(Anti-theft, post at night.) Abstract: With the advancent of technology and the coverage model of smart networks, the rise of the gaming industry in recent years is evident. The way gas are propagated is no longer limited to rigid promotional modes. The influence of gas is gradually expanding into all aspects of life. Correspondingly, gaming companies need to continuously integrate resources, innovate and upgrade, and improve performance with the rapid developnt of the tis. Diversification strategy perfectly aligns with the planning needs and developnt goals within the gaming industry. Against the backdrop of economic globalization, it remains a preferred mode of developnt for enterprises and 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; Gaming company; Performance; Impact; Sanqi Mutual Entertainnt Company
Diversification strategy is a market strategy thod adopted by enterprises in the operation process to occupy more new markets and explore new markets. It is also a strategic plan used by enterprises to avoid risks encountered in operating a single business, targeting and preparing to enter new business fields. Applying diversification strategy to gaming companies can effectively improve company performance, bringing about a transition from quantitative change to qualitative change in the developnt of gaming companies.
1. The macro background of the diversification strategy
Entering 2021, with the effective control of the pandemic by the state, people's lives have returned to normal, and the economic and cultural sectors have shown a good 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 basically returned to its pre-pandemic level[1]. This is very favorable news for the gaming industry, which accounts for a large proportion of the cultural industry. Although the arrival of the pandemic did not greatly impact the gaming industry, the inability to conduct offline activities always affected the performance of gaming companies. The revitalization of the cultural industry ans that the great developnt and prosperity of the cultural industry can promote and drive more gaming companies onto a path of sustainable developnt [2].
From the outbreak of last year's pandemic to the current stabilization of the pandemic, the country has introduced relevant policies supporting the developnt of the cultural industry from various aspects such as finance, systems, and finance. Although the pandemic has hindered people's travel, it cannot control the speed of online network dissemination. More and more new dia have erged to drive the developnt of the cultural industry during the pandemic prevention period. However, because every enterprise wants to squeeze into the online market, the competitive environnt in the cultural industry is very intense. Many traditional offline enterprises have been eliminated by society under the impact of the pandemic at this ti, but in just these two years, many successful transformations in the cultural industry have also erged. Most of these companies rely on the diversification strategy model to accelerate transformation and upgrade, and have also reaped substantial rewards during the pandemic prevention period when residents' consumption level has significantly increased, obtaining more diversified developnt modes and inco channels. For example, the transformation made by Sanqi Mutual Entertainnt Company during the pandemic prevention period is worth learning from for most gaming companies [3].
2. Brief analysis and classification of the diversification strategy
(1) Brief analysis of the diversification strategy
The diversification strategy was proposed by the father of strategic managent, Igor Ansoff, in his book "Corporate Strategy." This world-influencing strategic model has been involved in managent guidelines and policies of various countries, to the extent that today every large and small enterprise is seeking a place according to the developnt model of diversification strategy[4].
(2) Classification and aning of diversification strategy
The 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 have different anings. Horizontal diversification refers to enterprises using the original conditions provided by the market to produce new products that can et new user needs, thereby driving market consumption; vertical integration refers to enterprises deriving vertically based on their own developnt situation and penetrating the product value chain into other market fields to seek new consurs; concentric diversification focuses more on original technology innovation, requiring the production of new products within the original production range, achieving through the transformation of original technology; conglorate diversification pays more attention to the change of business scope expansion, requiring enterprises to expand the business scope by connecting raw materials, technology, market and other factors related to their own products [5].
3. The impact of diversification strategy on the performance of gaming companies
It can be said that in the operation processes of all gaming companies, the impact of diversification strategy on gaming company performance is uniformly divided into two parts: changes in the operating model and shifts in strategic planning. The effects gradually generated by these two parts drive the company's performance improvent. The impact brought by diversification strategy is multifaceted. This paper will take Sanqi Mutual Entertainnt Ga Company as an example to analyze and study the impact of diversification strategy on gaming company performance [6].
(1) Changes in the operating model
At present, the main operating scope of Sanqi Mutual Entertainnt Ga Company is very wide, which is also the advantage brought by the diversification strategy. The company's business not only involves the operation of interactive entertainnt, but also fully covers the developnt and distribution of mobile and web gas, keeping up with modern technology through continuous innovation in recent years, expanding the market to film and animation in the two-dinsional space, and shaping the market cultural industrial chain belonging to Sanqi Mutual Entertainnt Ga Company in the fields of music and VR technology as well as various general entertainnt businesses like live broadcasting.
In 1995, Sanqi Mutual Entertainnt Ga Company was established, but its initial developnt path was not smooth. The predecessor of Sanqi Mutual Entertainnt Ga Company was a small enterprise. At first, Sanqi Mutual Entertainnt's industrial chain did not involve the operation of ga and entertainnt industries, always facing the risk of being swallowed by the market, but relying on steady developnt of a single industry, Sanqi Mutual Entertainnt Company went public in 2011. However, with poor late-stage operation 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% of Shanghai Sanqi Mutual Entertainnt Technology Co., Ltd.'s shares. Although nominally acquired, for Sanqi Mutual Entertainnt, this was a developntal opportunity worth seizing. The two companies completed various industrial asset reorganizations through extensive collaboration. It is worth ntioning that the strategic operations that Sanqi Mutual Entertainnt has always pursued are starting to erge, transforming from a single modern cultural creative company before the acquisition to the now dual-focused listed company combining advanced production manufacturing and modern cultural creativity. Correspondingly, Sanqi Mutual Entertainnt's company operational strategy is also undergoing changes, with the originally covered business scope of the cultural creative industry.
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