(Anti-theft, to be published in the evening.) Abstract: Along with technological advancents and the coverage model of intelligent networks, the rise of the ga industry in recent years has been witnessed by the nation. The spread of gas has moved beyond traditional promotional models, and the influence of gas has gradually extended to all aspects of life. Correspondingly, ga companies need to continuously integrate resources, innovate, update, and improve their performance as they keep pace with the rapid developnt of the tis. A diversification strategy perfectly aligns with the planning needs and developnt goals within the gaming industry. In the context of economic globalization, diversification strategy is also applicable as the preferred model for corporate developnt in the ga industry. This article uses Sanqi Mutual Entertainnt Company as an example to explain the impact of diversification strategy on the performance of ga companies.
Keywords: Diversification strategy; Ga company; Performance; Impact; Sanqi Mutual Entertainnt Company
Diversification strategy is a market strategy tool that enterprises adopt in the process of operation to occupy more new markets and explore new ones. It also allows enterprises to avoid the risks encountered in the operation of a single business. It is a strategic plan for entering new business fields with targeting and preparedness. The practical application of a diversification strategy in ga companies can effectively enhance company performance and bring about a transformation from quantitative to qualitative change in the developnt of ga companies.
1. The Macro Background of Diversification Strategy
As we enter 2021, with the effective control of the pandemic by the state, people's lives have returned to normal, and the economic culture also shows a promising revival trend. On April 30, 2021, according to data released by the National Bureau of Statistics, the developnt of the national cultural industry basically recovered to pre-pandemic levels [1]. This is very favorable news for the ga industry, which holds a significant proportion within the cultural industry. Although the arrival of the pandemic did not greatly impact the ga industry, the inability to conduct offline activities always affects the performance of ga companies. The recovery of the cultural industry indicates that, for most ga companies, this can promote the larger scale growth and developnt, driving more ga companies to embark on a path of sustainable developnt [2].
From the outbreak of last year's pandemic to the current stability, the country has promulgated relevant policies from fiscal, institutional, and financial aspects to support the developnt of the cultural industry. Although the pandemic has blocked people's travel footsteps, it cannot control the speed of online network transmission. More and more new dia have erged, driving the developnt of the cultural industry during pandemic prevention and control. However, as each enterprise strives to enter the online market, the competitive environnt within the cultural industry is very intense. Many traditional offline enterprises cannot withstand the impact of the pandemic and are eliminated by society at this ti. However, within these short two years, nurous successful transformations in the cultural industry have erged, most of which accelerated transformation and upgrading relying on diversification strategies. During the pandemic prevention and control period, when residents' consumption levels significantly increased, they also reaped quite a bit, gaining more diversified developnt models and funding inco channels. For example, the transformation made by Sanqi Mutual Entertainnt Company during pandemic prevention and control is worth learning from 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 father of strategic managent, Igor Ansoff, in his book "Corporate Strategy." He ntioned the classification of diversification strategy. This world-influencing strategic model is involved in managent policy in multiple countries, so today, enterprises of all sizes seek a place according to the developnt model of diversification strategy [4].
(b) Classification and aning of Diversification Strategy
Diversification strategy is generally divided into four types: horizontal diversification, vertical integration, concentric diversification, and conglorate diversification. The four different models derived from diversification strategy also have different anings. Horizontal diversification refers to enterprises using original market conditions to produce new products that satisfy new user needs, thereby driving market consumption. Vertical integration is when enterprises longitudinally develop according to their own developnt situation, utilizing product industry chains to penetrate other market fields to seek new consurs. Concentric diversification focuses more on the innovation of existing technology, requiring new product production within the original production scope through the tamorphosis of existing technology. Conglorate diversification focuses more on changes in expanding business scope. Enterprises need to connect with factors related to raw materials, technology, and markets of their own products to expand the business range [5].
3. Impact of Diversification Strategy on Ga Companies' Performance
It can be said that in the operation process of all ga companies, the impact of diversification strategy on ga companies' performance is unified into two parts: the change of operating mode and the transfer of strategic planning. The gradual effect generated from these two parts drives company performance improvent. The impact brought about by diversification strategy is multifaceted. This paper will take Sanqi Mutual Entertainnt Ga Company as an example to analyze and study the impact of diversification strategy on ga companies' performance [6].
(1) Change of Operating Mode
Currently, the main operating scope of Sanqi Mutual Entertainnt Ga Company is very broad, which also relies on the advantages brought by diversification strategy. The company's business involves not only the operation of interactive entertainnt, but its research, developnt, and distribution of mobile and web gas are also fully encompassed by Sanqi Mutual Entertainnt Ga Company. In recent years, it has kept pace with era technology to continuously innovate, extending the market to the layout of film and ani subcultures. It has also shaped its own market cultural industry chain within music, VR technology, and various live entertainnt businesses.
Sanqi Mutual Entertainnt Ga Company was established in 1995, but its initial developnt path was not smooth sailing. Initially, the predecessor of Sanqi Mutual Entertainnt was a small business, and its industry chain did not involve entertainnt industries like gaming. There was always the risk of being swallowed by the market. However, relying on the steady developnt of a single industry, Sanqi Mutual Entertainnt Company went public in 2011. Accompanied by poor post-operation and market tightening, Sanqi Mutual Entertainnt ultimately could not escape the fate of being acquired.
In 2014, Wuhu Shunrong Auto Parts Co., Ltd. acquired Shanghai Sanqi Mutual Entertainnt Technology Co., Ltd. with 60% equity. Although nominally acquired, for Sanqi Mutual Entertainnt, this was an opportunity for developnt worth grasping. The two companies completed the asset restructuring of various industries through multi-party collaboration. It is worth ntioning that the exhibition strategy that Sanqi Mutual Entertainnt has been operating initially showed its prowess. Sanqi Mutual Entertainnt Company went from a single modern cultural creative company before the acquisition to the current dual-main listed company engaging in advanced production manufacturing and modern cultural creativity. Correspondingly, Sanqi Mutual Entertainnt's company operation strategy also underwent change, the business scope covered by the original cultural creative industry
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