(Anti-theft, will be released at the ti.) Abstract: Accompanied by the advancent of technology and smart network coverage, the rise of the ga industry in recent years has been apparent 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 various aspects of life. Correspondingly, ga companies need to continuously integrate resources, innovate, iterate, and improve performance along with the rapid developnt of the tis. A diversification strategy fits well with the planning needs and developnt goals within the ga industry. Against the backdrop of economic globalization, the diversification strategy as the preferred developnt model for enterprises is equally applicable to ga companies. This article uses Sanqi Mutual Entertainnt Company as an example to explain the impact of diversification strategies on the performance of ga companies.
Keywords: Diversification strategy; Ga company; Performance; Impact; Sanqi Mutual Entertainnt
Diversification strategy is a market strategy ans employed by enterprises in the operating process to claim and expand new markets. It also helps enterprises to avoid risks encountered during the operation of a single business by strategically and preparedly entering new business domains. Applying a diversification strategy effectively to ga companies can significantly enhance company performance and bring about a qualitative change from a quantitative one in the developnt of ga companies.
1. Macroscopic Background of Diversification Strategy
Entering 2021, with the effective control of the epidemic, people's lives have returned to normal, and economy and culture have shown a thriving recovery situation. On April 30, 2021, according to relevant data released by the National Bureau of Statistics, the national cultural industry has basically returned to pre-epidemic levels [1]. This is very favorable news for the ga industry, which holds a large proportion in the cultural industry. Although the epidemic did not cause significant impact to the ga industry, the inability to carry out offline activities has always affected the performance of ga companies. Through the warming of the cultural industry, for most ga companies, this ans the great developnt and prosperity of the cultural industry can promote more ga companies to embark on the path of continuous developnt [2].
From last year's outbreak to the present stability of the epidemic, the country has issued relevant policies from fiscal, institutional, financial and other aspects to support the developnt of the cultural industry. Although the epidemic has blocked people's steps of going out, it cannot control the speed of online network propagation. More and more new dia have erged, promoting the developnt of the cultural industry during epidemic prevention, but due to various enterprises wanting to squeeze into the online market, the competitive environnt among cultural industries is very fierce. Many traditional offline enterprises could not withstand the impact of the epidemic and were eliminated by society at this ti, but many successfully transford cultural industries also erged during this short two-year ti. These enterprises mostly accelerated transformation and upgrading relying on the diversification strategy mode, and equally harvested abundant results during the epidemic prevention period when residents' consumption levels significantly improved, obtaining more diverse developnt modes and funding inco channels. For example, the transformation made by Sanqi Mutual Entertainnt during the epidemic prevention period is worth learning from for most ga companies [3].
2. Brief Analysis and Classification of Diversification Strategy
(a) Brief Analysis of Diversification Strategy
Diversification strategy was proposed by the founding father of strategic managent, Igor Ansoff. In his work "What is Corporate Strategy," he ntioned the classification of diversification strategies. This world-influencing strategic model is involved in the managent policies of multiple countries, resulting in every enterprise, large or small, today seeking a position according to the developnt model of diversification strategy [4].
(b) Classification and aning of Diversification Strategy
Diversification strategy is divided into four types: horizontal diversification, vertical integration, concentric diversification, and overall diversification. The anings derived from these four different modes of diversification strategy are also different. Horizontal diversification refers to the enterprise using the original conditions provided by the market to produce new products that et new user needs, thereby driving market consumption; vertical integration is the enterprise vertically deriving based on its own developnt situation, using the product industry chain to penetrate into other market domains to seek new consurs; concentric diversification focuses more on innovation of existing technology, requiring new product production within the existing production scope, achieving through the transformation of existing technology; overall diversification pays more attention to changes in the scope of operation expansion, enterprises need to connect factors such as raw materials and technology related to their own products and the market to expand the scope of operation [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 diversification strategy on ga company performance is uniformly divided into two parts: the change in operating mode and the transfer of strategic planning. These changes gradually produce effects that drive the improvent of company performance. The impact brought by diversification strategy is multifaceted. This paper will analyze and study the impact of diversification strategy on ga company performance using Sanqi Mutual Entertainnt Ga Company as an example [6].
(1) Change in Operating Mode
Currently, the main operating scope of Sanqi Mutual Entertainnt Ga Company is very broad, which is also reliant on the advantages brought by diversification strategy. The company's business covers not only interactive entertainnt operations but also independently undertakes the developnt and distribution of mobile gas and web gas under Sanqi Mutual Entertainnt Ga Company. In recent years, following technological advancents to continuously innovate, the market has broadened its horizons to layout film and animation, and also shapes Sanqi Mutual Entertainnt Ga Company's market cultural industry chain in various area-based entertainnt businesses such as music, VR technology, and various live broadcasts.
Sanqi Mutual Entertainnt Ga Company was established in 1995, but the early developnt path was not smooth sailing. Sanqi Mutual Entertainnt Ga Company's predecessor was a small enterprise, and initially, Sanqi Mutual Entertainnt's industrial chain did not involve the operation of gas and entertainnt industries, always faced with the risk of being swallowed by the market. Depending on the steady developnt of a single industry, Sanqi Mutual Entertainnt Company was listed in 2011, but with poor post-operation and market contraction, Sanqi Mutual Entertainnt eventually could not escape the fate of acquisition.
In 2014, Wuhu Shunrong Auto Parts Co., Ltd. acquired a 60% stake in Shanghai Sanqi Mutual Entertainnt Technology Co., Ltd. Although nominally acquired, for Sanqi Mutual Entertainnt this was a favorable developnt opportunity. Through multi-faceted collaboration between the two companies, they completed asset restructuring of various industries. It is worth ntioning that the exhibition strategy which Sanqi Mutual Entertainnt has always operated is already erging, from a single modern cultural creative company before acquisition, Sanqi Mutual Entertainnt Company has transford into a now double main business listed company advancing production manufacturing and modern cultural creativity side by side. Correspondingly, the company operating strategy of Sanqi Mutual Entertainnt is also undergoing changes, the business scope covered by the original cultural creative industry.
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