(Anti-theft, will post at that ti.) Abstract: With the advancent of technology and the coverage of intelligent networks, the ergence of the gaming industry in recent years has been evident to the public. The dissemination thods of gas are no longer restricted to rigid promotional models, and the influence of gas has gradually expanded to all aspects of life. Correspondingly, ga companies need to continually integrate resources, innovate and iterate, and improve performance to keep pace with rapid developnts. The diversification strategy perfectly aligns with the planning needs and developnt goals within the gaming industry. Against the backdrop of economic globalization, diversification strategy as the primary choice for enterprise developnt is equally applicable to ga companies. This article uses the example of Sanqi Mutual Entertainnt Company to illustrate the impact of diversification strategy on ga company performance.
Keywords: Diversification strategy; Ga company; Performance; Impact; Sanqi Mutual Entertainnt Company
Diversification strategy is a market strategy tool adopted by enterprises in their operations to occupy new markets and explore new market opportunities. It is also a strategic plan used by enterprises to avoid risks encountered during single business operations by targeted and prepared entry into new business fields. The practical application of diversification strategy in ga companies can effectively improve company performance, bringing about a qualitative change in the developnt of ga companies.
1. The macro background of diversification strategy
Entering 2021, under the strong control of the state over the pandemic, people's lives have returned to normal, and the economy and culture have shown a great recovery trend. On April 30, 2021, according to the relevant data released by the National Bureau of Statistics, the developnt of the national cultural industry has basically recovered to pre-pandemic levels [1]. This is very favorable news for the gaming industry, which occupies a large share in the cultural industry. Although the arrival of the pandemic did not have a significant impact on the gaming industry, the inability to conduct offline activities always affects the performance of ga companies. The recovery of the cultural industry ans that for most ga companies, this symbolizes that the great developnt and prosperity of the cultural industry can promote and lead more ga companies to continuous developnt [2].
From last year's pandemic outbreak to the current stable situation, the country has issued various policies from fiscal, institutional, financial, and other aspects to support the developnt of the cultural industry. Although the pandemic has blocked people's travel, it cannot control the speed of online network dissemination. More and more new dia have erged, driving the developnt of the cultural industry during the pandemic prevention period. However, as companies strive to penetrate the online market, the competition environnt within the cultural industry has beco extrely fierce, and many traditional offline companies could not withstand the impact of the pandemic and were eliminated by society. However, in this brief two-year period, many successfully transford cultural industries have also erged, and these companies largely rely on diversification strategy models to accelerate transformation and upgrades, reaping significant benefits during the pandemic prevention period marked by a significant increase in residents' consumption levels, gaining more diversified developnt models and revenue channels, such as the transformation made by Sanqi Mutual Entertainnt Company during the pandemic 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 founder of strategic managent, Igor Ansoff. In his book "Corporate Strategy" he discussed the classification of diversification strategy. This world-influencing strategic model is covered in the managent policies of multiple countries, so today every enterprise, big or small, is seeking a place by adopting this diversification strategy developnt model [4].
(b) Classification and aning of diversification strategy
There are four types of diversification strategy in total: horizontal diversification, vertical integration, concentric diversification, and conglorate diversification. The anings of these four distinct modes derived from diversification strategy vary significantly. Horizontal diversification refers to enterprises utilizing the original conditions provided by the market to produce new products that et new user needs, thus driving market consumption. Vertical integration involves enterprises deriving vertically based on their own developnt situation, using product industry chains to penetrate into other market fields and seek new consumption targets. Concentric diversification focuses more on the innovation of existing technology, requiring the production of new products within the original production range, with the entire process realized through the transformation of existing technology. Conglorate diversification emphasizes expanding the range of operations and changes, where enterprises must connect factors related to their products, such as raw materials, technology, and markets, to expand their business scope [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 ga company performance is uniformly divided into two parts: change in operational modes and strategic planning transfer. The transformation from these two parts gradually generates effects that enhance company performance. The impact 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 ga company performance [6].
(1) Change in operational modes
Currently, Sanqi Mutual Entertainnt Ga Company's main operational scope is very extensive, which relies on the advantages brought by diversification strategy. The company's business not only involves the operation of interactive entertainnt but also independently undertakes the research, developnt, and distribution of mobile gas and web gas under Sanqi Mutual Entertainnt Ga Company. Moreover, in recent years it has constantly innovated by keeping up with technological advancents, expanding the market to include layouts in film, ani, and second-dinsion areas. The company also shapes its cultural industry chain belonging to Sanqi Mutual Entertainnt Ga Company within music, VR technology, and various live streaming and other pan-entertainnt businesses.
Established in 1995, Sanqi Mutual Entertainnt Ga Company's developnt road was not smooth initially. The predecessor of Sanqi Mutual Entertainnt Ga Company was a small-sized enterprise, and its industrial chain originally did not involve the operation of gas and other entertainnt industries, always facing the risk of market annexation. However, relying on the steady developnt of a single industry, Sanqi Mutual Entertainnt Company got listed in 2011. Yet, accompanied by poor post-period operation and market contraction, Sanqi Mutual Entertainnt did not eventually escape the fate of being acquired.
In 2014, Wuhu Shunrong Auto Parts Co., Ltd. acquired Shanghai Sanqi Mutual Entertainnt Technology Co., Ltd. with sixty percent of the equity. Despite being nominally acquired, for Sanqi Mutual Entertainnt this was an opportunity worth seizing. The two companies completed asset restructuring of various industries through multi-party collaboration. It is worth ntioning that at this ti, the strategic rule consistently operated by Sanqi Mutual Entertainnt was already beginning to flourish. Sanqi Mutual Entertainnt Company transford from a single modern cultural creative company before acquisition to a dual-main business listed company combining advanced production manufacturing and modern cultural creation. Correspondingly, the company's operational strategy also underwent changes, with the business scope covered by the original cultural creative industry...
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