(Prevent theft, will release at the right ti.) Abstract: With the advancent of technology and the coverage model of the smart network, the rise of the gaming industry in recent years is evident to the public. The dissemination thod of gas is 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 as the era rapidly evolves. A diversification strategy perfectly caters to the planning needs and developnt goals within the gaming industry. Against the backdrop of economic globalization, the diversification strategy as the preferred mode of enterprise developnt is also applicable to ga companies. This paper uses Sanqi Mutual Entertainnt Company as an example to explain the impact of the diversification strategy on the performance of ga companies.
Keywords: Diversification strategy; Ga company; Performance; Impact; Sanqi Mutual Entertainnt Company
The diversification strategy is a market strategy thod adopted by enterprises to occupy and develop new markets to avoid risks encountered in operating a single business. It is a strategic plan for targeted and prepared entry into new business areas. Applying the diversification strategy to ga companies can effectively improve company performance, bringing a process of quantitative to qualitative change in the developnt of ga companies.
1. Macro Background of Diversification Strategy
Stepping into 2021, under the country's strong control of the pandemic, people's lives returned to normal, and the economy and culture showed a promising recovery. On April 30, 2021, data released by the National Bureau of Statistics showed that the national cultural industry developnt had basically recovered to pre-pandemic levels[1]. This is very favorable news for the gaming industry, which holds a large share in the cultural industry. Although the pandemic did not greatly impact the gaming industry, the inability to conduct offline activities has always affected ga company performance. With the warming of the cultural industry, this ans, for most ga companies, that the great developnt and prosperity of the cultural industry can promote and drive more ga companies onto the path of sustainable developnt[2].
From the outbreak of the pandemic last year to the current stability, the country has issued relevant policies from various aspects such as finance, regulations, and finance to support the developnt of the cultural industry. Though the pandemic halted people's travel, it couldn't control the speed of online network dissemination. More and more new dia appeared, driving the developnt of the cultural industry during the pandemic prevention period. But because each company wants to squeeze into the online market, the competitive environnt within the cultural industry has beco intense. Many traditional offline enterprises couldn't withstand the pandemic's impact and were eliminated by society. However, in these two short years, many successfully transford cultural industries have erged, mostly relying on the diversification strategy model to accelerate transformation and upgrading, and during the pandemic prevention period, when residents' consumption levels significantly increased, they also reaped considerable benefits, gaining more diverse developnt models and sources of inco. For example, Sanqi Mutual Entertainnt Company's transformation during the pandemic prevention period is worth referencing for most ga companies[3].
2. Brief Analysis and Classification of Diversification Strategy
(1) Brief Analysis of Diversification Strategy
The diversification strategy was proposed by Igor Ansoff, the father of strategic managent. In his book "Corporate Strategy," he ntioned the classification of diversification strategies. This globally influential strategic model is involved in managent policies in many countries, so much so that today every large and small enterprise is seeking a place for itself following the developnt model of a diversification strategy[4].
(2) Classification and Implication of Diversification Strategy
The diversification strategy is divided into four types: horizontal diversification, vertical integration, concentric diversification, and conglorate diversification. The four different models derived from the diversification strategy have distinct anings. Horizontal diversification refers to an enterprise using the original conditions provided by the market to produce new products that et new user needs, thereby driving market consumption. Vertical integration involves an enterprise deriving vertically based on its developnt status, using the product industry chain to penetrate other market fields seeking new consur targets. Concentric diversification emphasizes innovation in existing technology, requiring new product production within the existing production scope, and the entire process is achieved through the tamorphosis of existing technology. Conglorate diversification focuses more on expanding the business scope, requiring enterprises to connect related raw materials, technology, and market factors with their products to expand the business scope[5].
3. Impact of Diversification Strategy on Ga Company Performance
It can be said that in the operation process of all ga companies, the impact of the diversification strategy on ga company performance is uniformly divided into two parts: changes in the operation model and shifts in strategic planning. These two parts gradually produce effects, driving the improvent of company performance. The impact of the diversification strategy is multifaceted. This paper will take Sanqi Mutual Entertainnt Ga Company as an example to analyze and research the impact of the diversification strategy on ga company performance[6].
(1) Change in Operation Model
At present, the main operating scope of Sanqi Mutual Entertainnt Ga Company is very extensive. This is also the advantage brought by the diversification strategy. The company's business is not only involved in interactive entertainnt operations; Sanqi Mutual Entertainnt Ga Company also fully undertakes the research and publication of mobile gas and web gas. In recent developnts, it continues to innovate in line with the tis and technology, expanding the market to include film and television and ani second dinsions, and also creates its market cultural industry chain in music, VR technology, and various live broadcasts and other pan-entertainnt businesses.
Sanqi Mutual Entertainnt Ga Company was established in 1995, but the developnt path in the early stages was not smooth. Sanqi Mutual Entertainnt Ga Company's predecessor was a small enterprise. Initially, Sanqi Mutual Entertainnt's industry chain did not involve the operation of gas and other entertainnt industries, always at risk of being absorbed by the market. However, relying on the steady developnt of a single industry, Sanqi Mutual Entertainnt Company went public in 2011. But accompanied by poor operation and market contraction in the later stages, Sanqi Mutual Entertainnt ultimately did not escape the fate of being acquired.
In 2014, Wuhu Shunrong Auto Parts Co., Ltd. acquired Sanqi Mutual Entertainnt Technology Co., Ltd. with 60% equity. Although ostensibly acquired, this was a developnt opportunity worth seizing for Sanqi Mutual Entertainnt. The two companies completed the asset restructuring of various industries through multi-party cooperation. It is worth ntioning that the strategy that Sanqi Mutual Entertainnt has always operated on began to show promise at this ti. The company transford from a single modern cultural creative company before the acquisition to a dual-main business listed company with advanced manufacturing and modern cultural creativity in parallel. Correspondingly, Sanqi Mutual Entertainnt's company operation strategy is also undergoing changes; the business scope covered by the original cultural creative industry...
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