(Anti-theft, release when due.) Summary: With the advancent of technology and the coverage model of intelligent networks, the rise of the gaming industry in recent years has been evident to the public. The way gas are spread has moved beyond 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 in line with the rapid developnt of the tis. A diversification strategy aptly ets the planning needs and developnt goals within the gaming industry. Against the backdrop of economic globalization, diversification strategy, as the preferred model for corporate developnt, is also applicable to gaming companies. This paper uses Sanqi Mutual Entertainnt Company as an example to illustrate the impact of diversification strategy on the performance of gaming companies.
Keywords: Diversification strategy; Gaming company; Performance; Impact; Sanqi Mutual Entertainnt Company
Diversification strategy is a market strategy thod employed by companies during operations to occupy and explore new markets more effectively. It is also a strategic plan adopted to avoid risks encountered in operating a single business, allowing targeted and prepared entry into new business fields. Applying diversification strategy practically to gaming companies can effectively enhance company performance, bringing about a transition from quantitative 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 return to normal, presenting a great picture of economic and cultural recovery. On April 30, 2021, according to data released by the National Bureau of Statistics, the developnt of the cultural industry nationwide has basically returned to pre-pandemic levels[1]. For the gaming industry, which accounts for a significant proportion of the cultural industry, this is very good news. Although the pandemic did not significantly impact the gaming industry, the inability to hold offline activities always affected the performance of gaming companies. The recovery of the cultural industry ans that for most gaming companies, the substantial developnt and prosperity of the cultural industry can promote and drive more gaming companies to embark on a path of sustainable developnt[2].
From the outbreak of the pandemic last year to the current stabilization, the state has promulgated relevant policies supporting the developnt of the cultural industry from multiple aspects such as finance, institutions, and finance. Although the pandemic hindered people's travel, it could not control the spread speed of online networks. The ergence of more new dia led to the developnt of the cultural industry during the pandemic prevention period. However, the fierce competition environnt within the cultural industry resulted from each company wanting to enter the online market. Many traditional offline enterprises could not withstand the impact of the pandemic and were eliminated by society. In this short span of two years, many successfully transford cultural industries erged, and these enterprises mostly relied on the diversification strategy model to accelerate transformation and upgrading, and during the pandemic prevention period, when residents' consumption levels significantly increased, they also gained substantial benefits, obtaining more diversified developnt models and inco channels. For instance, the transformation undertaken by Sanqi Mutual Entertainnt Company during the pandemic prevention period is worthy of emulation by most gaming companies[3].
2. Brief Analysis and Classification of Diversification Strategy
(a) Brief Analysis of Diversification Strategy
Diversification strategy was proposed by Igor Ansoff, the originator of strategic managent. In his book "Corporate Strategy," he ntioned the classification of diversification strategies. This world-influencing strategic model has been involved in the managent policies of multiple countries, leading to every enterprise, large or small, seeking a place according to the diversification strategy's developnt model[4].
(b) Classification and aning of Diversification Strategy
The diversification strategy is divided into four types: horizontal diversification, vertical integration, concentric diversification, and conglorate diversification. The anings of these four different modes derived from diversification strategy vary as well. Horizontal diversification refers to enterprises using the original conditions provided by the market to produce new products eting new user demands, thereby driving market consumption. Vertical integration is the enterprise vertically deriving according to its developnt situation, penetrating other market fields through the product industry chain to seek new consur targets. Concentric diversification focuses more on innovating existing technology, requiring the production of new products within the existing production scope, realizing the transformation through the tamorphosis of the original technology. Conglorate diversification emphasizes expansion of the business scope, requiring enterprises to connect with factors like raw materials, technology, and market related to their products to expand the business scope[5].
3. Impact of Diversification Strategy on Gaming Companies' Performance
It can be said that during the operation of all gaming companies, the impact of diversification strategy on gaming companies' performance is uniformly divided into two parts: the change of operating models and the shift of strategic planning. The transformations in these two parts gradually generate effects that drive the enhancent of company performance. The impact brought by diversification strategy is multifaceted. This paper will use Sanqi Mutual Entertainnt Ga Company as an example to analyze and study the impact of diversification strategy on gaming companies' performance[6].
(1) Change of Operating Models
Currently, the main operating scope of Sanqi Mutual Entertainnt Ga Company is very extensive, which is also due to the advantages brought by diversification strategy. The company's business not only involves the operation of interactive entertainnt, but Sanqi Mutual Entertainnt Ga Company also undertakes the developnt and distribution of mobile gas and web gas. In recent years, following the trend of technological advancents, it has constantly innovated and extended the market to layouts in film and ani, and has also shaped the market cultural industry chain belonging to Sanqi Mutual Entertainnt Ga Company in music, VR technology, and various live broadcast activities and other pan-entertainnt businesses.
In 1995, Sanqi Mutual Entertainnt Company was established, but the initial developnt path was not smooth. The predecessor of Sanqi Mutual Entertainnt Company was a small-scale enterprise and initially its industry chain did not involve the operation of gas and other entertainnt industries, with the risk of being swallowed by the market always looming. But relying on the steady developnt of a single industry, Sanqi Mutual Entertainnt Company was listed in 2011. However, with subsequent poor operations and market contraction, Sanqi Mutual Entertainnt Company ultimately did not escape the fate of being acquired.
In 2014, Wuhu Shunrong Auto Parts Co., Ltd. acquired 60% equity of Shanghai Sanqi Mutual Entertainnt Technology Co., Ltd. Although officially acquired, for Sanqi Mutual Entertainnt Company, this was a developnt opportunity worth seizing. Through multiple cooperation, the two companies completed the asset restructuring of various industries. It is worth noting that the exhibition strategy always operated by Sanqi Mutual Entertainnt Company was already showing initial promise at this ti. Sanqi Mutual Entertainnt Company transford from a single modern cultural creative company before the acquisition to now a dual-industry listed company with advanced production manufacturing and modern cultural creativity running parallel, corresponding with changes in the company's operating strategy. The scope of business covered by the original cultural creative industry...
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