(Anti-theft, to be published tomorrow.) Abstract: With the advancent of technology and the pervasive coverage of intelligent networks, the rise of the ga industry in recent years has been evident to all. The thods of ga dissemination are no longer confined to rigid promotional modes, and the influence of gas has gradually expanded to all aspects of life. Correspondingly, ga companies must continuously integrate resources, innovate, and enhance performance in line with the rapid developnt of the era. A diversification strategy precisely aligns with the planning needs and developnt goals within the ga industry. Against the backdrop of economic globalization, a diversification strategy, as the preferred model for enterprise developnt, also applies to ga companies. This article uses Sanqi Mutual Entertainnt Company as an example to illustrate the impact of diversification strategies on the performance of ga companies.
Keywords: Diversification strategy; Ga companies; Performance; Impact; Sanqi Mutual Entertainnt Company
A diversification strategy is a market strategy employed by enterprises during operations to gain and explore new markets. It is also a strategic plan used by enterprises to mitigate risks encountered in singular business operations and to enter new business fields with focus and preparation. The practical application of diversification strategies in ga companies can effectively enhance company performance, bringing about a transformation from quantitative to qualitative changes in the developnt of ga companies.
1. The Macroeconomic Background of Diversification Strategy
Entering 2021, under the effective control of the pandemic by the country, people's lives are back on track, and the economic and cultural scene is presenting a great recovery. On April 30, 2021, according to 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 favorable news for the ga industry, which occupies a significant portion of the cultural industry. Although the pandemic did not severely impact the ga industry, the inability to conduct offline activities has always affected the performance of ga companies. The revival of the cultural industry suggests to most ga companies that the great developnt and prosperity of the cultural industry can promote more ga companies to embark on a path of sustainable developnt [2].
From the outbreak of the pandemic last year to the current stabilization, the country has introduced related policies from financial, institutional, and financial aspects to support the developnt of the cultural industry. While the pandemic has halted people's travel, it cannot control the speed of online network dissemination. The ergence of more and more new dia has driven the developnt of the cultural industry during the pandemic prevention period. However, as all enterprises strive to enter the online market, the competitive environnt within the cultural industry has beco very fierce. Many traditional offline enterprises could not withstand the impact of the pandemic and were eliminated by society during this ti. Yet, in just two short years, many successfully transford cultural industries have erged, relying on a diversification strategy model to accelerate transformation and upgrading. During the pandemic prevention period, when residents' consumption levels significantly increased, these companies have also reaped substantial gains, acquiring more diversified developnt models and revenue channels. For example, the transformation made by Sanqi Mutual Entertainnt Company during the pandemic prevention period is worth emulating for most ga companies [3].
2. Brief Analysis and Classification of Diversification Strategy
(A) Brief Analysis of Diversification Strategy
Diversification strategy was proposed by the pioneer of strategic managent, Igor Ansoff, in his book "Corporate Strategy." The classification of diversification strategy ntioned in this world-influencing strategic model is reflected in the managent policies of many countries, leading to every enterprise, large or small, seeking a place according to the developntal model of diversification strategy today [4].
(B) The Classification and aning of Diversification Strategy
Diversification strategy is divided into four types: horizontal diversification, vertical integration, concentric diversification, and conglorate diversification. The four different models derived from diversification strategy have distinct anings: horizontal diversification refers to businesses using the original conditions provided by the market to produce new products that et new user needs, thereby driving market consumption; vertical integration is when enterprises vertically derive based on their developnt status, using the product industry chain to penetrate other market fields to seek new consur targets; concentric diversification focuses more on innovation with existing technologies, requiring the production of new products within the existing production range, the entire process is realized through the transformation of original technologies; conglorate diversification emphasizes expanding operational range changes, linking factors such as raw materials, technology, and market related to self-products for operational range expansion [5].
3. The Impact of Diversification Strategy on Ga Company Performance
It can be said that during the operation of all ga companies, the impact of diversification strategy on ga company performance can be uniformly divided into two parts: changes in operational mode and shifts in strategic planning. The effects gradually generated from these two parts lead to the enhancent of company performance. The impact brought by diversification strategy is multifaceted. This paper will analyze the impact of diversification strategy on ga company performance with Sanqi Mutual Entertainnt Ga Company as an example [6].
(1) Changes in Operational Mode
Currently, the main operating range 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 fully handles the research and distribution of mobile and web gas under its subsidiary, and continuously innovates, keeping pace with contemporary technology in recent developnts. The company has expanded the market to include the layout of film, ani ACG, as well as shaping its market cultural industry chain in music, VR technology, and various live broadcast and general entertainnt businesses.
In 1995, Sanqi Mutual Entertainnt Ga Company was established, but the developnt path at first was not smooth. The precursor of Sanqi Mutual Entertainnt Ga Company was a small enterprise, which initially did not involve the operation of gas and other entertainnt industries in its industrial chain. There was always the risk of being swallowed by the market. However, relying on the stable developnt of a single industry, Sanqi Mutual Entertainnt Company was listed in 2011. Despite this, due to subsequent poor operations and market contraction, Sanqi Mutual Entertainnt eventually could not escape being acquired.
In 2014, Wuhu Shunrong Auto Parts Co., Ltd. acquired 60% stake in Shanghai Sanqi Mutual Entertainnt Technology Co., Ltd. Although it was officially acquired, this was a developnt opportunity worth seizing for Sanqi Mutual Entertainnt. The two companies completed asset restructuring of various industries through extensive collaboration. It is noteworthy that Sanqi Mutual Entertainnt's previously operated strategy began to show its prowess at this ti. Sanqi Mutual Entertainnt Company transitioned from being a single modern cultural creative company before the acquisition to a listed company currently operating with dual main businesses of advanced manufacturing and modern cultural creativity. Corresponding to this, Sanqi Mutual Entertainnt's company operation strategy is undergoing changes, and the business scope of the original cultural creative industry
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