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(Anti-theft, will send it when the ti cos.) Summary: With the advancent of technology and the coverage model of smart networks, the rise of the ga industry in recent years has been apparent to the public. The mode of spreading gas is no longer confined to rigid promotional thods, and the influence of gas has gradually expanded to all aspects of life. Correspondingly, ga companies also need to continuously integrate resources, innovate, and improve performance with the rapid developnt of the era. A diversification strategy precisely caters to the planning needs and developnt goals within the ga industry. In the context of economic globalization, a diversification strategy, as a model of choice for enterprise developnt, is equally applicable to ga companies. This article uses Sanqi Mutual Entertainnt Company as an example to explain the impact of diversification strategy on the performance of ga companies.
Keywords: Diversification strategy; Ga company; Performance; Impact; Sanqi Mutual Entertainnt Company
A diversification strategy is a market strategy used by enterprises during their operations to conquer new markets and expand into new markets. It is also a strategic planning thod that enterprises adopt to avoid risks encountered when operating a single business by strategically entering new business fields. Applying a diversification strategy to ga companies can effectively improve company performance and bring a transformation from quantitative change to qualitative change in the company's developnt.
1. The macro background of diversification strategy
Entering 2021, under the strong control of the pandemic by the state, people's lives are back on track, and the economy and culture are showing a positive 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 returned to the pre-pandemic level[1]. This is very favorable news for the ga industry, which holds a large proportion within the cultural industry. Although the pandemic has not significantly impacted the ga industry, the inability to conduct offline activities has always affected the ga companies' performance. The warming of the cultural industry ans that for most ga companies, the developnt and prosperity of the cultural industry can promote more ga companies to embark on the road of sustainable developnt[2].
From the outbreak of the epidemic last year to the current stabilization, the state has introduced relevant policies from multiple aspects such as finance, system, 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. The ergence of more and more new dia promotes the developnt of the cultural industry during the pandemic prevention and control period. However, as every company wants to enter the online market, the competition environnt within the cultural industry has beco extrely fierce. Many traditional offline enterprises could not withstand the impact of the pandemic and were eliminated by society, yet in this short two-year span, many successfully transford cultural industries have also erged. Most of these companies accelerated transformation and upgrading by relying on the diversification strategy model, and during the pandemic prevention and control period when consumption levels of residents rose significantly, they also yielded substantial returns, gaining more diverse developnt modes and revenue channels. For instance, the transformation of Sanqi Mutual Entertainnt during the pandemic prevention and control period is worth emulating by most ga companies[3].
2. Brief analysis and classification of diversification strategy
(a) Brief analysis of diversification strategy
The diversification strategy was proposed by the father of strategic managent, Igor Ansoff. In his book "Corporate Strategy," he ntioned the classification of diversification strategies. This world-influencing strategic model has been involved in the policy fraworks of multiple countries' managent guidelines, so much so that today, enterprises of all sizes are striving for a place following the developnt mode of a 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 conglorate diversification. The four different modes derived from diversification strategy also have different anings: horizontal diversification refers to producing new products that can et users' new needs using the original conditions provided by the market, thus driving market consumption; vertical integration refers to enterprises vertically deriving based on their own developnt situations, using product industry chains to infiltrate other market fields to seek new consumption objects; concentric diversification focuses more on the innovation of original technology, requiring the production of new products within the original production range, realizing the process through the tamorphosis of original technology; conglorate diversification emphasizes expanding the scope of operations, requires enterprises to expand their scope by connecting with raw materials, technology, and market factors related to their own products[5].
3. The impact of diversification strategy on the performance of ga companies
It can be said that in the operations of all ga companies, the impact of diversification strategy on company performance is divided into two parts: the change of operation mode and the shift of strategic planning. The effects gradually generated from these two parts drive the improvent of company performance. The impact brought by diversification strategy is multi-faceted. This paper will analyze and study the impact of diversification strategy on the performance of ga companies, using Sanqi Mutual Entertainnt Ga Company as an example[6].
(1) Changes in operation mode
Currently, the main operational scope of Sanqi Mutual Entertainnt Ga Company is quite extensive, which is also the advantage brought by the diversification strategy. The company's business not only involves the operation of interactive entertainnt, but it also fully undertakes the R&D and distribution of mobile gas and web gas, and in recent years, keeping up with the tis, innovates constantly. It has expanded the market to include film and ani post-production and is shaping the market cultural industry chain of Sanqi Mutual Entertainnt Ga Company within genres like music, VR technology, and various live broadcasts, among other pan-entertainnt businesses.
In 1995, Sanqi Mutual Entertainnt Ga Company was founded, but in the initial stage of developnt, it was not all plain sailing. The predecessor of Sanqi Mutual Entertainnt Ga Company was a small enterprise. Initially, the industrial chain of Sanqi Mutual Entertainnt did not involve the operation of ga and other entertainnt industries, always facing the risk of being annexed by the market. However, relying on the steady developnt of a single industry, Sanqi Mutual Entertainnt Company went public in 2011, but with poor managent and market contraction in the later period, Sanqi Mutual Entertainnt ultimately could 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 it was acquired in na, for Sanqi Mutual Entertainnt, it was an opportunity worth seizing. The two companies completed the asset restructuring of various industries through multi-party collaboration. It is worth ntioning that the strategy that Sanqi Mutual Entertainnt has always operated in showed its brilliance at this ti. Sanqi Mutual Entertainnt Company transford from a single modern cultural creativity company before the acquisition to a current dual-main-business listed company integrating advanced manufacturing and modern cultural creativity. Correspondingly, Sanqi Mutual Entertainnt's corporate operational strategy also underwent changes, and the business coverage of the original cultural creative industry was...
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