(Anti-theft, to be released.) 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. The propagation thods of gas are no longer confined to rigid promotional modes, and the influence of gas has gradually expanded to all aspects of life. Correspondingly, gaming companies need to continuously integrate resources, innovate and iterate, and improve performance to keep up with the rapid developnt of the tis. Diversification strategy precisely aligns with the planning needs and developnt goals within the gaming industry. Against the backdrop of economic globalization, diversification strategy, as the preferred mode of corporate developnt, is also applicable to gaming companies. This article uses the Sanqi Mutual Entertainnt Company as an example to explain the impact of diversification strategy on the performance of gaming companies.
Keywords: Diversification strategy; gaming company; performance; impact; Sanqi Mutual Entertainnt Company
Diversification strategy is a market strategy adopted by enterprises to occupy more and explore new markets during their operation process. It is also a strategic planning thod for enterprises to avoid the risks encountered in operating a single business by entering new business fields in a targeted and prepared manner. Applying diversification strategy to gaming companies can effectively improve company performance, bringing about a transformation from quantitative to qualitative changes in the company's developnt.
1. The macro background of diversification strategy
As we enter 2021, with the governnt's effective control of the pandemic, people's lives are returning to normal, and the economy and culture are experiencing a significant recovery. On April 30, 2021, according to the data released by the National Bureau of Statistics, the developnt of the cultural industry nationwide has basically returned to pre-pandemic levels[1]. This is extrely positive news for the gaming industry, which occupies a considerable portion of the cultural industry. Although the arrival of the pandemic did not severely affect the gaming industry, the inability to conduct offline activities has always impacted the performance of gaming companies. The recovery of the cultural industry ans that most gaming companies can embark on a path of sustainable developnt, driven by the great developnt and prosperity of the cultural industry[2].
From the outbreak of the pandemic last year to its current stabilization, the governnt has issued relevant policies from multiple aspects such as finance, regulation, and finance to support the developnt of the cultural industry. Although the pandemic hindered people's travel, it could not control the speed of online network dissemination. More and more new dia have erged, driving the developnt of the cultural industry during the pandemic prevention and control period. However, because all companies want to enter the online market, the competitive environnt among cultural industries is extrely fierce. Many traditional offline enterprises could not withstand the impact of the pandemic and were eliminated by society during this ti. But in these short two years, many successfully transford cultural industries have erged. Most of these companies rely on the diversification strategy model to accelerate transformation and upgrades, and they also gained significantly during the pandemic prevention and control period when the residents' consumption levels increased significantly, obtaining more diversified developnt models and funding channels. For instance, the transformation made by the Sanqi Mutual Entertainnt Company during the pandemic prevention and control is worth learning for most gaming companies[3].
2. A brief analysis and classification of diversification strategy
(1) A brief analysis of diversification strategy
Diversification strategy was proposed by Igor Ansoff, the forefather of strategic managent. In his book "Corporate Strategy," he ntioned the classification of diversification strategy. This strategy, which has influenced world strategy models, is involved in the managent policies of multiple countries, so every small or large enterprise today is seeking a place according to the diversification strategy developnt model[4].
(2) 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 distinct 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 refers to enterprises, according to their developnt situation, deriving vertically and using the product industry chain to penetrate into other market fields to seek new consur targets. Concentric diversification emphasizes innovation of existing technology and requires the production of new products within the existing production range, with the entire process realized through the transformation of existing technology. Conglorate diversification focuses more on the change in the expansion of the business scope. Enterprises need to relate to the raw materials, technology, market, and other factors related to their products to expand the business scope[5].
3. The impact of diversification strategy on the performance of gaming companies
In the operation process of all gaming companies, the impact of diversification strategy on performance is uniformly divided into two parts: changes in the operation model and shifts in strategic planning. These two changes gradually produce effects that drive the improvent of company performance. The influences brought by 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 gaming companies[6].
(1) Changes in the operation model
Currently, Sanqi Mutual Entertainnt Ga Company's main operation scope is extrely broad, which relies on the advantages brought by diversification strategy. The company's business involves not only the operation of interactive entertainnt but also the developnt and distribution of mobile and web gas under Sanqi Mutual Entertainnt Ga Company. In recent developnts, the company has continuously innovated along with the technology of the tis, expanded the market to include films and ani, and shaped its market culture industry chain through various entertainnt businesses, such as music, VR technology, and various live broadcasts.
Sanqi Mutual Entertainnt Ga Company was established in 1995. However, the early developnt path was not smooth because Sanqi Mutual Entertainnt Ga Company was initially a small enterprise. In the beginning, Sanqi Mutual Entertainnt's industry chain did not involve ga or entertainnt industry operations, with a constant risk of being swallowed by the market. Nonetheless, the steady developnt of its single industry led to Sanqi Mutual Entertainnt Company's public listing in 2011. However, with poor operations and market contraction in the later stages, Sanqi Mutual Entertainnt ultimately could not escape being acquired.
In 2014, Wuhu Shunrong Auto Parts Co., Ltd. acquired a 60% stake in Shanghai Sanqi Mutual Entertainnt Technology Co., Ltd. Although officially acquired, for Sanqi Mutual Entertainnt, it was an opportunity for developnt. With multi-party cooperation, the two companies completed various asset restructurings. It is worth ntioning that Sanqi Mutual Entertainnt's ongoing exhibition strategy had already shown promise at this ti. Sanqi Mutual Entertainnt Company transford from a single modern cultural creative company before the acquisition into a dual-principal public company advancing in parallel with advanced manufacturing and modern cultural creativity, accompanied by changes in Sanqi Mutual Entertainnt's corporate operation strategy. The initially covered business scope of the cultural creative industry
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