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(Anti-theft, to be released later.) Abstract: With the advancent of technology and the coverage mode of intelligent networks, the rise of the gaming industry in recent years has been evident to the public. The dissemination thods of gas are no longer confined to rigid promotional models, and the influence of gas has gradually expanded to all aspects of life. Correspondingly, ga companies also need to continuously integrate resources, innovate and iterate, and improve performance with the rapid developnt of the tis. The diversification strategy perfectly aligns with the planning needs and developnt goals within the gaming industry. In the context of economic globalization, the diversification strategy, as the preferred mode for corporate developnt, is equally applicable to ga companies. This paper uses Sanqi Mutual Entertainnt Company as an example to explain the impact of diversification strategy on the performance of ga companies.
Keywords: Diversification strategy; Ga companies; Performance; Impact; Sanqi Mutual Entertainnt Company
Diversification strategy is a market strategic ans adopted by enterprises in their operation processes to capture more and explore new markets. It is also a strategic plan used by enterprises to avoid the risks encountered in operating a single business by entering new fields of business with targeted and prepared strategies. The practical application of diversification strategy to ga companies can effectively improve company performance and bring a qualitative change process to the developnt of ga companies.
1. The Macro Background of Diversification Strategy
Entering 2021, under the strong control of the epidemic by the state, people's lives have returned to normal, and the economic and cultural landscape has shown a favorable 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 the pre-epidemic level [1]. This is very good news for the gaming industry, which occupies a large proportion of the cultural industry. Although the arrival of the epidemic did not cause much impact on the gaming industry, the inability to conduct offline activities has always affected the performance of ga companies. The warming of the cultural industry ans that for most ga companies, the great developnt and prosperity of the cultural industry can promote more ga companies to embark on the path of sustainable developnt [2].
From the outbreak of last year's epidemic to the current stabilization, the state has issued relevant policies from multiple aspects such as finance, systems, and finance to support the developnt of the cultural industry. Although the epidemic has hindered people's travel, it cannot control the speed of online network dissemination. The ergence of more and more new dia during the epidemic prevention period has driven the developnt of the cultural industry. However, due to each enterprise wanting to enter the online market, the competitive environnt among the cultural industry is very fierce. Many traditional offline enterprises could not withstand the impact of the epidemic and were eliminated by society at this ti. However, in these short two years, many successfully transford cultural industries have erged, and most of these enterprises have accelerated transformation and upgrading by relying on the diversification strategy model. During the epidemic prevention period, when the level of resident consumption increased significantly, they also harvested a lot, obtaining more diversified developnt modes and channels for financial inco. For example, the transformation made by Sanqi Mutual Entertainnt Company during the epidemic prevention period is worth learning 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 pioneer of strategic managent. In his book "Corporate Strategy," he ntioned the classification of diversification strategies. This world-influencing strategic model is involved in the managent policies of many countries, so much so that today, enterprises large and small are seeking a place according to 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 overall diversification. The four different modes derived from diversification strategy have different anings: horizontal diversification refers to enterprises using the original conditions provided by the market to produce new products that can et new user demands, thereby driving market consumption; vertical integration is when enterprises, based on their developnt, derive vertically and penetrate into other market fields through the product industry chain to seek new consurs; concentric diversification focuses more on the innovation of existing technology and requires the production of new products within the original production scope, the whole process is achieved through the transformation of existing technology; overall diversification emphasizes the change of the scope of operation, requiring enterprises to expand their operation scope by connecting with factors related to their products, such as raw materials, technology, and market [5].
3. Impact of Diversification Strategy on the Performance of Ga Companies
In the operational process of all ga companies, the impact of diversification strategy on ga companies' performance is generally divided into two parts: the change of operation mode and the shift of strategic planning. The gradual effect of these two parts of the transformation drives the performance improvent of the company. The impact of diversification strategy is multifaceted. This paper will analyze and study the impact of diversification strategy on the performance of ga companies, taking Sanqi Mutual Entertainnt Ga Company as an example [6].
(1) Change of Operation Mode
Currently, Sanqi Mutual Entertainnt Ga Company has a very broad scope of operation, which is also the advantage brought by the diversification strategy. The company's business not only involves the operation of interactive entertainnt but also covers the developnt and distribution of mobile gas and web gas, which are handled entirely by Sanqi Mutual Entertainnt Ga Company. In recent years, the company has continuously innovated with the tis and expanded the market to the layout of film and television and ani secondary dinsions, and also shapes its market cultural industry chain in music, VR technology, and various live broadcasts and other pan-entertainnt businesses.
Sanqi Mutual Entertainnt Ga Company was established in 1995, but the early developnt path was not smooth. The predecessor of Sanqi Mutual Entertainnt Ga Company was a small enterprise, and at the beginning, the industry chain of Sanqi Mutual Entertainnt did not involve the operation of gas and other entertainnt industries, facing the risk of being rged by the market at any ti. However, relying on the steady developnt of a single industry, Sanqi Mutual Entertainnt Company went public in 2011. However, accompanying poor operation in the later stages and market contraction, Sanqi Mutual Entertainnt ultimately did not escape the fate of being acquired.
In 2014, Wuhu Shunrong Auto Parts Co., Ltd. acquired 60% of the equity of Shanghai Sanqi Mutual Entertainnt Technology Co., Ltd. Despite the acquisition in na, this was a developnt opportunity worth seizing for Sanqi Mutual Entertainnt. The two companies completed the asset restructuring of various industries under multi-party cooperation. It is worth ntioning that the strategy that Sanqi Mutual Entertainnt had always operated is now beginning to show signs of success. Sanqi Mutual Entertainnt Company transford from a single modern cultural creative company before the acquisition to a dual-main business listed company with advanced production manufacturing and modern cultural creative in parallel. Correspondingly, Sanqi Mutual Entertainnt's company operation strategy is also changing, and the business scope originally covered by the cultural creative industry changes.
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