(Anti-theft asure, to be released later.) Abstract: With the progress of technology and the coverage model of intelligent networks, the rise of the gaming industry in recent years has been evident to the public. The propagation thods of gas are no longer confined to rigid promotional modes, and the influence of gas has gradually expanded into all aspects of life. Correspondingly, gaming companies need to continuously integrate resources, innovate and update, and improve performance to keep pace with the rapid developnt of the tis. A diversification strategy perfectly aligns with the planning needs and developnt goals within the gaming industry. Under the backdrop of economic globalization, a diversification strategy, as a preferred model for enterprise developnt, is equally applicable to gaming companies. This article explains the impact of a diversification strategy on the performance of gaming companies, using Sanqi Mutual Entertainnt Company as a case study.
Keywords: Diversification strategy; Gaming companies; Performance; Impact; Sanqi Mutual Entertainnt Company
A diversification strategy is a market strategy thod adopted by enterprises in the operational process to occupy more new markets and explore new markets. It is also a strategic planning approach utilized by enterprises to avoid the risks encountered in operating a single business, by entering new business fields deliberately and preparedly. Applying a diversification strategy to gaming companies can effectively improve company performance, leading to a transition from quantitative to qualitative developnt for the gaming companies.
1. Macroeconomic Background of Diversification Strategy
Stepping into 2021, under the effective control of the pandemic by the governnt, people's lives returned to normal, and the economic and cultural landscapes showed great signs of recovery. On April 30, 2021, according to the relevant data published by the National Bureau of Statistics, the developnt of the national cultural industry basically returned to pre-pandemic levels [1]. This is very favorable news for the gaming industry, which holds a significant proportion within the cultural industry. Although the pandemic did not cause substantial impact to the gaming industry, the inability to hold offline activities still affected the performance of gaming companies. The warming up of the cultural industry signifies for most gaming companies that the major developnt and prosperity of the cultural industry can spur more gaming companies to embark on a path of sustainable developnt [2].
From the outbreak of the pandemic last year to the current state of stabilization, the governnt has issued relevant policies from various aspects such as finance, institutions, and banking to support the developnt of the cultural industry. Although the pandemic has hindered people's travel, it could not control the spreading speed of online networks. More and more new dia have erged, promoting the developnt of the cultural industry during the pandemic prevention period. However, because every enterprise wishes to squeeze into the online market, competition in the cultural industry has beco extrely fierce. Many traditional offline enterprises have been eliminated by society under the influence of the pandemic, but in just two short years, many successful cultural industry transformations have also erged. Most of these enterprises have relied on the diversification strategy model to accelerate their transformation and upgrade, and they have also harvested significant gains during the pandemic prevention period when the residents' consumption levels have increased significantly, gaining more diversified developnt models and inco channels, for example, the transformation made by Sanqi Mutual Entertainnt during the pandemic prevention period is worth imitation by most gaming companies [3].
2. Brief Analysis and Classification of Diversification Strategy
(1) Brief Analysis of Diversification Strategy
Diversification strategy was proposed by the father of strategic managent, Igor Ansoff. In his book "Corporate Strategy," the classification of diversification strategies was ntioned. This globally influential strategic model has been involved in managent policies and guidelines in many countries, so much so that today, every enterprise, large or small, is seeking a place based on the diversification strategy developnt model [4].
(2) Classification and aning of Diversification Strategy
The diversification strategy is divided into four types: horizontal diversification, vertical integration, concentric diversification, and overall diversification. The four different modal anings derived from diversification strategy also vary. Horizontal diversification refers to enterprises using the original conditions provided by the market to produce new products that can et new user needs, thereby driving market consumption; vertical integration is where enterprises derive vertically according to their developnt conditions, infiltrating into other market areas with the product industry chain to seek new consurs; concentric diversification focuses more on innovation of existing technology, needing to produce new products within the original production range, achieving transformation through technical evolution; overall diversification focuses more on expanding the scope of business changes, requiring enterprises to connect with factors such as raw materials, technology related to their products, and the market to expand the business scope [5].
3. The Impact of Diversification Strategy on Gaming Companies' Performance
In the operational process of all gaming companies, it can be said that the impact of diversification strategy on the performance of gaming companies is uniformly divided into two parts: changes in operating models and shifts in strategic planning. The impact brought by the diversification strategy is multifaceted. This paper will use Sanqi Mutual Entertainnt Ga Company as an example to analyze the impact of diversification strategy on the performance of gaming companies [6].
(1) Changes in Operating Models
At present, the main operational scope of Sanqi Mutual Entertainnt Ga Company is extrely broad, which is precisely the advantage brought by diversification strategy. The company's business not only involves the operation of interactive entertainnt, but Sanqi Mutual Entertainnt Ga Company also handles the developnt and distribution of mobile gas and web gas. In recent developnts, it has continuously innovated in line with the technology of the tis, expanding the market layout to fields such as film, animation, and the secondary dinsion. It is also shaping its market cultural industry chain in music, VR technology, and various live broadcast 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 initially, the industry chain of Sanqi Mutual Entertainnt did not involve the operation of gas and other entertainnt industries, facing the risk of market annexation at any ti. However, by relying on the steady developnt of a single industry, Sanqi Mutual Entertainnt Company went public in 2011. But with poor operation in the later stages and market contraction, Sanqi Mutual Entertainnt eventually could not avoid being acquired.
In 2014, Wuhu Shunrong Auto Parts Co., Ltd. acquired Sanqi Mutual Entertainnt Technology Co., Ltd. with 60% equity. Although nominally acquired, for Sanqi Mutual Entertainnt, this was an opportunity worth grasping. The two companies completed the asset restructuring of various industries under multi-faceted cooperation. It is worth noting that the exhibition strategy continuously pursued by Sanqi Mutual Entertainnt has begun to show promise at this point. Sanqi Mutual Entertainnt Company transford from a single modern cultural creativity company before the acquisition into a listed company with dual main businesses of advanced manufacturing and contemporary cultural creativity. Correspondingly, the corporate operation strategy of Sanqi Mutual Entertainnt also underwent changes, with the original cultural creativity industry encompassing a business scope
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