(Anti-theft, to be posted tomorrow.) Abstract: With the advancent of technology and the coverage model of intelligent networks, the rise of the gaming industry in recent years has been evident to the people. The way gas are spread is no longer restricted to stereotypical promotional thods, and the influence of gas has gradually expanded to all aspects of life. Correspondingly, ga companies also need to continuously integrate resources, innovate and update, and improve performance in line with the era's rapid developnt. The diversification strategy precisely caters to the planning needs and developnt goals within the gaming industry. Under the background of economic globalization, the diversification strategy, as the preferred mode of corporate developnt, is also applicable to gaming companies. This paper uses the example of Sanqi Mutual Entertainnt Company to illustrate the impact of a diversification strategy on ga companies' performance.
Keywords: Diversification strategy; Ga company; Performance; Impact; Sanqi Mutual Entertainnt Company
The diversification strategy is a market strategy tool that enterprises use during their operations to occupy and explore new markets. It is also a strategic plan adopted to avoid risks encountered in operating a single business by entering a new business field with preparation and targeting. Applying the diversification strategy to ga companies can effectively improve company performance, bringing the company's developnt from a quantitative to a qualitative change.
1. Macroscopic Background of Diversification Strategy
Stepping into 2021, with the country's effective control of the pandemic, people's lives have returned to normal, and the economy and culture are showing a magnificent recovery trend. On April 30, 2021, data released by the National Bureau of Statistics indicated that the overall developnt of the national cultural industry has recovered to pre-pandemic levels [1]. This is very favorable news for the gaming industry, which holds a considerable proportion in the cultural industry. Although the arrival of the pandemic did not significantly impact the gaming industry, the inability to conduct offline activities always affects ga companies' performance. The cultural industry's warming ans that the great developnt and prosperity of the cultural industry can promote and drive more ga companies to embark on a path of sustainable developnt [2] for most ga companies.
From last year's outbreak of the pandemic to the current stability, the state has promulgated relevant policies from financial, institutional, and financial aspects to support the developnt of the cultural industry. Although the pandemic blocked people's traveling, it could not control the speed of online network dissemination. More and more new dia have appeared, driving the cultural industry developnt during pandemic prevention and control. However, because many enterprises want to squeeze into the online market, the competition environnt within the cultural industry is fierce. Many traditional offline companies could not withstand the pandemic's impact and were eliminated by society. But in these short two years, many successfully transford cultural industries have erged. Most of these enterprises rely on the diversification strategy model to accelerate transformation and upgrading, harvesting bountifully and obtaining diversified developnt modes and revenue channels during the pandemic prevention and control period, when residents' consumption levels have significantly improved. For example, the transformation made by Sanqi Mutual Entertainnt Company during the pandemic prevention and control period is worth emulating by most ga companies [3].
2. Brief Analysis and Classification of Diversification Strategy
(1) Brief Analysis of Diversification Strategy
The diversification strategy was proposed by the pioneer of strategic managent, Igor Ansoff. In his book "Corporate Strategy," he ntioned the classification of diversification strategies. This strategic model, which has influenced the world, is addressed in managent policies in several countries, so much so that every small and large enterprise today seeks its place according to the developnt model of the 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 models derived from the diversification strategy have various anings. Horizontal diversification refers to enterprises utilizing the original conditions provided by the market to produce new products that et users' new needs, thus driving market consumption. Vertical integration is when an enterprise derives vertically based on its developnt situation, using the product supply chain to penetrate other market areas to seek new consurs. Concentric diversification focuses more on innovation of existing technology and requires new product production within the original production range, achieving the entire process through the transformation of existing technology. Conglorate diversification focuses more on expanding the operational scope, requiring enterprises to connect with raw materials, technology, market-related factors to expand their operational scope [5].
3. Impact of Diversification Strategy on Ga Companies' Performance
It can be said that during the operation of all ga companies, the impact of the diversification strategy on ga companies' performance is uniformly divided into two parts: the change of operational mode and strategic planning shift. From these two parts, the transformation gradually produces effects to drive the company's performance improvent. The impact brought by the diversification strategy is multifaceted. This thesis will analyze and study the impact of the diversification strategy on ga companies' performance using the example of Sanqi Mutual Entertainnt Ga Company [6].
(1) Change in Operational Mode
Currently, the main operating scope of Sanqi Mutual Entertainnt Ga Company is quite extensive, which is also relying on the advantages brought by the diversification strategy. The company's business not only involves the operation of interactive entertainnt. At the sa ti, Sanqi Mutual Entertainnt Ga Company is in charge of R&D and publishing of mobile gas and web gas under its umbrella, and in recent years, it has continued to innovate in line with the technology of the tis, expanding the market to the layout of film and ani second-dinsion. It is also shaping the market cultural industry chain belonging to the Sanqi Mutual Entertainnt Ga Company in music, VR technology, and various live broadcasts and other pan-entertainnt businesses.
The establishnt of Sanqi Mutual Entertainnt Ga Company in 1995, however, was not smooth in its early developnt path. Sanqi Mutual Entertainnt Ga Company's predecessor was a small enterprise. Initially, Sanqi Mutual Entertainnt's industrial chain did not involve the operation of gas and other entertainnt industries, always at risk of being swallowed by the market. However, relying on the stable developnt of a single industry, Sanqi Mutual Entertainnt Company went public in 2011, but with subsequent poor 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 the equity of Shanghai Sanqi Mutual Entertainnt Technology Co., Ltd. Although it was nominally acquired, it was a developnt opportunity worth seizing for Sanqi Mutual Entertainnt. Through multiple collaborations, the two companies completed asset restructuring for various industries. It is worth ntioning that Sanqi Mutual Entertainnt always operated strategies that initially showed promise. Sanqi Mutual Entertainnt Company has transford from a single modern cultural and creative company before the acquisition to a dual-main-business listed company that now runs advanced manufacturing and modern cultural creativity side by side. Correspondingly, the company's operational strategies have also changed, and the business scope previously covered by the cultural and creative industry.
User Comments
0 comments from readers