(Anti-theft, will release at the ti.) Abstract: Accompanied by technological advancents and the coverage model of intelligent networks, the rise of the gaming industry in recent years has been evident to the public. The propagation thod of gas is no longer restricted to rigid promotional modes, and the influence of gas has gradually expanded to all aspects of life. Correspondingly, gaming companies need to continuously integrate resources, innovate, iterate, and improve performance with the rapid developnt of the tis. Diversification strategy precisely ets the planning needs and developnt goals within the gaming industry. Against the backdrop of economic globalization, diversification strategy, as the preferred mode of enterprise developnt, is equally applicable to gaming companies. This paper elucidates the impact of diversification strategy on ga companies' performance using Sanqi Mutual Entertainnt Company as an example.
Keywords: Diversification strategy; Ga company; Performance; Impact; Sanqi Mutual Entertainnt Company
Diversification strategy is a market strategy tool that enterprises adopt during the operational process to seize and explore new markets and is a strategic plan used by enterprises to avoid risks encountered during the operation of a single business and to enter new business fields with targeted preparation. Applying diversification strategy to gaming companies can effectively enhance company performance and bring about a transformation from quantitative changes to qualitative changes in ga company developnt.
1. The Macroeconomic Background of Diversification Strategy
Entering 2021, under effective control of the pandemic by the state, people's lives are back on track, displaying a favorable trend of economic and cultural recovery. On April 30, 2021, according to relevant data released by the National Bureau of Statistics, the developnt of the nationwide cultural industry has basically returned to pre-pandemic levels[1]. This is highly beneficial news for the ga industry, which occupies a significant proportion of the cultural industry. Although the pandemic did not have a major impact on the gaming industry, the inability to conduct offline activities always affects ga company performance. The warming of the cultural industry ans a great developnt and prosperity that can drive more gaming companies onto the path of sustainable developnt for most gaming companies[2].
From the outbreak of last year's pandemic to the current stabilization, the state has issued relevant policies from multiple aspects such as fiscal, institutional, and financial to support the developnt of the cultural industry. Although the pandemic has halted 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 period. However, as each enterprise wants to squeeze into the online market, the competitive environnt among cultural industries is very intense. Many traditional offline enterprises could not withstand the pandemic impact and were eliminated by society. But in these short two years, many successful transformation cultural industries have erged, and these enterprises mostly relied on diversification strategy models to accelerate transformation and upgrades. During the pandemic prevention period, they have also had substantial gains, obtaining more diversified developnt modes and inco channels. For instance, the transformation made by Sanqi Mutual Entertainnt Company during the pandemic prevention period is worth learning by the majority of gaming companies[3].
2. Analysis and Classification of Diversification Strategy
(a) Analysis of Diversification Strategy
Diversification strategy was proposed by the ancestor of strategic managent Igor Ansoff. In his book "Corporate Strategy," he ntioned the classification of diversification strategy. This world-influencing strategic model has been involved in managent guideline policies of multiple countries, such that today, every enterprise, big or small, seeks a place according to the developnt model of diversification strategy[4].
(b) Classification and aning of Diversification Strategy
Diversification strategy is divided into four types: horizontal diversification, vertical integration, concentric diversification, and holistic diversification. The anings of the four different models derived from diversification strategy each have distinct differences. Horizontal diversification refers to enterprises utilizing the original conditions provided by the market to produce new products that et new user needs, thereby driving market consumption; Vertical integration is the vertical derivation by enterprises according to their own developnt, penetrating the product industry chain into other market fields to seek new consur targets; Concentric diversification focuses more on innovation of existing technology, requiring production of new products within the existing production range, realizing transformation through the tamorphosis of existing technology; Holistic diversification focuses more on changes in expanding the operation scope, requiring enterprises to connect with factors such as raw materials, technology, and market related to their own products to expand the operation scope[5].
3. The Impact of Diversification Strategy on Ga Company Performance
In the operational process of all gaming companies, the impact of diversification strategy on ga company performance is uniformly divided into two parts: changes in operational mode and shifts in strategic planning. From these two parts of the transformation, effects gradually arise, driving the performance improvent of the company. The impact brought by diversification strategy is multi-faceted. This paper will take Sanqi Mutual Entertainnt Ga Company as an example to analyze and study the impact of diversification strategy on ga company performance[6].
(1) Changes in Operational Mode
Currently, the main operational scope of Sanqi Mutual Entertainnt Ga Company is very extensive, which is also the advantage brought by relying on diversification strategy. The company's business not only involves interactive entertainnt operations, but Sanqi Mutual Entertainnt Ga Company also undertakes the developnt and distribution of mobile gas and web gas. In recent years, during developnt, it continually innovates by keeping up with technology of the tis, expanding the market layout to encompass film and animation, and second-dinsion culture, also creating the market cultural industry chain belonging to Sanqi Mutual Entertainnt Ga Company in music and VR technology, and various live streaming and other pan-entertainnt businesses.
Founded in 1995, Sanqi Mutual Entertainnt Ga Company did not have a smooth developnt road in the early stages. The predecessor of Sanqi Mutual Entertainnt Ga Company was a small enterprise, initially not involved in the operation of gas and other entertainnt industries within its industrial chain, at any ti facing the risk of being swallowed by the market. However, relying on the steady developnt of a single industry, Sanqi Mutual Entertainnt Company was listed in 2011, yet along with subsequent poor operations and market contraction, Sanqi Mutual Entertainnt still could not escape the fate of being acquired.
In 2014, Wuhu Shunrong Auto Parts Co., Ltd. acquired 60% of shares in Shanghai Sanqi Mutual Entertainnt Technology Co., Ltd. Despite being acquired nominally, this was a developnt opportunity worth seizing for Sanqi Mutual Entertainnt. Through multi-side cooperation, the two companies completed asset restructuring of various industries. It is worth ntioning that the exhibition strategy that Sanqi Mutual Entertainnt has always operated showed potential at this ti. Sanqi Mutual Entertainnt Company transford from a single modern cultural creative company before being acquired to today's dual-main business listed company in advanced production manufacturing and modern cultural creativity, corresponding to changes in the company's operational strategy. The scope of business originally covered by the cultural creative industry
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