(Anti-theft, will be sent later.) Abstract: With the advancent of technology and the coverage model of intelligent networks, the rise of the ga industry in recent years is evident to the public. The traditional promotion model of gas is no longer rigid, and the influence of gas has gradually expanded to various aspects of life. Correspondingly, ga companies also need to continuously integrate resources, innovate, and iterate to improve performance in sync with the rapid developnt of the tis. A diversification strategy perfectly caters to the planning needs and developnt goals within the ga industry. In the context of economic globalization, the diversification strategy is also applicable to ga companies as the preferred model for enterprise developnt. This article 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 strategy ans adopted by companies during operation to occupy and develop new markets and is also a strategic plan for companies to avoid risks encountered by operating a single business by specifically and proactively entering new business fields. Applying a diversification strategy in gaming companies can effectively improve company performance, bringing about a transition from quantitative to qualitative change in the developnt of the company.
1. The macro background of the diversification strategy
Entering 2021, under the effective control of the epidemic by the state, people's lives are getting back on track, and the economy and culture are showing a great 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 pre-epidemic levels[1]. This is very favorable news for the ga industry, which constitutes a significant portion of the cultural sector. Although the arrival of the epidemic did not greatly affect the ga industry, the inability to conduct offline activities has always impacted ga companies' performance. With the cultural industry's recovery, for most ga companies, this ans the substantial developnt and prosperity of the cultural industry can promote more ga companies to embark on a path of sustainable developnt[2].
From last year's outbreak of the epidemic to the current stabilization, the country has promulgated relevant policies from various aspects like finance, systems, and finance to support the developnt of the cultural industry. Although the epidemic 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 epidemic prevention period; however, since enterprises are all trying to squeeze into the online market, competition within the cultural industry is extrely fierce. Many traditional offline enterprises could not withstand the impact of the epidemic and were eliminated by society, but many successful transformations in the cultural industry have erged in these short two years. These enterprises mostly rely on a diversified strategic model to accelerate transformation and upgrade, achieving substantial results during the epidemic prevention period of significantly increasing consur levels and acquiring more diversified developnt models and inco channels. For instance, the transformation made by Sanqi Mutual Entertainnt during the epidemic prevention period is worth learning from by most ga companies[3].
2. Brief analysis and classification of the diversification strategy
(a) Brief analysis of the diversification strategy
Diversification strategy was proposed by the pioneer of strategic managent, Igor Ansoff, in his book "Corporate Strategy" where he ntioned the classification of diversification strategy. This globally influential strategic model is involved in managent policy guidelines in multiple countries, so much so that today every large and small enterprise is seeking a place according to the developnt model of diversification strategy[4].
(b) Classification and aning of the diversification strategy
There are four types of diversification strategies: horizontal diversification, vertical integration, concentric diversification, and conglorate diversification. The different strategic models derived from the diversification strategy have distinct anings. Horizontal diversification refers to enterprises using the raw conditions provided by the market to produce new products that et new user demands, thereby driving market consumption. Vertical integration is the vertical derivation by enterprises based on their developnt status, utilizing the product industry's value chain to penetrate other market areas seeking new consurs. Concentric diversification focuses more on the innovation of existing technology and requires the production of new products within the existing production scope, achieving the whole process through the transformation of existing technology. In contrast, conglorate diversification emphasizes the expansion and change of the business scope more, requiring enterprises to expand their business scope by connecting factors like raw materials, technology, and markets related to their products[5].
3. The impact of diversification strategy on the performance of ga companies
It can be said that in the operation of all ga companies, the impact of diversification strategy on the performance of ga companies is uniformly divided into two parts: the change in operation mode and the transfer of strategic planning. From these two parts, the effects gradually erge, driving the performance improvent of the company. The impact brought by diversification strategy is multifaceted. This paper will analyze and study the impact of diversification strategy on the performance of ga companies using Sanqi Mutual Entertainnt Ga Company as an example[6].
(1) Change in the mode of operation
At present, the main operation scope of Sanqi Mutual Entertainnt Ga Company is very extensive, which is also due to the advantages brought by the diversification strategy. The company's business not only involves interactive entertainnt operations but also encompasses the research, developnt, and distribution of mobile and web gas under the Sanqi Mutual Entertainnt Ga Company. Moreover, in recent developnts, following the technological advancents of the tis, the market has been expanded to the layout of film and television as well as ani subculture. It is also shaping its cultural industry chain in music, VR technology, and various types of live entertainnt, forming a market culture industry chain belonging to the Sanqi Mutual Entertainnt Ga Company.
Established in 1995, Sanqi Mutual Entertainnt Ga Company didn't have a smooth path in the early stages of developnt. Its predecessor was a small enterprise, initially not including the operation of ga and entertainnt industries in its industry chain, always at risk of being annexed by the market. However, relying on the steady developnt of a single industry, Sanqi Mutual Entertainnt Company listed in 2011. But with poor managent and market contraction in later operations, Sanqi Mutual Entertainnt ultimately did not escape 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 grasping. The two companies completed the asset reorganization of various industries through multi-party cooperation. It is worth ntioning that the strategic deploynt operated by Sanqi Mutual Entertainnt has already begun to shine at this ti. Sanqi Mutual Entertainnt Company transford from a single modern cultural creative company before acquisition into a dual-main business listed company with advanced production manufacturing and modern cultural creativity running parallel in its current state, with corresponding changes occurring in the company's operational strategy, alongside the business scope covered by the original cultural creative industry.
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