(Anti-theft, to be published later.) Abstract: With the advancent of technology and the coverage model of intelligent networks, the rise of the gaming industry in recent years has been witnessed by the nation. The thods of ga dissemination are 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, and upgrade their performance with the rapid developnt of the tis. The diversification strategy aptly ets the planning needs and developntal goals within the gaming industry. In the context of economic globalization, diversification strategy, as the preferred mode of corporate developnt, equally applies to ga companies. This paper exemplifies the impact of diversification strategy on the performance of ga companies using Sanqi Mutual Entertainnt Company as a case study.
Keywords: Diversification Strategy; Ga Company; Performance; Impact; Sanqi Mutual Entertainnt Company
Diversification strategy is a market strategic approach taken by enterprises during operation to occupy new markets and explore new markets. It is also a strategic plan for companies to avoid risks encountered in operating a single business and to enter new business fields with targeted and prepared asures. Applying the diversification strategy practically in ga companies can effectively improve company performance, bringing about a process of transformation from quantitative to qualitative changes in the developnt of ga companies.
1. Macro Background of Diversification Strategy
Entering 2021, with the effective control of the pandemic by the state, people's lives have returned to normal, and the economy and culture are showing a promising recovery trend. On April 30, 2021, according to data released by the National Bureau of Statistics, the developnt of the national cultural industry has basically recovered to the level before the pandemic [1]. This is very favorable news for the gaming industry, which occupies a significant proportion of the cultural industry. Although the arrival of the pandemic has not severely impacted the gaming industry, the inability to conduct offline activities has always affected ga companies' performance. The warming of the cultural industry ans that for most ga companies, the grand developnt and prosperity of the cultural industry can promote and spur more ga companies onto the path of sustainable developnt [2].
From the outbreak of the pandemic last year to the current stabilization of the pandemic, the state has issued relevant policies from multiple aspects such as finance, institutions, and finance to support the developnt of the cultural industry. Although the pandemic has hindered people's travels, it cannot control the speed of online network dissemination. More and more new dia have erged, driving the developnt of the cultural industry during pandemic prevention. However, since every enterprise wants to squeeze into the online market, the competitive environnt within the cultural industry is very intense. Many traditional offline enterprises have been eliminated by society due to the pandemic impact at this ti. However, in these short two years, many cultural industries have successfully transford. These enterprises have mostly relied on a diversification strategy model to accelerate transformation and upgrading, gaining very successful results during the pandemic prevention period when residents' consumption levels significantly increased, and they have obtained more diversified developnt modes and inco channels. For example, the transformation made by Sanqi Mutual Entertainnt during the pandemic prevention period is worth emulating by most ga companies [3].
2. Brief Analysis and Categorization of Diversification Strategy
(1) Brief Analysis of Diversification Strategy
Diversification strategy was proposed by Igor Ansoff, the pioneer of strategic managent. In his book "Corporate Strategy," he ntioned the categorization of diversification strategy. This globally influential strategic model has been involved in the managent guidelines and policies of several countries, to the extent that today every enterprise, large or small, seeks a place according to the developnt model of a diversification strategy [4].
(2) Categorization and aning of Diversification Strategy
Diversification strategy is divided into four types: horizontal diversification, vertical integration, concentric diversification, and conglorate diversification. The four different modes derived from diversification strategy each have distinct anings. Horizontal diversification refers to companies using the original conditions provided by the market to produce new products that et users' new demands, thereby driving market consumption; vertical integration involves companies deriving vertically according to their developnt circumstances, utilizing the product industry chain to penetrate other market fields to seek new consurs; concentric diversification focuses more on innovation of existing technologies, requiring the production of new products within the original production scope, achieving the process through the transformation of original technologies; conglorate diversification places greater emphasis on expanding the scope of operations, requiring enterprises to connect with materials and technologies related to their products as well as market factors to expand the operational range [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 consistently divided into two parts: the change in the operational model and the shift in strategic planning. The effects gradually erge from these two parts of change, driving the performance improvent of companies. The impact brought by the diversification strategy is multi-faceted. This paper will take Sanqi Mutual Entertainnt Ga Company as an example to analyze and research the impact of diversification strategy on ga company performance [6].
(1) Change in Operational Model
Presently, the primary operational scope of Sanqi Mutual Entertainnt Ga Company is quite extensive, which is also due to the advantages brought by the diversification strategy. The company's business not only involves the operation of interactive entertainnt but also comprehensively covers the research and publication of mobile and web gas under Sanqi Mutual Entertainnt Ga Company. Additionally, in recent years, it has continuously innovated by keeping pace with modern technology, expanding the market to set up film and ani ACG. It also shapes the market's cultural industry chain belonging to Sanqi Mutual Entertainnt Ga Company in music and VR technology, as well as various live broadcast and pan-entertainnt businesses.
1995 marked the establishnt of Sanqi Mutual Entertainnt Ga Company, but the initial developnt path was not entirely smooth. The predecessor of Sanqi Mutual Entertainnt Ga Company was a small enterprise, and initially, the industrial chain of Sanqi Mutual Entertainnt did not involve the operation of gas and other entertainnt industries. There was always a risk of being swallowed by the market, but through steady developnt of a single industry, Sanqi Mutual Entertainnt Company was listed in 2011, but with subsequent poor operations and market contraction, Sanqi Mutual Entertainnt eventually did not escape the fate of acquisition.
In 2014, Wuhu Shunrong Auto Parts Co., Ltd. acquired 60% of the shares of Shanghai Sanqi Mutual Entertainnt Technology Co., Ltd. Although it was nominally acquired, for Sanqi Mutual Entertainnt, this was an opportunity worth seizing. The two companies completed various industrial asset restructurings through multi-sided cooperation. Notably, the operational strategy that Sanqi Mutual Entertainnt had always operated is beginning to show prominence; Sanqi Mutual Entertainnt Company transford from a single modern cultural creative company before the acquisition into a dual main business listed company of advanced production manufacturing and modern cultural creative coexistence, corresponding to the company's operational strategy changes, the forr business scope of cultural creative industry covered
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