(Anti-theft, will be posted later.) Abstract: With the progression of technology and the coverage model of the intelligent network, the rise of the gaming industry in recent years has been evident to the public. The dissemination of gas no longer confines itself to rigid promotional modes, and the influence of gas is gradually expanding to all aspects of life. Correspondingly, ga companies must continually integrate resources, innovate, update, and improve performance amid the rapid developnt of the era. The diversification strategy perfectly aligns with the planning needs and developntal goals within the gaming industry. In the background of economic globalization, the diversification strategy, as the preferred developnt mode for enterprises, is equally applicable to ga companies. This article uses Sanqi Mutual Entertainnt Company as an example to elucidate the impact of diversification strategy on the performance of ga companies.
Keywords: Diversification strategy; Ga company; Performance; Impact; Sanqi Mutual Entertainnt Company
The diversification strategy is a market strategic approach companies use to occupy more new markets and explore new markets; it is also a strategic plan that enterprises adopt to evade risks encountered during the operation of a single business by entering new business fields with targeted preparation. Applying the diversification strategy to a ga company can effectively improve company performance and bring a transformation from quantitative to qualitative changes in the ga company's developnt.
1. The Macrosocial Background of the Diversification Strategy
Entering the year 2021, under the effective control of the pandemic by the nation, people's lives have returned to normal, and the economy and culture are showing a great recovery trajectory. On April 30, 2021, data released by the National Bureau of Statistics showed that the national cultural industry's developnt had basically recovered to pre-pandemic levels[1]. This is incredibly favorable news for the gaming industry, which holds a significant proportion in the cultural industry. Despite the pandemic's arrival, it did not heavily impact the gaming industry, yet the inability to conduct offline activities continued to affect the performance of ga companies. The warming of the cultural industry implies for most ga companies that the great developnt and prosperity of the cultural industry can promote and enable more ga companies to embark on a sustainable developnt path[2].
Since the outbreak of the pandemic last year to the current stabilization, the country has issued relevant policies from multiple aspects such as finance, institution, and financial support to foster the developnt of the cultural industry. Although the pandemic halted people's travel, it couldn't control the online network's dissemination speed. More and more new dia appeared, driving the developnt of the cultural industry during the pandemic prevention period. However, as each company attempted to squeeze into the online market, the competitive environnt within the cultural industry beca intensely fierce. Many traditional offline companies failed to withstand the pandemic's impact and were eliminated by society. However, in these short two years, nurous cultural industries successfully transford, accelerating their transformation and upgrading through a diversification strategy model. During the pandemic prevention period, where the residents' consumption levels significantly increased, they also reaped considerable benefits, gaining more diversified developnt models and funding inco channels. For instance, the transformation undertaken by Sanqi Mutual Entertainnt during the pandemic prevention period is sothing most ga companies could draw from[3].
2. A Brief Analysis and Classification of Diversification Strategy
(I) A Brief Analysis of Diversification Strategy
The 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 globally influential strategic model is involved in the managent policy strategies of multiple countries, thus leading every big and small enterprise today to seek a place according to the developnt model of the diversification strategy[4].
(II) Classification and aning of Diversification Strategy
The diversification strategy is divided into four types: Horizontal Diversification, Vertical Integration, Concentric Diversification, and Conglorate Diversification. The four different modes generated from the diversification strategy have varied anings. Horizontal Diversification refers to an enterprise producing new products that satisfy new consur demands using the original conditions the market provides, thereby driving market consumption; Vertical Integration refers to an enterprise's vertical extension based on its developnt situation, using the product's industry chain to penetrate other market fields seeking new consur targets; Concentric Diversification emphasizes innovation through original technology, requiring new product production within the original production scope, achieving the whole process through the tamorphosis of original technology; Conglorate Diversification emphasizes expanding the operation scope, requiring enterprises to connect relevant factors such as raw materials, technology, and market related to its products to expand the operation scope[5].
3. The Impact of Diversification Strategy on the Performance of Ga Companies
In the operations of all ga companies, the impact of diversification strategy on a ga company's performance can be divided into two parts: the change of operational mode and the shift of strategic planning. From these two parts of change gradually generates effects that drive the company's performance enhancent. The impacts brought by the diversification strategy are multifaceted. This paper will use Sanqi Mutual Entertainnt Ga Company as an example to analyze and study the impact of diversification strategy on the performance of ga companies[6].
(1) Change of Operational Mode
Currently, the main operation scope of Sanqi Mutual Entertainnt Ga Company is extrely extensive, which benefits from the advantages brought by the diversification strategy. The company's business not only involves the operation of interactive entertainnt, but it also wholly encompasses the research and distribution of mobile gas and web gas under Sanqi Mutual Entertainnt Ga Company. Moreover, in recent years, keeping pace with the tis and continually innovating, it has expanded the market to lay out films, ani secondary dinsions, and is shaping the market cultural industry chain belonging to Sanqi Mutual Entertainnt Ga Company in areas like music, VR technology, and various live broadcasts in the pan-entertainnt business.
In 1995, Sanqi Mutual Entertainnt Ga Company was established, but the developnt path in the early stages was not smooth. 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, constantly facing the risk of being swallowed by the market. Yet, relying on the steady developnt of a single industry, Sanqi Mutual Entertainnt Company was listed in 2011. Nonetheless, following operational mismanagent and market contraction in later stages, Sanqi Mutual Entertainnt inevitably faced the fate of acquisition.
In 2014, Wuhu Shunrong Auto Parts Co., Ltd. acquired Shanghai Sanqi Mutual Entertainnt Technology Co., Ltd. with 60% equity. Though nominally acquired, for Sanqi Mutual Entertainnt, this represented a developnt opportunity worth seizing. Through multi-party collaboration, the two companies completed asset restructuring of various industries. Notably, the exhibition strategy operated by Sanqi Mutual Entertainnt had comnced to show prominence at this ti. Sanqi Mutual Entertainnt transford from being a singular modern cultural and creative company before the acquisition to a dual-main business publicly listed company, concurrently operating advanced production manufacturing and modern cultural creativity. Correspondingly, Sanqi Mutual Entertainnt's corporate operation strategy was also changing, encompassing the business scope covered by the original cultural and creative industry.
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