(Anti-theft, will send when the ti cos.) Abstract: With the advancent of technology and the coverage model of intelligent networks, 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 progressively expanded into various aspects of life. Correspondingly, ga companies need to continuously integrate resources, innovate, and improve performance to keep up with the rapid developnt of the tis. Diversification strategy perfectly aligns with the planning needs and developnt goals within the gaming industry. In the context of economic globalization, diversification strategy, as the preferred mode of developnt for enterprises, also applies to ga companies. This article uses Sanqi Mutual Entertainnt Company as an example to elucidate the impact of diversification strategy on the performance of gaming 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 new markets and expand into new markets. It is also the strategic planning adopted by enterprises to avoid risks encountered in the operation of a single business by entering new business fields with focus and preparation. Implenting diversification strategy in ga companies can effectively improve company performance and bring about a transformation from quantitative to qualitative change in the developnt of ga companies.
1. Macroscopic background of diversification strategy
Entering 2021, with the country's effective control of the pandemic, people's lives have returned to normal, and the economic and cultural landscape presents a great revival situation. 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 pre-pandemic level [1]. This is extrely favorable news for the gaming industry, which occupies a significant proportion of the cultural industry. Although the pandemic did not greatly affect the gaming industry, the inability to conduct offline activities has always impacted the performance of ga companies. The warming of the cultural industry ans, for most ga companies, the large-scale developnt and prosperity of the cultural industry can promote more ga companies to step onto the path of sustainable developnt [2].
From last year's outbreak to the current stabilization of the pandemic, the country has issued policies supporting the developnt of the cultural industry from multiple aspects such as finance, system, and finance. Although the pandemic has stalled people's travel, it cannot control the speed of online network dissemination. More and more new dia are erging, driving the developnt of the cultural industry during pandemic prevention. However, because every company wants to squeeze into the online market, the competitive environnt within the cultural industry is 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 period, many successful transformation cultural industries have erged, and these enterprises mostly relied on diversification strategy mode to accelerate transformation and upgrade. During the pandemic prevention period, when residential consumption levels significantly increased, they also gained a lucrative harvest, acquiring more diverse developnt modes and channels for fund inco. For example, the transformation made by Sanqi Mutual Entertainnt Company during the pandemic prevention period is worth learning from for most gaming companies [3].
2. Analysis and classification of diversification strategy
(A) Simplified analysis of diversification strategy
Diversification strategy was proposed by Igor Ansoff, the pioneer of strategic managent. In his book "What is Business Strategy," he ntioned the classification of diversification strategy. This world-influencing strategic mode is involved in the managent policies of multiple countries, so much so that today every large and small enterprise is seeking a place by following the developnt mode of diversification strategy [4].
(B) Classification of diversification strategy and its aning
There are four types of diversification strategy: horizontal diversification, vertical integration, concentric diversification, and holistic diversification. The four different modes derived from diversification strategy also have different anings. Horizontal diversification refers to the production of new products that can et new user needs by utilizing the original conditions provided by the market, thereby driving market consumption; vertical integration is the vertical derivation according to the company's own developnt situation, penetrating into other market fields within the product industry chain to seek new consur targets; concentric diversification focuses more on the innovation of existing technology, requiring the production of new products within the original production scope, realizing the process through the transformation of existing technology; holistic diversification focuses more on expanding the scope of business change. Enterprises need to connect factors such as raw materials and technology related to their products and the market to expand the scope of business [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 the performance of ga companies is uniformly divided into two parts: the change of operation mode and the shift of strategic planning. The transformation from these two parts gradually produces effects that drive the enhancent of company performance. The influence brought by diversification strategy is multifaceted. This paper will take Sanqi Mutual Entertainnt Ga Company as an example to analyze and study the impact of diversification strategy on the performance of ga companies [6].
(1) Change in operation mode
As of now, the main operating scope of Sanqi Mutual Entertainnt Ga Company is quite extensive, which is also due to the advantages brought by diversification strategy. The company not only involves the operation of interactive entertainnt, but also handles the research and developnt and distribution of mobile gas and web gas under the Sanqi Mutual Entertainnt Ga Company banner. Furthermore, in recent developnt, it has continuously innovated by keeping pace with contemporary technology, expanding the market to include film and animation ACG (Ani, Comics, and Gas) layout. It is also shaping the market cultural industry chain belonging to Sanqi Mutual Entertainnt Ga Company in music, VR technology, and various live streaming and other pan-entertainnt businesses.
The Sanqi Mutual Entertainnt Ga Company was founded in 1995, but the initial developnt path was not smooth. The predecessor of Sanqi Mutual Entertainnt Ga Company was a small enterprise; initially, the industry chain of Sanqi Mutual Entertainnt did not involve the operation of ga and other entertainnt industries, and there was always the risk of being swallowed up by the market. However, relying on the steady developnt of a single industry, Sanqi Mutual Entertainnt Company was listed in 2011. Yet, with subsequent poor operation and market contraction, Sanqi Mutual Entertainnt eventually did not escape the fate of acquisition.
In 2014, Wuhu Shunrong Auto Parts Co., Ltd. acquired Shanghai Sanqi Mutual Entertainnt Technology Co., Ltd. with sixty percent equity. Although nominally acquired, for Sanqi Mutual Entertainnt, this was an opportunity worth grasping. The two companies completed the asset restructuring of various industries through multi-faceted collaboration. It is worth ntioning that the strategy operated by Sanqi Mutual Entertainnt has shown early signs of success; Sanqi Mutual Entertainnt Company transford from a single modern cultural creativity company before the acquisition to a dual main business listed company where advanced production manufacturing and modern cultural creativity run parallel. Correspondingly, the company's operating strategy of Sanqi Mutual Entertainnt also underwent changes, and the scope of business activities covered by the original cultural creativity industry.
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