(Anti-theft notice: will be posted later.) Abstract: With the advancent of technology and the coverage model of intelligent networks, the rise of the ga industry in recent years has been evident to the populace. The dissemination thod of gas is no longer confined to rigid promotional models, and the influence of gas has gradually expanded to all aspects of life. Correspondingly, ga companies need to continuously integrate resources, innovate, and update to improve performance in line with the rapid developnt of the tis. Diversification strategy aptly ets the planning requirents and developnt goals within the ga industry. In the context of economic globalization, diversification strategy, as a preferred mode of enterprise developnt, is also applicable to ga companies. This paper elaborates on the impact of diversification strategy on the performance of ga companies, taking Sanqi Mutual Entertainnt Company as an example.
Keywords: Diversification strategy; Ga company; Performance; Impact; Sanqi Mutual Entertainnt Company
Diversification strategy is a market strategy ans adopted by enterprises during operations to occupy more new markets and explore new markets. It is also a strategic planning adopted to avoid risks encountered in the operation of a single business by entering a new field of business with targets and preparation. Applying diversification strategy to ga companies can effectively enhance company performance, bringing about a process of quantitative to qualitative change in the developnt of ga companies.
1. Macroscopic Background of Diversification Strategy
Entering 2021, with the country's effective control over the pandemic, people's lives have resud normalcy, and the economy and culture are showing signs of recovery. On April 30, 2021, according to relevant data released by the National Bureau of Statistics, the developnt of the national cultural industry has basically returned to pre-pandemic levels[1]. This is very favorable news for the ga industry, which occupies a large proportion of the cultural industry. Although the arrival of the pandemic did not greatly affect the ga industry, the inability to conduct offline activities always impacted the performance of ga companies. With the recovery of the cultural industry, for most ga companies, this signifies that the great developnt and prosperity of the cultural industry can promote and lead more ga companies onto the path of sustainable developnt [2].
From last year's outbreak of the pandemic to the current stabilization, the country has issued relevant policies from various aspects, such as finance, systems, and finance, to support the developnt of the cultural industry. Although the pandemic has hindered people's travel, it cannot control the spread speed of online networks. The ergence of increasingly more new dia has driven the developnt of the cultural industry during the pandemic prevention period. However, as companies compete to enter the online market, the competitive environnt within the cultural industry is very fierce, and many traditional offline enterprises are unable to withstand the impact of the pandemic and are eliminated by society. In contrast, in just two years, many cultural industries have successfully transford. These companies mostly rely on the diversification strategy mode to accelerate transformation and upgrade, and during the pandemic prevention period with significantly improved consur consumption levels, they have also reaped considerable rewards, acquiring diversified developnt models and channels of financial inco. For example, the transformation carried out by Sanqi Mutual Entertainnt during the pandemic prevention period is worth emulating by most ga companies [3].
2. Brief Analysis and Classification of Diversification Strategy
(a) Brief Analysis of Diversification Strategy
Diversification strategy was proposed by the pioneer of strategic managent, Igor Ansoff. In his book "What is Corporate Strategy," he ntioned the classification of diversification strategy. This strategic model, which has influenced the world, is included in the managent policy of many countries, to the extent that today every enterprise, large or small, seeks a place following the developnt model of diversification strategy [4].
(b) Classification and aning of Diversification Strategy
Diversification strategy is divided into four types: horizontal diversification, vertical integration, concentric diversification, and conglorate diversification. The four different modes derived from diversification strategy have varied anings. Horizontal diversification refers to enterprises using the original conditions provided by the market to produce new products that et new user demands, thereby driving market consumption; Vertical integration is the vertical derivation of enterprises based on their developnt situation, using the product industry chain to penetrate other market fields to seek new consur targets; Concentric diversification focuses more on the innovation of the original technology, requiring the production of new products within the original production range, achieving transformation through the tamorphosis of original technology throughout the process; Conglorate diversification pays more attention to changes in the expansion of business scope. Enterprises need to expand their business scope by connecting the factors related to their products, raw materials, technologies, and markets [5].
3. Impact of Diversification Strategy on Ga Company Performance
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: changes in the operational model and the shift in strategic planning. The effects gradually generated from these two parts drive the enhancent of company performance. The impact brought by the diversification strategy is multifaceted. This paper will use 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 Model
Currently, the main operational scope of Sanqi Mutual Entertainnt Ga Company is very extensive, which is an advantage brought by the diversification strategy. The company's business not only involves the operation of interactive entertainnt but also singularly manages the developnt and distribution of mobile gas and web gas. Moreover, in recent years, it continues to innovate, keeping up with the technology of the tis, expanding the market to include the layout of film and animation ACG (Ani, Comics, and Gas), as well as shaping the market cultural industry chain belonging to Sanqi Mutual Entertainnt Ga Company in fields like music, VR technology, and various live streaming pan-entertainnt businesses.
Sanqi Mutual Entertainnt Ga Company was established in 1995, but its initial developnt journey 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 being engulfed by the market at any ti. However, independently relying on the steady developnt of a single industry, Sanqi Mutual Entertainnt company went public in 2011. But with subsequent poor operations and market contraction, Sanqi Mutual Entertainnt eventually 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 it was an acquisition, for Sanqi Mutual Entertainnt, this was a developnt opportunity worth seizing. Through multi-faceted collaboration between the two companies, they completed asset restructuring of various industries. It is worth ntioning that the operational strategy that Sanqi Mutual Entertainnt has consistently operated with was beginning to show its edge at this ti. Sanqi Mutual Entertainnt Company transford from a single modern cultural creative company before being acquired to a dual main-listed company that operates advanced production manufacturing alongside modern cultural creativity. Correspondingly, the company's operational strategy of Sanqi Mutual Entertainnt also underwent changes, with the scope of business covered by the original cultural creative industry.
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