(Anti-theft, sent at night.) Abstract: With the advancent of technology and the coverage models of intelligent networks, the rise of the gaming industry in recent years has been witnessed by the populace. The thods of ga dissemination are no longer confined to rigid promotional models, and the influence of gas has gradually expanded to all aspects of life. Correspondingly, gaming companies need to continuously integrate resources, innovate, and update to improve performance, in line with the rapid developnt of the tis. A diversification strategy precisely caters to the planning needs and developnt goals within the gaming industry. Against the backdrop of economic globalization, diversification strategy as a preferred mode of enterprise developnt also applies to gaming companies. This article uses Sanqi Mutual Entertainnt Company as an example to illustrate 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 strategic approach adopted by enterprises during operations to capture and expand new markets. It is also a strategic plan used to avoid risks encountered in operating a single business and to prepare for entering new business fields. Applying diversification strategy to gaming companies can effectively enhance company performance, bringing about a process of transformation from quantitative change to qualitative change for the developnt of gaming companies.
1. The macro background of diversification strategy
Entering 2021, with the effective control of the pandemic in the country, people's lives have returned to normal, and the economy and culture are showing a vibrant recovery. 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 beneficial news for the gaming industry, which accounts for a large portion of the cultural industry. Although the pandemic did not significantly impact the gaming industry, the impossibility of conducting offline activities has always affected the performance of gaming companies. The recovery of the cultural industry ans a great opportunity for many gaming companies, as it can promote more gaming companies to embark on a path of sustainable developnt [2].
From the outbreak of the pandemic last year to its current stabilization, the country has introduced relevant policies to support the developnt of the cultural industry in various aspects, including finance, systems, and banking. Although the pandemic has hindered people's travels, it cannot control the rapid spread of online networks. More and more new dia have erged, driving the developnt of the cultural industry during pandemic prevention and control. However, as each enterprise strives to enter the online market, the competitive environnt in the cultural industry is extrely fierce. Many traditional offline enterprises have succumbed to the impact of the pandemic and were eliminated by society. Yet, in these short two years, many culturally-related enterprises have successfully transford. These enterprises largely rely on the accelerated transformation and upgrade through diversification strategy modes, and during the pandemic prevention and control period, when resident consumption levels significantly increased, they have also reaped rich rewards. This has led to more diverse developnt models and inco channels, for instance, the transformation made by Sanqi Mutual Entertainnt Company during the pandemic prevention and control period is worth emulating by most gaming companies [3].
2. A brief analysis and classification of diversification strategy
(a) A brief analysis of diversification strategy
Diversification strategy was proposed by the father of strategic managent, Igor Ansoff. In his book "What is Corporate Strategy," he ntioned the classification of diversification strategy. This world-influencing strategic model has been involved in managent guidelines and policies of multiple countries. As a result, today, every large and small enterprise seeks a foothold following the developnt model of diversification strategy [4].
(b) Classification and anings of diversification strategy
There are four types of diversification strategies: horizontal diversification, vertical integration, concentric diversification, and conglorate diversification. Each mode derived from diversification strategy has different implications. Horizontal diversification refers to enterprises producing new products that et new user needs by utilizing the original conditions provided by the market, thus driving market consumption. Vertical integration involves enterprises extending vertically based on their developnt status, penetrating other market fields through product industry chains to seek new consurs. Concentric diversification focuses more on the innovation of existing technology, requiring the production of new products within the original production scope, and the entire process is realized through the transformation of existing technology. Conglorate diversification emphasizes the expansion of operational scope, whereby enterprises need to integrate factors related to their products, such as raw materials, technology, and market, to expand their operational scope [5].
3. Impact of diversification strategy on the performance of gaming companies
It can be said that in the operation process of all gaming companies, the impact of diversification strategy on performance is uniformly divided into two parts: changes in the operational mode and shifts in strategic planning. The effects from these two parts gradually lead to improved company performance. The impact brought by diversification strategy is multifaceted. This paper will take Sanqi Mutual Entertainnt Ga Company as an example to analyze the impact of diversification strategy on gaming companies' performance [6].
(1) Changes in operational mode
Currently, the main operational scope of Sanqi Mutual Entertainnt Ga Company is quite extensive, thanks to the advantages brought by diversification strategy. The company's business not only involves the operation of interactive entertainnt but also entirely handles the developnt and distribution of mobile gas and web gas. Furthermore, in recent years, keeping pace with technological advancent, it has continuously innovated, expanding its market to include film and ani, also shaping its unique market cultural industry chain within music, VR technology, and various live entertainnt businesses.
Sanqi Mutual Entertainnt Ga Company was established in 1995, but the initial developnt path was not smooth sailing. The predecessor of Sanqi Mutual Entertainnt Ga Company was a small enterprise, and at the beginning, the industrial chain did not involve operations in gaming and other entertainnt industries, facing constant risk of being absorbed by the market. However, relying on steady developnt of a single industry, Sanqi Mutual Entertainnt Company went public in 2011. Nonetheless, coupled with poor post-period operations and market tightening, Sanqi Mutual Entertainnt ultimately couldn't escape being acquired.
In 2014, Wuhu Shunrong Auto Parts Co., Ltd. acquired 60% of shares of Shanghai Sanqi Mutual Entertainnt Technology Co., Ltd. Despite being acquired nominally, this presented Sanqi Mutual Entertainnt with a developnt opportunity worth seizing. The two companies, through multi-party collaboration, completed asset restructuring across different industries. Notably, the strategy Sanqi Mutual Entertainnt had been operating had already begun to show promise. Sanqi Mutual Entertainnt Company transford from a single modern cultural creative company before the acquisition to a dual main-business listed company, simultaneously advancing production manufacturing and modern cultural creativity. Correspondingly, the company's business strategy has been changing, with the original scope of operation involving cultural creative industries evolving significantly.
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