(Anti-theft, release tomorrow.) Abstract: With the progress of technology and the coverage mode of smart networks, the recent rise of the gaming industry has been evident to the public, and the thods of ga dissemination are no longer confined to rigid promotional models. The influence of gas has gradually expanded to all aspects of life. Correspondingly, ga companies need to continually integrate resources, innovate, upgrade, and improve performance in line with the high-speed developnt of the tis. A diversification strategy precisely caters to the planning needs and developnt goals within the gaming industry. In the context of economic globalization, diversification strategy, as the preferred developnt model for enterprises, is also applicable to ga companies. This paper explains the impact of diversification strategy on ga company performance through the case of Sanqi Mutual Entertainnt Company.
Keywords: Diversification strategy; Ga company; Performance; Impact; Sanqi Mutual Entertainnt Company
Diversification strategy is a market strategy adopted by enterprises during operation to occupy and explore new markets, and to avoid risks encountered in operating a single business. It involves strategic planning in a targeted and prepared manner to enter new business fields. Applying diversification strategy in ga companies can effectively improve company performance, bringing a process of transformation from quantitative to qualitative for the developnt of ga companies.
1. Macroscopic background of diversification strategy
In 2021, with the effective control of the pandemic by the governnt, people's lives returned to normal, and the economic and cultural sectors also showed a promising recovery outlook. On April 30, 2021, according to data published by the National Bureau of Statistics, the developnt of the national cultural industry had basically returned to pre-pandemic levels[1]. This is very favorable news for the gaming industry, which holds a large share within the cultural industry. Although the coming of the pandemic did not significantly affect the gaming industry, the inability to conduct offline activities always impacts ga companies' performance. The warming of the cultural industry implies that the significant developnt and prosperity of the cultural industry can promote and lead more ga companies on a path of sustainable developnt[2].
From the outbreak of the pandemic last year to the current stabilization, the governnt has introduced policies supporting the developnt of the cultural industry from various aspects such as finance, system, and economy. Although the pandemic halted people's movents, it could not control the speed of online network dissemination. The ergence of more and more new dia during the pandemic prevention period has boosted the developnt of the cultural industry. However, the competition environnt within the cultural industry has beco extrely fierce as enterprises attempt to squeeze into the online market. Many traditional offline enterprises could not withstand the pandemic's impact and were eliminated by society during this period. However, nurous successfully transford cultural industries erged during these short two years, with most relying on the accelerated transformation and upgrading powered by diversification strategy. They also harvested substantial gains during the pandemic prevention period when residents' consumption levels significantly increased, obtaining more diverse developnt models and inco channels. For instance, the transformation made by Sanqi Mutual Entertainnt during the pandemic prevention period is worth emulating by most ga companies[3].
2. Brief analysis and classification of diversification strategy
(1) Brief analysis of diversification strategy
Diversification strategy was proposed by Igor Ansoff, the father of strategic managent. In his book "Corporate Strategy," he ntioned the classification of diversification strategy. This world-affecting strategic model is involved in the managent governing policies of many countries, so today every small and large enterprise is seeking a foothold according to the developnt model of diversification strategy[4].
(2) Classification of diversification strategy and its anings
Diversification strategy is classified into four types: horizontal diversification, vertical integration, concentric diversification, and holistic diversification. The anings derived from these four different diversification strategy modes also vary. Horizontal diversification refers to enterprises utilizing the original conditions provided by the market to produce new products that et users' new demands, thereby driving market consumption. Vertical integration is when enterprises derive longitudinally based on their developnt status, penetrating into other market fields through the product industry chain to seek new consurs. Concentric diversification focuses more on innovation within existing technology, requiring the production of new products within the existing production scope, achieving transformation through existing technology. Holistic diversification emphasizes expanding the scope of operations, requiring enterprises to connect with related raw materials, technology, and market factors to expand the scope of business[5].
3. The impact of diversification strategy on ga company performance
Throughout the operations of all ga companies, the impact of diversification strategy on ga company performance is divided into changes in the operating mode and shifts in strategic planning. From these two changes, effects gradually erge, driving performance improvent. The influence of diversification strategy is multifaceted. This paper will analyze and study the impact of diversification strategy on ga company performance using Sanqi Mutual Entertainnt Ga Company as an example[6].
(1) Change in operating mode
Currently, the main operating scope of Sanqi Mutual Entertainnt Ga Company is very broad, which is also the advantage brought by the diversification strategy. The company's business involves not only the operation of interactive entertainnt but also encompasses the developnt and publication of mobile and web gas under the banner of Sanqi Mutual Entertainnt Ga Company. In recent developnts, they keep innovating along with the tis' technology, expanding the market to include film and animation ACG content. They are also shaping the market cultural industry chain of Sanqi Mutual Entertainnt Ga Company in music, VR technology, and various entertainnt businesses such as live streaming.
Sanqi Mutual Entertainnt Ga Company was founded in 1995. However, the initial developnt path was not smooth. The predecessor of Sanqi Mutual Entertainnt Ga Company was a small enterprise, and its industry chain did not initially involve the operation of gas or other entertainnt industries, always under the risk of being swallowed by the market. However, with the steady developnt of a single industry, Sanqi Mutual Entertainnt Company was listed in 2011. But with later mismanagent and market contraction, Sanqi Mutual Entertainnt finally did not escape the fate of being acquired.
In 2014, Wuhu Shunrong Auto Parts Co., Ltd. acquired a 60% stake in Shanghai Sanqi Mutual Entertainnt Technology Co., Ltd. Although it was nominally an acquisition, it was an opportunity for Sanqi Mutual Entertainnt to seize. Under multi-faceted cooperation, the two companies completed asset restructuring across various industries. It is worth ntioning that the strategy Sanqi Mutual Entertainnt operated had already shown promise by this ti. Sanqi Mutual Entertainnt Company transford from a single modern cultural and creative company before acquisition to a dual-main-business listed company moving forward with advanced manufacturing and modern cultural creativity. Corresponding company operational strategies of Sanqi Mutual Entertainnt also changed, with the scope of business originally covered by the cultural and creative industry
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