(Anti-theft, will be published tomorrow.) Abstract: With the advancent of technology and the coverage model of intelligent networks, the rise of the ga industry in recent years has been witnessed by the public. The way gas are disseminated is no longer confined to rigid promotional modes, and the influence of gas has gradually expanded to various aspects of life. Correspondingly, ga companies also need to continuously integrate resources, innovate, iterate, and improve performance amid the rapid developnt of the tis. The diversification strategy perfectly caters to the planning needs and developnt goals within the gaming industry. Under the background of economic globalization, as a preferred mode of enterprise developnt, the diversification strategy is equally applicable to ga companies. This article uses Sanqi Mutual Entertainnt Company as an example to explain the impact of the diversification strategy on the performance of ga companies.
Keywords: Diversification Strategy; Ga Company; Performance; Impact; Sanqi Mutual Entertainnt Company
The diversification strategy is a market strategy asure that enterprises adopt during operation to occupy more new markets and explore new markets. It is also a strategic plan for an enterprise to avoid risks encountered in operating a single business and to enter new business fields with targets and preparations. The practical application of the diversification strategy to ga companies can effectively improve company performance, bringing about a transformation in the developnt of ga companies from quantitative change to qualitative change.
1. The Macro Background of the Diversification Strategy
Entering 2021, with the country's effective control over the pandemic, people's lives have returned to normal, and the economic and cultural landscape is showing a great recovery trend. On April 30, 2021, according to data released by the National Bureau of Statistics, the developnt of the national cultural industry had basically returned to the pre-pandemic level [1]. This is very favorable news for the ga industry, which occupies a large proportion of the cultural industry. Although the advent of the pandemic did not significantly impact the ga industry, the inability to conduct offline activities always affected the performance of ga companies. The recovery of the cultural industry ans that the great developnt and prosperity of the cultural industry can promote more ga companies to embark on a path of sustainable developnt for most ga companies [2].
From the outbreak of the pandemic last year to the current stabilization, the country has introduced relevant policies from multiple aspects such as finance, systems, and finance to support the developnt of the cultural industry. Although the pandemic has hindered people's travel, it cannot control the spread speed of online networks. The ergence of an increasing number of new dia drove the developnt of the cultural industry during the epidemic prevention period. However, the competitive environnt within the cultural industry has beco very fierce due to enterprises' rush to enter the online market. Many traditional offline companies have been eliminated by society in this short two years under the influence of the pandemic. Still, many cultural industries have successfully transford and erged during this period. These enterprises mostly relied on the diversification strategy model to accelerate transformation and upgrading, also gaining abundant harvests during the epidemic prevention period when the consumption level of residents significantly increased. They gained more diversified developnt models and capital inco channels. For example, the transformation made by Sanqi Mutual Entertainnt during the epidemic prevention period is worth most ga companies learning from [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," which ntioned the classification of diversification strategy. This world-influencing strategic model has been involved in the managent policies in multiple countries, leading every size of the enterprise to seek a place according to the developnt model of the diversification strategy [4].
(2) Classification of Diversification Strategy and Its Implications
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 each have different anings. Horizontal diversification refers to enterprises using the original market conditions to produce new products that can et new user needs, thereby driving market consumption. Vertical integration refers to enterprises, based on their developnt situation, vertically derive and use product industry chains to infiltrate other market fields for new consur objects. Concentric diversification focuses more on innovation of existing technology, requiring the production of new products within the original production scope. The whole process is realized through the transformation of existing technology. Conglorate diversification focuses more on expanding the operational scope, where enterprises need to connect with related raw materials, technology, and market factors of their products to expand their operational scope [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 the diversification strategy on ga company performance is uniformly divided into two parts: changes in the operational model and shifts in strategic planning. From these two parts, changes gradually produce effects driving the enhancent of company performance. The impact brought by the diversification strategy is multifaceted. This paper will take Sanqi Mutual Entertainnt Ga Company as an example to study and analyze the impact of the diversification strategy on the performance of ga companies [6].
(1) Changes in Operational Model
Currently, the primary operational scope of Sanqi Mutual Entertainnt Ga Company is quite extensive, which is also due to the advantages brought by the diversification strategy. The company's business is not only involved in the operation of interactive entertainnt. At the sa ti, the research and publishing of mobile gas and web gas under Sanqi Mutual Entertainnt Ga Company are also handled entirely. Moreover, in recent years of developnt, the company has continued to innovate by keeping pace with technology, expanding the market layout to film and ani, and shaping Sanqi Mutual Entertainnt Ga Company's market cultural industry chain in music, VR technology, and various live broadcast pan-entertainnt businesses.
In 1995, Sanqi Mutual Entertainnt Ga Company was established, but the early developnt path was not smooth. The predecessor of Sanqi Mutual Entertainnt Ga Company was a small enterprise. Initially, the industry chain of Sanqi Mutual Entertainnt did not involve operations in the ga and other entertainnt industries, with a constant risk of being annexed by the market. However, relying on the steady developnt of a single industry, Sanqi Mutual Entertainnt Company went public in 2011. But with poor subsequent operations and market contraction, Sanqi Mutual Entertainnt still 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 the acquisition was nominal, it was an opportunity for developnt worth seizing for Sanqi Mutual Entertainnt. Under multi-party collaboration, the two companies completed asset restructuring across various industries. It is worth ntioning that the expansion strategy that Sanqi Mutual Entertainnt has always operated had already begun to show its potential at this ti. Sanqi Mutual Entertainnt Company transford from a single modern cultural creative company before the acquisition to a dual-main business listed company that runs advanced manufacturing and modern cultural creativity in parallel. Correspondingly, the company's operational strategy of Sanqi Mutual Entertainnt also underwent changes. The business scope under the cultural creative industry initially covered.
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