(Anti-theft, will be published later.) Abstract: With the progress of technology and the coverage pattern of intelligent networks, the rise of the ga industry in recent years has been evident to the public. The promotion thod of gas is no longer confined to rigid propaganda 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, and improve performance as the era develops rapidly. The diversification strategy perfectly ets the planning needs and developnt goals within the ga industry. In the context of economic globalization, the diversification strategy, as the preferred mode of corporate developnt, is also suitable for ga companies. This article 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
Diversification strategy is a market strategy ans adopted by enterprises during the operation process to occupy and explore new markets more. It is also a strategic plan used by enterprises to avoid risks encountered during the operation of a single business and to enter new fields of business with target and preparation. Applying the diversification strategy to ga companies can effectively improve company performance, bringing a process of transition from quantitative to qualitative changes for the developnt of ga companies.
1. Macro background of the diversification strategy
Entering 2021, under the effective control of the pandemic by the state, people's lives have returned to normal, and the economy and culture are showing a great recovery trend. 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 the level before the pandemic [1]. This is extrely advantageous news for the ga industry, which makes up a large proportion of the cultural industry. Although the pandemic did not cause much impact on the ga industry, the inability to carry out offline activities always affected the performance of ga companies. The warming of the cultural industry ans that the large-scale developnt and prosperity of the cultural industry can facilitate more ga companies to embark on a path of sustainable developnt [2].
From the outbreak of the pandemic last year to the current stability, the state has introduced relevant policies to support the developnt of the cultural industry from financial, institutional, and financial aspects. The pandemic blocked people's travel plans but couldn't control the spreading speed of the online network. More and more new dia appeared, driving the cultural industry's developnt during the pandemic prevention period. However, as each company wants to squeeze into the online market, the competitive environnt within the cultural industry is very fierce. Many traditional offline companies have been eliminated by society due to the pandemic's impact. Still, in these short two years, many cultural industries have successfully transford. These companies mostly relied on the diversification strategy model to accelerate transformation and upgrading, also gaining substantial rewards in the form of more varied developnt models and revenue channels during the pandemic prevention period when residents' consumption levels significantly increased. For instance, Sanqi Mutual Entertainnt Company's transformation during the pandemic control period is worth learning for most ga companies [3].
2. Analysis and classification of diversification strategy
(1) Analysis of diversification strategy
Diversification strategy was proposed by Igor Ansoff, the pioneer of strategic managent. In his book "Corporate Strategy," he ntioned the classification of diversification strategy. This world-influencing strategic model is involved in the managent policies of many countries, making every enterprise, large or small, seek a place to stand according to the developnt model of diversification strategy [4].
(2) Classification and implication of diversification strategy
Diversification strategy is divided into four types: horizontal diversification, vertical integration, concentric diversification, and conglorate diversification. The implicated anings derived from the four different models of diversification strategy vary. Horizontal diversification refers to the enterprise's use of market-provided original conditions to produce new products that can et new user needs, thus driving market consumption. Vertical integration is the enterprise's vertical derivation based on its developnt situation, using the product supply chain to penetrate other market fields to seek new consurs. Concentric diversification focuses more on innovation in original technology and requires the production of new products within the original production range. The whole process is achieved through the evolution of original technology. Conglorate diversification emphasizes expanding the scope of operations, requiring the enterprise to expand its operations by linking factors related to its products, such as raw materials, technology, and market [5].
3. Impact of diversification strategy on the performance of ga companies
It can be said that in the operation process of all ga companies, the impact of diversification strategy on company performance is uniformly divided into two parts: changes in operation mode and transfer of strategic planning. The changes in these two parts gradually generate effects that lead to improved 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 the impact of the diversification strategy on the performance of ga companies [6].
(1) Change in operation mode
Currently, Sanqi Mutual Entertainnt Ga Company's main operation range is quite extensive, relying on the advantages brought by the diversification strategy. The company not only involves the operation of interactive entertainnt but also independently oversees the R&D and publication of mobile and web gas. Recently, its developnt keeps pace with technology by constantly innovating, expanding the market to include layouts in film and two-dinsional animation, and shaping the market cultural industry chain for Sanqi Mutual Entertainnt Ga Company in music, VR technology, and various general entertainnt businesses like live streaming.
Sanqi Mutual Entertainnt Ga Company was established in 1995, but its early developnt path was not smooth. Originally a small enterprise, the company did not involve the operation of gas and other entertainnt industries in its industrial chain, always facing the risk of being swallowed by the market. However, with the steady developnt of a single industry, Sanqi Mutual Entertainnt Company was listed in 2011. Still, accompanied by poor operations and market contraction in later stages, Sanqi Mutual Entertainnt ultimately couldn't avoid the fate of being acquired.
In 2014, Wuhu Shunrong Auto Parts Co., Ltd. acquired 60% of Sanqi Mutual Entertainnt Shanghai Technology Co., Ltd.'s shares. Even though it was nominally acquired, for Sanqi Mutual Entertainnt, this was a developnt opportunity worth grasping. The two companies, through multi-faceted collaboration, completed the asset restructuring of various industries. It's worth ntioning that Sanqi Mutual Entertainnt had already begun to showcase its erging strategy. The company transford from a single modern cultural creative company before the acquisition to a listed company with dual main businesses of advanced production manufacturing and modern cultural creativity. Correspondingly, Sanqi Mutual Entertainnt's company operation strategy also underwent changes, and the business scope covered by the original cultural creative industry.
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