(Anti-theft, to be published later.) Abstract: With the advancent of technology and the coverage model of intelligent networks, the recent rise of the gaming industry has been evident to the public, and the way gas are spread is no longer confined to rigid promotional models. The influence of gas has gradually expanded to all aspects of life, and corresponding gaming companies need to continuously integrate resources, innovate and update, and improve performance in line with the rapid developnt of the tis. Diversification strategy perfectly aligns with the planning needs and developnt goals within the gaming industry. In the context of economic globalization, the diversification strategy, as a preferred mode of corporate developnt, is equally applicable to gaming companies. This article explains the impact of the diversification strategy on the performance of gaming companies using Sanqi Mutual Entertainnt Company as an example.
Keywords: Diversification strategy; Gaming company; Performance; Impact; Sanqi Mutual Entertainnt Company
Diversification strategy is a market strategy approach adopted by enterprises to capture more and new markets during the operation process. It is also a strategic planning thod used by enterprises to avoid risks encountered during the operation of a single business and to enter new business fields with targets and preparation. Applying the diversification strategy to gaming companies can effectively improve company performance and lead to the transformation from quantitative change to qualitative change in the developnt of gaming companies.
1. Macro Background of Diversification Strategy
Entering 2021, with the effective control of the pandemic by the state, people's lives have returned to normal, and the economic culture also presents a promising 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 accounts for a large proportion of the cultural industry, this is very favorable news. Although the arrival of the pandemic did not greatly affect the gaming industry, the inability to conduct offline activities always affected the performance of gaming companies. Through the warming of the cultural industry, for most gaming companies, this ans that the great developnt and prosperity of the cultural industry can promote more gaming companies to embark on a path of sustainable developnt [2].
From last year's outbreak of the pandemic to the current stability, the country has issued relevant policies to support the developnt of the cultural industry from multiple aspects such as finance, institution, and finance. Although the pandemic has hindered people's travel, it has not controlled 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 control period. However, due to the desire of various enterprises to enter the online market, the competitive environnt within the cultural industry is very intense. Many traditional offline enterprises failed to withstand the impact of the pandemic and were eliminated by society, but during this short span of two years, many cultural industries successfully transford. Most of these enterprises accelerated transformation and upgrading relying on the diversification strategy model, and during the pandemic control period with significantly increased resident consumption levels, they also gained substantial rewards, obtaining more diversified developnt models and channels of inco. For example, the transformation Sanqi Mutual Entertainnt Company underwent during the pandemic control period is worth emulating by most gaming companies [3].
2. Brief Analysis and Classification of Diversification Strategy
(a) Brief Analysis of Diversification Strategy
Igor Ansoff, the founder of strategic managent, proposed the diversification strategy. In his book "Corporate Strategy," he ntioned the classification of the diversification strategy. This world-influencing strategic model is involved in the managent policies of multiple countries, so much so that today every large and small enterprise is seeking a place according to the developnt model of the diversification strategy [4].
(b) Classification and aning of Diversification Strategy
The diversification strategy is divided into four types: horizontal diversification, vertical integration, concentric diversification, and comprehensive diversification. The four different modes derived from the diversification strategy each have different anings. Horizontal diversification refers to enterprises using the original conditions provided by the market to produce new products that can et new user needs, thereby driving market consumption; vertical integration is where enterprises, according to their own developnt, vertically derive and penetrate their product industry chain into other market fields to seek new consurs; concentric diversification focuses more on the innovation of existing technologies, requiring the production of new products within the existing production range. The whole process is achieved through the tamorphosis of existing technology; comprehensive diversification focuses more on changes in the expansion of the business scope. Enterprises need to expand their business scope by linking raw materials and technologies related to their own products as well as market factors [5].
3. Impact of Diversification Strategy on the Performance of Gaming Companies
It can be said that in the operation process of all gaming companies, the impact of the diversification strategy on gaming company performance is uniformly divided into two parts: the change of operation mode and the transfer of strategic planning. The effects gradually erge from these two parts, driving the improvent 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 analyze and study the impact of the diversification strategy on gaming company performance [6].
(1) Change of Operation Mode
Currently, the main operation scope of Sanqi Mutual Entertainnt Ga Company is extrely broad. This is also relying on the advantages brought by the diversification strategy. The company's business not only involves the operation of interactive entertainnt but also fully undertakes the research and publication of mobile gas and web gas under Sanqi Mutual Entertainnt Ga Company. Moreover, in recent years, it has kept pace with the technology of the tis with continuous innovation, expanding the market to the layout of film and animations in the second dinsion. It is also shaping the market cultural industry chain belonging to Sanqi Mutual Entertainnt Ga Company in areas like music, VR technology, and various live streaming and other pan-entertainnt businesses.
In 1995, Sanqi Mutual Entertainnt Ga Company was established, but the developnt path during the early years was not smooth. The predecessor of Sanqi Mutual Entertainnt Ga Company was a small enterprise, and initially, Sanqi Mutual Entertainnt's industry chain did not involve the operation of entertainnt industries like gas, facing the risk of market absorption at any ti. However, relying on the steady developnt of a single industry, Sanqi Mutual Entertainnt Company got listed in 2011. But with poor operations in the later stages and a tightening market, Sanqi Mutual Entertainnt eventually could not escape the fate of being acquired.
In 2014, Wuhu Shunrong Auto Parts Co., Ltd. acquired 60% of Shanghai Sanqi Mutual Entertainnt Technology Co., Ltd.'s shares. Despite being acquired in na, for Sanqi Mutual Entertainnt, this was an opportunity for developnt worth seizing. The two companies completed the restructuring of assets in various industries through multi-party collaboration. It is worth ntioning that the strategy that Sanqi Mutual Entertainnt has always operated started to show its edge at this ti. Sanqi Mutual Entertainnt Company transford from a single modern cultural creative company prior to acquisition to a dual-main business listed company of advanced manufacturing and modern cultural creativity in parallel. Correspondingly, Sanqi Mutual Entertainnt's company operation strategies were also undergoing changes, and the business scope covered by the original cultural creative industry...
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