(Anti-theft, posted at night.) Abstract: Accompanied by the advancent of technology and the coverage mode of intelligent networks, the rise of the gaming industry in recent years has been evident to the public. The way gas spread is no longer confined to stereotypical promotion thods, and the influence of gas has gradually expanded to all aspects of life. Accordingly, ga companies also need to continually integrate resources, innovate updates, and improve performance to keep pace with the rapid developnt of the tis. The diversification strategy aptly ets the planning needs and developnt goals within the gaming industry. In the context of economic globalization, the diversification strategy, as the first-choice model for enterprise developnt, is equally applicable to gaming companies. This article uses Sanqi Mutual Entertainnt Company as an example to explain the impact of diversification strategy on the performance of gaming companies.
Keywords: Diversification strategy; Ga company; Performance; Impact; Sanqi Mutual Entertainnt
Diversification strategy is a market strategic thod adopted by enterprises during the operation process to occupy new markets and develop more markets. It is also a strategic plan for enterprises to avoid risks encountered during the operation of a single business by targeted and prepared entry into new business fields. Utilizing diversification strategies in ga companies can effectively improve the company's performance and bring about a process of transition from quantitative change to qualitative change in the developnt of ga companies.
1. Macroscopic background of diversification strategy
Entering into 2021, with the effective control of the pandemic by the state, people's lives are back on track, and the economic culture shows a great recovery trend. On April 30, 2021, according to the relevant data published by the National Bureau of Statistics, the developnt of the national cultural industry basically recovered to the pre-pandemic level[1], which is very favorable news for the gaming industry that holds a significant proportion in the cultural industry. Although the arrival of the pandemic did not severely impact the gaming industry, the inability to conduct offline activities has always affected the performance of ga companies. The recovery of the cultural industry indicates to most ga companies that the grand developnt and prosperity of the cultural industry can promote and drive more ga companies onto the path of sustainable developnt[2].
From the outbreak of the pandemic last year to the current stable pandemic situation, the state has promulgated relevant policies from various aspects such as finance, system, and financial support to aid the developnt of the cultural industry. Although the pandemic hindered people from traveling, it couldn't control the speed of online network spread. More and more new dia have erged, driving the cultural industry developnt during the pandemic prevention period. However, as enterprises compete to enter the online market, the competition environnt within the cultural industry has beco fierce. Nurous traditional offline enterprises couldn't withstand the impact of the pandemic and were socially eliminated at this ti, but many successfully transford cultural industries erged during these short two years. Most of these enterprises accelerated transformation and upgrades relying on the diversification strategy model, harvesting plentiful benefits during the pandemic prevention period when residents' consumption levels significantly improved, gaining more diversified developnt models and inco channels. For instance, the transformation made by Sanqi Mutual Entertainnt during the pandemic prevention period is worth learning from 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 pioneer of strategic managent, Igor Ansoff, in his book "What Is Corporate Strategy," where he ntioned the classification of diversification strategy. This globally influential strategic model has been involved in managent policies and guidelines in various countries, leading every enterprise, big and small, to seek 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 holistic diversification. The four different modes derived from diversification strategy have distinct anings. Horizontal diversification refers to the enterprise using the original conditions provided by the market to produce new products that et new user needs, thereby driving market consumption. Vertical integration is when enterprises vertically derive according to their own developnt situation, using the product industry chain to penetrate other market fields to seek new consur targets. Concentric diversification focuses more on innovation in existing technology, requiring the production of new products within the existing production range, realizing the whole process through the transformation of existing technology. Holistic diversification places more emphasis on expanding the scope of operation change; enterprises need to relate to raw materials, technology, and market factors related to their own products to expand the scope of operation[5].
3. The impact of diversification strategy on the performance of gaming companies
It can be said that in the operation process of all ga companies, the impact of diversification strategy on the performance of ga companies is uniformly divided into two parts: the change of operating mode and the shift of strategic planning. From the transformation of these two parts, effects gradually erge, driving the performance improvent of the company. The impact brought by diversification strategy is multifaceted; this paper will analyze and study the impact of diversification strategy on ga companies' performance with Sanqi Mutual Entertainnt Ga Company as an example[6].
(1) Change of operating mode
Currently, looking at Sanqi Mutual Entertainnt Ga Company's main operating range is very broad; this is also due to the advantages brought by the diversification strategy. The company's business not only involves the operation of interactive entertainnt, but Sanqi Mutual Entertainnt Ga Company also undertakes the research and developnt and distribution of mobile gas and web gas, and in recent years' developnt, it continuously innovates closely following technological trends, expanding the market layout to film and animation ACG (Ani, Comics, Gas), and molds the market cultural industry chain belonging to Sanqi Mutual Entertainnt Ga Company in music and VR technology and various live streaming and other pan-entertainnt business.
In 1995, Sanqi Mutual Entertainnt Ga Company was founded, but the developnt road in the early stage was not smooth sailing. Sanqi Mutual Entertainnt Ga Company's predecessor was a small enterprise, at first, Sanqi Mutual Entertainnt's industry chain did not involve the operation of gas and other entertainnt industries, always facing the risk of being swallowed by the market. But relying on stable developnt of a single industry, Sanqi Mutual Entertainnt Company was listed in 2011, yet accompanied by poor later-stage operation and market tightening, Sanqi Mutual Entertainnt eventually couldn't escape the fate of being acquired.
In 2014, Wuhu Shunrong Auto Parts Co., Ltd. acquired 60% of the equity of Shanghai Sanqi Mutual Entertainnt Technology Co., Ltd. Although nominally acquired, for Sanqi Mutual Entertainnt, this was a developnt opportunity worth seizing. The two companies completed the asset restructuring of various industries through multi-party collaboration. It is worth ntioning that the exhibition strategy that Sanqi Mutual Entertainnt has always operated has already shown signs of success at this ti; Sanqi Mutual Entertainnt Company transford from a single modern cultural and creative company before the acquisition to a dual-main business listed company that simultaneously engages in advanced production manufacturing and modern cultural creativity. Correspondingly, Sanqi Mutual Entertainnt's company operating strategy is also undergoing changes, and the scope of business covered by the original cultural creative industry...
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