(Anti-theft, will release in due ti.) Abstract: With the advancent of technology and the coverage model of smart networks, the rise of the gaming industry in recent years has been evident to the citizens. The traditional modes of ga promotion have evolved, with gas influencing various aspects of life. Correspondingly, ga companies need to continuously integrate resources and innovate with rapid societal developnt to enhance performance. A diversification strategy perfectly aligns with the planning needs and developnt objectives within the gaming industry. In the context of economic globalization, diversification strategy, as the primary model for corporate developnt, is also applicable to ga companies. This article takes Sanqi Mutual Entertainnt Company as an example to elucidate the impact of 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 used by enterprises during operation to capture new markets and enter new business fields with preparation, aiming to avoid risks encountered in operating a single business. Applying diversification strategy to ga companies can effectively enhance company performance, bringing about a transformation from quantitative to qualitative change in the developnt of ga companies.
1. The Macroeconomic Background of Diversification Strategy
In 2021, under effective national control of the pandemic, people's lives have returned to normalcy, and the economic and cultural sectors present a favorable recovery situation. On April 30, 2021, data released by the National Bureau of Statistics revealed that the developnt of the cultural industry nationwide had basically returned to pre-pandemic levels[1]. This is highly beneficial news for the gaming industry, which holds a significant proportion of the cultural industry. Although the pandemic did not greatly impact the gaming industry, the inability to conduct offline activities has always affected ga companies' performance. The revival of the cultural industry ans that the great developnt and prosperity of the cultural industry can lead more ga companies to a path of sustainable developnt[2].
From the outbreak of last year's pandemic to the current stabilization, the country has issued policies supporting cultural industry developnt in terms of finance, regulations, and finance. While the pandemic hindered people's travel, it could not control the spread speed of online networks. The ergence of more new dia drove cultural industry developnt during the pandemic control period. However, the competitive environnt in the cultural industry beca intense as enterprises rushed to enter the online market. Many traditional offline enterprises could not withstand the pandemic impact and were phased out, but within these short two years, many cultural industries successfully transford. These enterprises largely relied on the diversification strategy mode to accelerate transformation and upgrading, achieving remarkable results with more diversified developnt models and inco channels during the pandemic control period, where consur spending levels significantly increased. Sanqi Mutual Entertainnt Company's efforts in transformation during the pandemic are a worthy reference for most ga companies[3].
2. Brief Analysis and Classification of Diversification Strategy
(1) Brief Analysis of Diversification Strategy
Diversification strategy, proposed by the forefather of strategic managent, Igor Ansoff, is ntioned in his book "Corporate Strategy," covering its classifications. This influential strategic mode has been included in managent policy guidelines in multiple countries, resulting in enterprises, big or small, pursuing a place by following the diversification strategy developnt mode today[4].
(2) Classification and Significance of Diversification Strategy
Diversification strategy is categorized into four types: horizontal diversification, vertical integration, concentric diversification, and conglorate diversification. These four modes derived from diversification strategy each have different anings. Horizontal diversification refers to enterprises leveraging the original market conditions to produce new products eting consurs' new demands, thus driving market consumption. Vertical integration involves enterprises branching vertically based on their developnt to seek new consurs by infiltrating other market areas through the product supply chain. Concentric diversification focuses more on technological innovation within the existing production range to produce new products, achieving this through the tamorphosis of existing technology. Conglorate diversification emphasizes expanding operational scope, requiring enterprises to expand by connecting factors related to their products, such as raw materials, technology, and markets[5].
3. The Impact of Diversification Strategy on Ga Company Performance
In the operation process of all ga companies, the impact of diversification strategy on their performance is divided into two parts: changes in operating modes and shifts in strategic planning. These changes gradually take effect in enhancing company performance. The impact of diversification strategy is multifaceted. This paper will analyze the impact of diversification strategy on the performance of ga companies, using Sanqi Mutual Entertainnt Ga Company as an example[6].
(1) Change in Operating Modes
Currently, the operational scope of Sanqi Mutual Entertainnt Ga Company is very extensive, which is an advantage brought by the diversification strategy. The company not only involves interactive entertainnt operations but also handles the developnt and distribution of mobile and web gas. In the recent developnts, keeping pace with technological advancent, it has expanded its market to include film and television, ani, music, VR technology, and various live broadcast businesses, creating its market culture industry chain in the entertainnt sector.
In 1995, when Sanqi Mutual Entertainnt Ga Company was founded, its developnt path was not all smooth. The company's predecessor was a small enterprise, initially without involvent in operating gas and entertainnt industries. There was always a risk of being swallowed by the market. However, through stable developnt of a single industry, Sanqi Mutual Entertainnt Company went public in 2011. Yet, with poor subsequent operation and market contraction, Sanqi Mutual Entertainnt could not escape acquisition.
In 2014, Wuhu Shunrong Auto Parts Co., Ltd. acquired Shanghai Sanqi Mutual Entertainnt Technology Co., Ltd. with a 60% equity stake. Although nominally acquired, this was a developnt opportunity worth seizing for Sanqi Mutual Entertainnt. With extensive cooperation, the two companies completed various industrial asset restructurings. Notably, Sanqi Mutual Entertainnt's operational strategy, which had been gradually erging, was initially evident. Sanqi Mutual Entertainnt Company transford from a single modern cultural creativity company before acquisition into a dual-primary listed company with advanced manufacturing and modern cultural creativity running parallel. The company's operational strategy also changed correspondingly, with previously covered business ranges in the cultural creative industry.
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