(Anti-theft, will release tomorrow.) Abstract: Accompanied by technological advancent and the coverage model of intelligent networks, the rise of the gaming industry in recent years has been evident to the populace. The dissemination thods for gas are no longer restricted to rigid promotional models, and the influence of gas has gradually expanded to all aspects of life. Correspondingly, ga companies also need to continuously integrate resources, innovate and iterate, and improve performance as ti progresses swiftly. The diversification strategy perfectly matches the planning needs and developnt goals within the gaming industry. Against the backdrop of economic globalization, diversification strategy, as the preferred mode of corporate developnt, is equally applicable to ga companies. This article exemplifies 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
Diversification strategy is a market strategic thod adopted by enterprises during the operation process to capture and develop new markets. It is also used by enterprises to avoid risks encountered in operating a single business, strategically planning to enter new business fields with purpose and preparation. Practically applying the diversification strategy to ga companies can effectively enhance company performance, leading them through a process from quantitative change to qualitative transformation.
1. The Macro Background of Diversification Strategy
Entering 2021, under the effective control of the pandemic by the state, people's lives have resud normalcy, and economic and cultural landscapes show a great revival. On April 30, 2021, according to data disclosed by the National Bureau of Statistics, the developnt of the national cultural industry has basically recovered to pre-pandemic levels [1], which is very favorable news for the gaming industry—heavily weighted in the cultural industry—even though the arrival of the pandemic did not greatly affect the gaming industry, the inability to conduct offline activities has consistently impacted ga company performance. With the recovery of the cultural industry, this signifies for most ga companies that the grand developnt and prosperity of the cultural industry can drive more ga companies onto a path of sustainable developnt [2].
From the outbreak of last year's pandemic to the current stabilization, the state has introduced relevant policies from multiple aspects such as finance, institutions, and finance to support the developnt of the cultural industry. Although the pandemic has hindered people's travel, it cannot control the propagation speed of the online network; more and more new dia have erged during the pandemic prevention period, driving the developnt of the cultural industry. However, due to each enterprise wanting to squeeze into the online market, the competitive environnt within the cultural industry is extrely fierce. Nurous traditional offline enterprises couldn't withstand the impact of the pandemic and were eliminated by society. Yet during this brief two-year period, many successful transformations within the cultural industry have erged, relying chiefly on the diversification strategy mode to accelerate transformation and upgrades. Sa during the pandemic prevention period with significantly increased resident consumption levels, achieving fruitful outcos with more diversified developnt modes and funding inco channels. The transformation made by Sanqi Mutual Entertainnt during the pandemic prevention period serves as a lesson for most ga companies [3].
2. A Brief Analysis and Classification of Diversification Strategy
(1) A Brief Analysis of Diversification Strategy
Diversification strategy was proposed by the pioneer of strategic managent, Igor Ansoff. In his book "What Is Corporate Strategy," he ntioned the classification of diversification strategy. This strategic mode, which influences the world, is involved in the managent guidelines and policies of multiple countries. As a result, today, every large and small enterprise is striving for a foothold according to the diversification strategy's developnt mode [4].
(2) Classification and aning of Diversification Strategy
The diversification strategy is divided into four types: horizontal diversification, vertical integration, concentric diversification, and overall diversification. The four different modes derived from the diversification strategy each have different anings. Horizontal diversification refers to creating new products that can satisfy the new demands of users by utilizing the original conditions provided by the market, thereby driving market consumption; vertical integration is the vertical derivation of enterprises according to their developnt situation, infiltrating product industry chains into other market fields to seek new consur targets; concentric diversification focuses more on the innovation of existing technologies, requiring the production of new products within the existing production scope, achieving this through the tamorphosis of existing technologies; overall diversification focuses more on expanding changes in the business scope. Enterprises need to link raw materials, technologies, markets, and other factors related to their products for business scope expansion [5].
3. The Impact of Diversification Strategy on Ga Company Performance
It can be said that in the operation process of all ga companies, the impact of diversification strategy on ga company performance is uniformly divided into two parts: changes in operational mode and strategic planning transfer. Effects gradually manifest from these two parts to drive performance enhancent for companies. The impact 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) Changes in Operational Mode
Currently, Sanqi Mutual Entertainnt Ga Company's main operational scope is quite extensive, which is also attributable to the advantages brought by the diversification strategy. The company business not only involves interactive entertainnt operations, but also integrally manages the research, developnt, and publishing of mobile and web gas. Moreover, in recent years, keeping pace with technological advancents, constantly innovating to widen market presence, it extends layout into film and ani second-dinsion; further shaping its market culture industry chain in music, VR technology, and various live broadcast and other pan-entertainnt businesses.
Established in 1995, Sanqi Mutual Entertainnt Ga Company did not have a smooth developnt path in the early stages. The predecessor of Sanqi Mutual Entertainnt Ga Company was a small-scale enterprise. Initially, Sanqi Mutual Entertainnt's industry chains did not involve the operation of gas or entertainnt industry and always bore the risk of being engulfed by the market. However, relying on the steady developnt of a singular industry, Sanqi Mutual Entertainnt Company was listed in 2011. Despite poor operations and market contraction in later stages, Sanqi Mutual Entertainnt did not escape the fate of acquisition.
In 2014, Wuhu Shunrong Auto Parts Co., Ltd. acquired 60% of the shares of Shanghai Sanqi Mutual Entertainnt Technology Co., Ltd. Despite being acquired nominally, for Sanqi Mutual Entertainnt, this was an opportunity worth grasping for developnt. Through multi-faceted collaboration, the two companies completed asset restructuring across various industries. It is worth ntioning that the strategy continuously operated by Sanqi Mutual Entertainnt at the ti was already beginning to show its potential. Sanqi Mutual Entertainnt transford from a single modern cultural creativity company before acquisition to now a dual-main business listed company advancing modern production manufacturing and modern cultural creativity in parallel. Correspondingly, Sanqi Mutual Entertainnt's company operational strategy also underwent changes, with previously covered business scope of cultural creative industries evolving.
User Comments
0 comments from readers