(Anti-theft, to be released 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 nation. The dissemination of gas is no longer confined to rigid promotional thods; the influence of gas has gradually expanded into all aspects of life. Ga companies, in response, must continuously integrate resources, innovate and iterate, and enhance performance to keep pace with rapid developnt. Diversification strategy perfectly ets the planning needs and developnt goals within the ga industry. Under the backdrop of economic globalization, diversification strategy, as the preferred mode for enterprise developnt, is equally applicable to ga companies. 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 company; Performance; Impact; Sanqi Mutual Entertainnt Company
Diversification strategy is a market strategic ans adopted by enterprises during their operation to seize new markets and expand new markets. It is also a strategic plan for enterprises to avoid risks encountered in operating a single business and to enter new business fields with targeted preparation. The practical application of diversification strategy in ga companies can effectively improve company performance, bringing about a process of transformation from quantitative to qualitative changes in the developnt of ga companies.
1. Macro background of diversification strategy
Entering 2021, under the effective control of the pandemic by the country, people's lives have returned to normal, and the economic culture presents a promising recovery trend. On April 30, 2021, according to relevant data released by the National Bureau of Statistics, the developnt of the national cultural industry has basically recovered to pre-pandemic levels[1]. This is very favorable news for the ga industry, which holds a significant proportion of the cultural industry. Even though the arrival of the pandemic did not greatly impact the ga industry, the inability to hold offline activities has always affected the performance of ga companies. Through the warming of the cultural industry, for most ga companies, this ans that the great developnt and prosperity of the cultural industry can promote more ga companies onto a sustainable developnt path[2].
From last year's outbreak of the pandemic to the current stabilization, the country has promulgated relevant policies from multiple 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 speed of online dissemination. The ergence of more and more new dia has driven the developnt of the cultural industry during pandemic prevention and control periods. However, as each enterprise competes to enter the online market, the competitive environnt within the cultural industry has beco very intense. Many traditional offline enterprises have been eliminated by society due to the pandemic's impact in this short two-year period. However, many successfully transford cultural industries have erged, relying largely on the diversification strategy model to accelerate transformation and upgrading. During the pandemic prevention and control period, with the significantly improved level of resident consumption, these enterprises have also gained richly, acquiring more diverse developnt models and funding inco channels. For instance, the transformation made by Sanqi Mutual Entertainnt Company during the pandemic prevention period is worthy of emulation by most ga companies[3].
2. Simplified analysis and classification of diversification strategy
(A) Simplified analysis of diversification strategy
Diversification strategy was proposed by the father of strategic managent, Igor Ansoff. In his written work, "What is Corporate Strategy," he ntioned the classification of diversification strategy. This world-influencing strategic model is involved in the managent guidelines and policies of many countries, leading to every enterprise, large or small, seeking a place according to 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 overall diversification. The four different modes derived from the diversification strategy have varying anings. Horizontal diversification refers to the production of new products that et new user demands using the original conditions provided by the market to drive market consumption; vertical integration derives vertically according to the company's developnt situation, penetrating other market fields with the industry chain of products to seek new consur targets; concentric diversification focuses more on innovations of existing technology, requiring the production of new products within the existing production range, achieving the transformation through the tamorphosis of existing technology; overall diversification emphasizes expanding the scope of operations, requiring enterprises to expand the scope of operations by connecting factors such as raw materials, technology, and market associated with their products[5].
3. Impact of diversification strategy on the performance of ga companies
It can be said that during the operation process of all ga companies, the impact of diversification strategy on ga company performance is uniformly divided into two parts: changes in operation modes and the transfer of strategic planning. From the transformation of these two parts, effects gradually arise, driving the enhancent of company performance. The impact brought by diversification strategy is multifaceted. This paper will take 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) Changes in operation modes
Currently, the main operation scope of Sanqi Mutual Entertainnt Ga Company is very broad, which is also an advantage brought by diversification strategy. The company's business involves not only the operation of interactive entertainnt but also the research and developnt, distribution of mobile gas and web gas under Sanqi Mutual Entertainnt Ga Company are handled by the company. In recent developnt, keeping up with technological advancents, it continues to innovate, expanding markets to layout film and animation secondary dinsions, and also shaping its market cultural industry chain for Sanqi Mutual Entertainnt Ga Company in music, VR technology, and various live streaming entertainnt businesses.
Sanqi Mutual Entertainnt Ga Company was established in 1995, but the initial developnt path was not smooth. The predecessor of Sanqi Mutual Entertainnt Ga Company was a small enterprise, at first, the industry chain of Sanqi Mutual Entertainnt did not involve the operation of ga and entertainnt industries, always at risk of being rged by the market. But relying on stable developnt in a single industry, Sanqi Mutual Entertainnt Company went public in 2011. However, due to poor managent in later stages and market contraction, Sanqi Mutual Entertainnt ultimately did not escape the fate of acquisition.
In 2014, Wuhu Shunrong Auto Parts Co., Ltd. acquired Shanghai Sanqi Mutual Entertainnt Technology Co., Ltd. with sixty percent equity. Although nominally acquired, for Sanqi Mutual Entertainnt, this is a developnt opportunity worth grasping. The two companies completed asset restructuring of various industries under multilateral cooperation. It is worth ntioning that the strategic operation that Sanqi Mutual Entertainnt has always been implenting had already begun to show promise. Sanqi Mutual Entertainnt Company transitioned from a single modern cultural and creative company before acquisition to now a dual-mainline listed company integrating advanced production manufacturing and modern cultural creativity. Correspondingly, Sanqi Mutual Entertainnt's company operation strategy also changed, with the prior cultural and creative industry's business scope encompassed.
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