainnt Company transitioned from a single modern cultural creative company before being acquired to a dual-main-business listed company, where advanced production manufacturing and modern cultural creativity coexist. Correspondingly, Sanqi Mutual Entertainnt's company operation strategy also underwent changes, as the scope of business covered by the original cultural creative industry...
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