(Anti-theft, will be sent at the ti.) Abstract: With the progress of technology and the coverage mode of intelligent networks, the recent rise of the gaming industry is evident to the public. The dissemination thods of gas are no longer limited to traditional promotional modes, and their influence is gradually expanding to all aspects of life. Correspondingly, gaming companies need to continuously integrate resources, innovate and 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, a diversification strategy, being the mode of choice for corporate developnt, is equally applicable to gaming companies. This article uses Sanqi Mutual Entertainnt Company as an example to explain 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 adopted by enterprises during the operational process to occupy new markets and explore new markets. It is also a strategic plan for enterprises to avoid risks encountered when operating a single business, by targeting and preparing to enter new areas of business. Effectively applying a diversification strategy in gaming companies can significantly improve company performance and bring about a transition from quantitative to qualitative change for the developnt of gaming companies.
1. Macroeconomic background of diversification strategy
Entering 2021, with strong national control of the pandemic, people's lives are back on track, and the economy and culture are showing a promising recovery trend. On April 30, 2021, according to data announced by the National Bureau of Statistics, the developnt of the cultural industry nationwide basically returned to pre-pandemic levels[1]. This is very favorable news for the gaming industry, which holds a substantial proportion within the cultural industry. Although the pandemic did not greatly affect the gaming industry, the inability to conduct offline activities always affects the performance of gaming companies. With the culture industry's warming, it ans for most gaming companies that the great developnt and prosperity of the cultural industry can stimulate and promote more gaming companies to embark on a path of sustainable developnt[2].
Since last year's outbreak of the pandemic to the current pandemic stability, the nation has issued related policies from various aspects like finance, systems, and finance to support the developnt of the cultural industry. Although the pandemic has hindered people's travel, it cannot control the speed of online network dissemination. More and more new dia erged during the pandemic control period, driving the developnt of the cultural industry. However, due to various enterprises wanting to squeeze into the online market, the competitive environnt within the cultural industry is extrely fierce. Many traditional offline enterprises succumbed to the impact of the pandemic and were eliminated from society. But in these short two years, many successfully transford cultural industries erged. These enterprises mostly relied on the diversification strategy model to accelerate transformation and upgrade, and similarly reaped benefits during the epidemic prevention period when resident consumption levels significantly increased, obtaining more diversified developnt modes and revenue channels. For example, the transformation made by Sanqi Mutual Entertainnt Company during the epidemic prevention period is worth learning from by most gaming companies[3].
2. Brief analysis and classification of diversification strategy
(1) Brief analysis of diversification strategy
The diversification strategy was proposed by the founder of strategic managent, Igor Ansoff. In his book "What is Corporate Strategy," he ntioned the classification of diversification strategy. This strategically influential mode is involved in the managent guidelines and policies of multiple countries, so much so that every enterprise, large or small, seeks a place according to the developnt mode of diversification strategy today[4].
(2) Classification and aning of diversification strategy
Diversification strategy is divided into four types: horizontal diversification, vertical integration, concentric diversification, and overall diversification. The anings of the four different modes derived from diversification strategy are also different. 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 when enterprises, based on their developnt situation, vertically derive and utilize the product industry chain to penetrate other market fields to seek new consur targets. Concentric diversification focuses more on innovation of existing technologies and requires producing new products within the existing production range. The whole process is achieved through the transformation of existing technologies. Overall diversification emphasizes expanding the range of operations, and enterprises need to contact factors such as raw materials and technologies related to their products, as well as the market, to achieve expansion of the operation range[5].
3. Impact of diversification strategy on gaming company performance
It can be said that in the operation process of all gaming companies, the impact of diversification strategy on gaming company performance is uniformly divided into two parts: change in the operation model and shift in strategic planning. The transformation of these two parts gradually produces effects, driving the improvent of company performance. The impact brought by diversification strategy is multifaceted. This paper will take Sanqi Mutual Entertainnt Ga Company as an example to analyze and research the impact of diversification strategy on gaming company performance[6].
(1) Change in the operation model
Currently, the main operation scope of Sanqi Mutual Entertainnt Ga Company is quite extensive, which is also due to the advantages brought by diversification strategy. The company not only involves the operation of interactive entertainnt, but also fully handles the research and issuance of mobile gas and web gas under the na of Sanqi Mutual Entertainnt Ga Company. Moreover, in recent years of developnt, keeping pace with the tis in technology and continuous innovation, it has expanded the market to include layout in film, animation, and ACG (Ani, Comic and Gas), and also shaped the market culture industry chain of Sanqi Mutual Entertainnt Ga Company in music, VR technology, various live broadcasts, and other pan-entertainnt businesses.
Sanqi Mutual Entertainnt Ga Company was established in 1995, but the early developnt path was not smooth. The predecessor of Sanqi Mutual Entertainnt Ga Company was a small enterprise, and initially, the industry chain of Sanqi Mutual Entertainnt did not involve the operation of the ga and other entertainnt sectors, always at 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. But due to poor subsequent operations and market contraction, Sanqi Mutual Entertainnt ultimately did not escape the fate of being acquired.
In 2014, Wuhu Shunrong Auto Parts Co., Ltd. acquired Shanghai Sanqi Mutual Entertainnt Technology Co., Ltd. with sixty percent of the equity, though nominally acquired, for Sanqi Mutual Entertainnt, this was a developntal opportunity worth grasping. The two companies completed asset restructuring of various industries under multi-party cooperation. It is worth ntioning that the strategic operation of Sanqi Mutual Entertainnt that it has always operated had begun to show its edge at this ti. Sanqi Mutual Entertainnt Company transford from a single modern cultural creative company before the acquisition into today's advanced production manufacturing and modern cultural creativity as parallel dual main businesses listed company. Correspondingly, the operating strategy of Sanqi Mutual Entertainnt Company is also undergoing changes, the business scope covered by original cultural creative industries.
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