(Anti-theft, posted at night.) Abstract: With the advancent of technology and the coverage model of smart networks, the rise of the gaming industry in recent years has been evident to the public. The ways of spreading gas are no longer confined 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 update to improve performance, in line with the rapid developnt of the tis. The diversification strategy just fits the planning needs and developnt goals within the gaming industry. Under the background of economic globalization, the diversification strategy, as the preferred mode of enterprise developnt, is equally applicable to ga companies. 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 ans adopted by enterprises to occupy new markets and explore new markets more during operation, and is also a strategic plan used to avoid risks encountered in the operation of a single business and to enter new business fields with targeted preparation. Applying diversification strategy to ga companies can effectively improve company performance and bring about a process of transformation from quantitative to qualitative change in the developnt of ga companies.
1. The macro background of diversification strategy
Entering 2021, under the effective control of the pandemic by the state, people's lives have returned to normal, and the economy and culture also show a good situation of recovery. On April 30, 2021, according to relevant data released by the National Bureau of Statistics, the developnt of the national cultural industry has basically recovered to pre-pandemic levels [1]. For the gaming industry, which occupies a large proportion within the cultural industry, this is very favorable news. Although the arrival of the pandemic did not greatly affect the gaming industry, the inability to carry out offline activities always impacts the performance of ga companies. Through the warming up of the cultural industry, for most ga companies, this ans 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 pandemic stabilization, the state issued relevant policies from multiple aspects such as finance, system, and finance to support the developnt of the cultural industry. Although the pandemic has thwarted people's travel, it cannot control the speed of online network dissemination. Increasingly, more new dia have erged, driving the developnt of the cultural industry during the pandemic prevention and control period. However, as enterprises all want to squeeze into the online market, the competitive environnt among cultural industries is very intense. Many traditional offline enterprises have been eliminated by society due to the impact of the pandemic. But within just two years, many successful transformation cultural industries have erged, most relying on the diversification strategy model to accelerate transformation and upgrade. During the pandemic prevention and control period, this also resulted in considerable gains due to significant increases in resident consumption levels, achieving more diverse developnt modes and inco channels. For instance, the transformation made by Sanqi Mutual Entertainnt Company during the pandemic prevention and control period is worth imitation by most ga companies [3].
2. Simplified analysis and classification of diversification strategy
(a) Simplified analysis of diversification strategy
Diversification strategy was proposed by the ancestor of strategic managent, Igor Ansoff, who ntioned the classification of diversification strategy in his book "What is Corporate Strategy". This strategic model influential worldwide is involved in managent policies and policies in multiple countries, so today every large and small enterprise is seeking a place according to the developnt model of diversification strategy [4].
(b) Classification and implications of diversification strategy
There are four types of diversification strategy: horizontal diversification, vertical integration, concentric diversification, and overall diversification. The four different mode implications derived from the diversification strategy also differ from each other. Horizontal diversification refers to enterprises using the original conditions provided by the market to produce new products that et users' new needs, thereby driving market consumption; vertical integration refers to enterprises developing vertically based on their own developnt situation, using product industry chain penetration into other market fields to seek new consur objects; concentric diversification places more emphasis on innovation of existing technology, requiring new product production within the original production scope, achieving transformation through the tamorphosis of existing technology; overall diversification places more emphasis on changes in operating range extension, enterprises need to connect with raw materials, technology, market, and other factors related to their own products to expand the operating range [5].
3. The impact of diversification strategy on the performance of ga companies
It can be said that during the operation of all ga companies, the impact of diversification strategy on ga company performance is uniformly divided into two parts: change in operating mode and shift in strategic planning. From these two parts, from changes gradually generating effects to drive company performance improvent, the impact brought by diversification strategy is multifaceted. This paper will take Sanqi Mutual Entertainnt Ga Company as an example to analyze the impact of diversification strategy on the performance of ga companies [6].
(1) Change in operating mode
Currently, the main operating range of Sanqi Mutual Entertainnt Ga Company is very broad, which is also due to the advantages brought by diversification strategy. The company's business not only involves the operation of interactive entertainnt but also covers the developnt and issuance of mobile gas and web gas under Sanqi Mutual Entertainnt Ga Company. In recent years, keeping pace with technological advancents, it has continuously innovated, expanding the market to layout films and ani in the 'second dinsion', and also sculpting its own market cultural industry chain within pan-entertainnt businesses such as music, VR technology, and various broadcasts.
In 1995, Sanqi Mutual Entertainnt Ga Company was established, but the early developnt road was not smooth. The predecessor of Sanqi Mutual Entertainnt Ga Company was a small enterprise that didn't involve the operation of gas and other entertainnt industries in its industrial chain, and was at risk of being swallowed by the market at any ti. However, relying on steady developnt in the single industry, Sanqi Mutual Entertainnt Company went public in 2011. Yet with poor operation and market contraction at a later stage, Sanqi Mutual Entertainnt eventually couldn't escape being acquired.
In 2014, Wuhu Shunrong Auto Parts Co., Ltd. acquired Shanghai Sanqi Mutual Entertainnt Technology Co., Ltd. with 60% equity, despite being nominally acquired. For Sanqi Mutual Entertainnt, this was a developnt opportunity worth seizing. Through multi-party collaboration between the two companies, all industry asset restructuring was completed. Notably, Sanqi Mutual Entertainnt's exhibition strategy, which has always been operated, was beginning to show its sharpness. Sanqi Mutual Entertainnt Company transford from a single modern cultural creative company before being acquired to nowadays a dual-main business listed company of advanced production manufacturing and modern cultural creativity. Correspondingly, the operation strategy of Sanqi Mutual Entertainnt Company was also undergoing changes, and the business scope covered by the original cultural creative industry...
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