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(Anti-theft, to be released later.) Abstract: With the advancent of technology and the coverage model of intelligent networks, the rise of the gaming industry in recent years is evident to the public. Gas are no longer spread through stereotypical promotional thods, and their influence has gradually expanded to all aspects of life. Correspondingly, gaming companies need to continually integrate resources, innovate, and iterate to improve performance along with the rapid developnt of the tis. The diversification strategy precisely ets the planning needs and developnt goals within the gaming industry. In the context of economic globalization, the diversification strategy, as the first choice for enterprise developnt, is also applicable to gaming companies. This article uses Sanqi Mutual Entertainnt Company as an example to illustrate the impact of the diversification strategy on the performance of gaming companies.
Keywords: Diversification strategy; Gaming company; Performance; Impact; Sanqi Mutual Entertainnt
The diversification strategy is a market strategy adopted by enterprises during their operations to occupy more and explore new markets. It is also a strategic plan for companies to avoid the risks encountered during the operation of a single business and to enter new business fields with focus and preparation. Applying the diversification strategy to gaming companies can effectively improve company performance, bringing a transformation from quantitative to qualitative in the company's developnt.
1. The Macroeconomic Background of the Diversification Strategy
Entering 2021, under the effective control of the epidemic by the state, people's lives have returned to normal, and the economic culture presents a great trend of recovery. 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 returned to the pre-epidemic level [1]. This is very favorable news for the gaming industry, which accounts for a large proportion of the cultural industry. Although the arrival of the epidemic did not cause too much impact on the gaming industry, the inability to hold offline activities has always affected the performance of gaming companies. The warming up of the cultural industry signifies that the great developnt and prosperity of the cultural industry can promote more gaming companies to embark on the path of sustainable developnt [2].
From the outbreak of last year's epidemic to the current stabilization of the epidemic, the state has issued relevant policies to support the developnt of the cultural industry from multiple aspects, such as finance, system, and finance. Although the epidemic hindered people's travel, it could not control the speed of online network dissemination. More and more new dia appeared, driving the developnt of the cultural industry during the epidemic prevention and control period. However, because various enterprises all want to squeeze into the online market, the competitive environnt among the cultural industries is very fierce. Many traditional offline enterprises could not withstand the impact of the epidemic and were eliminated by society at this ti. But in these short two years, many successful transformations in the cultural industry have erged, and most of these companies rely on the diversification strategy model to accelerate transformation and upgrading. During the epidemic prevention and control period, when the level of residents' consumption increased significantly, they also gained a lot and obtained more diversified developnt models and channels of financial inco. For example, the transformation made by Sanqi Mutual Entertainnt during the epidemic prevention and control period is worth most gaming companies' reference [3].
2. A Brief Analysis and Classification of the Diversification Strategy
(1) A Brief Analysis of the Diversification Strategy
The diversification strategy was proposed by Igor Ansoff, the founder of strategic managent. In his book "Corporate Strategy," he ntioned the classification of diversification strategies. This strategic model, which influences the world, is involved in the managent policy guidelines of many countries, so much so that today every large and small enterprise seeks a place according to the developnt model of the diversification strategy [4].
(2) Classification and aning of Diversification Strategy
The diversification strategy is categorized into four types: horizontal diversification, vertical integration, concentric diversification, and conglorate diversification. The four different models derived from the diversification strategy have different anings. Horizontal diversification refers to enterprises utilizing the original market conditions to produce new products that can et new user needs, thereby driving market consumption; vertical integration refers to enterprises vertically deriving based on their developnt situation, using the product industry chain to penetrate other market fields to seek new consumption targets; concentric diversification emphasizes innovation in existing technologies, requiring the production of new products within the existing production range, and the entire process is realized through the transformation of existing technologies; conglorate diversification pays more attention to the expansion of operational scope changes, enterprises need to connect raw materials and technology related to their products and market and other factors to expand the scope of operations [5].
3. The Impact of Diversification Strategy on the Performance of Gaming Companies
It can be said that in the operation process of all gaming companies, the impact of the diversification strategy on the performance of gaming companies is uniformly divided into two parts: changes in operational models and the shift of strategic planning. From these two parts of change, effects gradually arise, driving the performance improvent of the company. The impact of the diversification strategy is multi-faceted. This paper will use Sanqi Mutual Entertainnt Ga Company as an example to analyze the impact of the diversification strategy on the performance of gaming companies [6].
(1) Changes in Operational Models
Currently, it seems that the main operational scope of Sanqi Mutual Entertainnt Ga Company is very extensive, which is also the advantage brought by the diversification strategy. The company's business not only involves the operation of interactive entertainnt, but it also exclusively oversees the research and developnt and distribution of mobile gas and web gas and has constantly innovated in recent years by keeping up with the tis and technology, expanding the market to layout films and animations in the ani subculture. It is also shaping the market cultural industry chain belonging to Sanqi Mutual Entertainnt Ga Company in music, VR technology, and various live broadcasts and other pan-entertainnt businesses.
Founded in 1995, Sanqi Mutual Entertainnt Ga Company did not have a smooth developnt path initially. The predecessor of Sanqi Mutual Entertainnt Ga Company was a small enterprise. Initially, the industry chain of Sanqi Mutual Entertainnt did not involve the operation of gas and other entertainnt industries, always facing the risk of being swallowed by the market. However, relying on the steady developnt of a single industry, Sanqi Mutual Entertainnt Company was listed in 2011. But accompanied by poor subsequent operations and market tightening, 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, this was a developnt opportunity worth seizing for Sanqi Mutual Entertainnt. The two companies completed asset restructuring in various industries under multi-faceted cooperation. It is worth ntioning that the strategy always operated by Sanqi Mutual Entertainnt began to show its brilliance at this ti. Sanqi Mutual Entertainnt Company transford from a single modern cultural and creative company before being acquired to a dual-core listed company of advanced manufacturing and modern cultural creativity running in parallel. Correspondingly, the company's operational strategy of Sanqi Mutual Entertainnt is also undergoing changes, and the scope of business covered by the original cultural and creative industry
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