(Anti-theft, will be sent later.) Abstract: Accompanied by the advancent of technology and the coverage model of intelligent networks, the rise of the ga industry in recent years is evident to everyone. The dissemination thods of gas are no longer limited to rigid promotional models, and the influence of gas has gradually expanded to all aspects of life. Correspondingly, ga companies need to continuously integrate resources, innovate iterations, and improve performance in line with the rapid developnt of the tis. The diversification strategy perfectly caters to the planning needs and developnt goals within the ga industry. Under the backdrop of economic globalization, diversification strategy as the preferred mode of enterprise developnt is equally applicable to ga companies. This article explains the impact of diversification strategy on the performance of ga companies using Sanqi Mutual Entertainnt Company as an example.
Keywords: Diversification strategy; Ga companies; Performance; Impact; Sanqi Mutual Entertainnt Company
Diversification strategy is a market strategy tool adopted by enterprises in the process of operation to capture a larger share of new markets and develop new markets. It is also a strategic planning adopted to avoid the risks encountered in operating a single business and systematically enter new business fields. Applying diversification strategy to ga companies can effectively improve company performance, bringing about a process of transformation from quantitative change to qualitative change in the developnt of ga companies.
1. Macro Background of Diversification Strategy
Entering 2021, with the strong control of the pandemic by the country, people's lives have returned to normal, and economic culture is also showing a great recovery trend. On April 30, 2021, according to the data released by the National Bureau of Statistics, the developnt of the national cultural industry basically recovered to the pre-pandemic level [1]. This is very favorable news for the ga industry, which accounts for a large proportion of the cultural industry. Although the arrival of the pandemic did not cause great impact on the ga industry, the inability to conduct offline activities has always affected the performance of ga companies. With the recovery of the cultural industry, for most ga companies, this ans that the great developnt and prosperity of the cultural industry can promote and drive more ga companies onto the path of sustainable developnt [2].
Since the outbreak of last year's pandemic to the current stable situation, the country has introduced relevant policies from fiscal, institutional, financial, and other aspects to support the developnt of the cultural industry. Although the pandemic has hindered people from traveling, it cannot control the speed of online network dissemination. The ergence of more and more new dia has driven the developnt of the cultural industry during the pandemic prevention and control period. However, since enterprises all want to enter the online market, the competitive environnt within the cultural industry has beco very fierce. During this ti, many traditional offline enterprises could not withstand the impact of the pandemic and were eliminated by society. However, within these two short years, many successfully transford cultural industries have erged. Most of these enterprises rely on diversification strategy models to accelerate transformation and upgrade, and during the pandemic prevention and control period when residents' consumption levels have significantly increased, they also achieved substantial gains, obtaining diversified developnt models and funding channels, such as the transformation made by Sanqi Mutual Entertainnt Company during the pandemic prevention and control period, which is worth following by most ga companies [3].
2. Brief Analysis and Classification of Diversification Strategy
(1) Brief Analysis of Diversification Strategy
Diversification strategy was proposed by Igor Ansoff, the father of strategic managent. In his book "Corporate Strategy: An Analytical Approach to Business Policy for Growth and Expansion," he ntioned the classification of diversification strategy. This world-influencing strategic model is involved in the managent guidelines and policies of multiple countries, so today every enterprise, large and small, is seeking a position following the developnt model of diversification strategy [4].
(2) Classification and aning of Diversification Strategy
Diversification strategy is divided into four types: horizontal diversification, vertical integration, concentric diversification, and conglorate diversification. The four different models derived from diversification strategy have distinct anings. Horizontal diversification refers to enterprises utilizing the original conditions provided by the market to produce new products that et new user needs, which in turn drives market consumption. Vertical integration is when enterprises vertically derive according to their own developnt situations, utilizing the product industry chain to penetrate other market fields to seek new consur targets. Concentric diversification pays more attention to innovation of existing technologies, requiring production of new products within the original production range, and the whole process is realized through the transformation of existing technologies. Conglorate diversification pays more attention to the expansion of the range of operations, requiring enterprises to connect factors such as raw materials and technologies related to their own products and the market to expand the range of operations [5].
3. The Impact of Diversification Strategy on Ga Companies' Performance
It can be said that in the operation process of all ga companies, the impact of diversification strategy on ga companies' performance is uniformly divided into two parts: changes in operating modes and shifts in strategic planning. From these two parts of change, the effect gradually arises to drive the performance improvent of companies. The impact brought by diversification strategy is multi-faceted. This paper will analyze and study the impact of diversification strategy on ga companies' performance using Sanqi Mutual Entertainnt Ga Company as an example [6].
(1) Changes in Operating Modes
Currently, the main operating scope of Sanqi Mutual Entertainnt Ga Company is very broad. This is also reliant on the advantages brought by the diversification strategy. The company's business involves not only the operation of interactive entertainnt but also the research and developnt and distribution of mobile gas and webpage gas under Sanqi Mutual Entertainnt Ga Company. In recent years, it has followed the technology of the tis and constantly innovated to widen the market to include film and animation second-dinsional setups, and also shapes Sanqi Mutual Entertainnt Ga Company's market cultural industry chain in music, VR technology, and various live broadcast and other pan-entertainnt businesses.
Sanqi Mutual Entertainnt Ga Company was founded in 1995, but the developnt path in the early stage was not smooth. Sanqi Mutual Entertainnt Ga Company's predecessor was a small enterprise, and initially, the industry chain of Sanqi Mutual Entertainnt did not involve the operation of the ga and other entertainnt industries, with the constant risk of being rged by the market. However, relying on the steady developnt of a single industry, Sanqi Mutual Entertainnt Company was listed in 2011. However, accompanied by poor operation and market contraction in later stages, Sanqi Mutual Entertainnt ultimately had not escaped the fate of being acquired.
In 2014, Wuhu Shunrong Auto Parts Co., Ltd. acquired 60% of the shares of Shanghai Sanqi Mutual Entertainnt Technology Co., Ltd. Although nominally acquired, for Sanqi Mutual Entertainnt, this was an opportunity worth seizing for developnt. The two companies completed asset restructuring of various industries through multi-party collaboration. It is worth ntioning that the strategy operated by Sanqi Mutual Entertainnt has already begun to show its edge. Sanqi Mutual Entertainnt Company transitioned from a single modern cultural creativity company before being acquired to today's advanced manufacturing and modern cultural creativity parallel dual main business listed company. Correspondingly, the company's operational strategy of Sanqi Mutual Entertainnt also underwent change, with the business scope covered by the previous cultural creativity industry.
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