(Anti-theft, to be sent later.) Abstract: Accompanied by advancents in technology and the coverage model of intelligent networks, the rise of the gaming industry in recent years has been evident to the public. The thods of spreading gas are no longer confined to rigid promotional modes, and their influence has gradually extended to various aspects of life. Correspondingly, ga companies need to continuously integrate resources, innovate, update, and improve performance with the rapid developnt of the tis. A diversification strategy fits well with the planning needs and developnt goals within the gaming industry. Against the backdrop of economic globalization, diversification strategy, as the preferred model for corporate developnt, is also applicable to ga companies. This article explains, using Sanqi Mutual Entertainnt Company as an example, the impact of diversification strategy on the performance of ga companies.
Keywords: Diversification Strategy; Ga Company; Performance; Impact; Sanqi Mutual Entertainnt
Diversification strategy is a market strategy tool adopted by enterprises during their operations to capture and explore new markets. It is also a strategic plan used to enter new business fields with targeted and prepared asures to avoid risks encountered in operating single businesses. Applying diversification strategy to ga companies can effectively improve company performance, bringing about a process from quantitative to qualitative change in the developnt of ga companies.
1. The macro background of diversification strategy
Heading into 2021, with the country's strong control over the pandemic, people's lives are back on track, and economic and cultural sectors are showing a great recovery. As of 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 good news for the gaming industry, which occupies a significant portion of the cultural industry. Although the pandemic did not heavily impact the gaming industry, the inability to conduct offline activities always affects the performance of ga companies. The cultural industry's warming provides ga companies the potential for great developnt and prosperity, facilitating more of them to embark on continuous developnt paths[2].
From the outbreak of last year's pandemic to the current stable situation, the governnt has issued policies to support the developnt of the cultural industry from various aspects such as finance, regulations, and finance. Although the pandemic hindered people's mobility, it couldn't control the speed of online network dissemination. More and more new dia erged, driving the cultural industry developnt during pandemic prevention. However, each enterprise's desire to squeeze into the online market led to an extrely competitive environnt in the cultural industry. Many traditional offline enterprises couldn't withstand the pandemic impacts and were socially eliminated, but in these short two years, many successfully transford cultural industries erged. These enterprises mostly accelerated transformation and upgrades through diversification strategy, significantly gaining during the pandemic prevention when residents' consumption levels increased. They obtained diverse developnt models and revenue channels, such as the transformation made by Sanqi Mutual Entertainnt during pandemic prevention worth emulating by most ga companies[3].
2. A brief analysis and classification of diversification strategy
(i) Brief analysis of diversification strategy
Diversification strategy was proposed by the founding father of strategic managent, Igor Ansoff, in his book "What Is Corporate Strategy," where the classification of diversification strategy is discussed. This influential strategic model is involved in managent policies in various countries, leading every large and small enterprise today to seek a place according to the diversification strategy developnt model[4].
(ii) Classification of diversification strategy and its significance
Diversification strategy is divided into four types: horizontal diversification, vertical integration, concentric diversification, and conglorate diversification. The four different modes derived from diversification strategy each have different anings. Horizontal diversification refers to enterprises using the original conditions provided by the market to produce new products that satisfy new user needs, thus driving market consumption. Vertical integration involves enterprises deriving vertically according to their developnt situation, utilizing the product industry chain to penetrate other market fields, seeking new consur targets. Concentric diversification focuses more on innovation of existing technology, requiring the production of new products within the existing production range, realizing the process through the transformation of existing technology. Conglorate diversification emphasizes expanding the scope of operations change, requiring enterprises to connect with factors like raw materials, technology, and markets related to their products for scope expansion in operations[5].
3. Impact of diversification strategy on ga companies' performance
It can be said that in the operation process of all ga companies, the impact of diversification strategy on the performance of ga companies is mainly divided into two parts: changes in operational modes and strategic planning shifts. From these two parts' changes, effects gradually lead to performance improvents. The influence brought by the 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 operational modes
Currently, the primary operational scope of Sanqi Mutual Entertainnt Ga Company is quite extensive, which is also a benefit brought by the diversification strategy. The business of the company not only involves interactive entertainnt operation but also covers the research and publication of mobile and web gas completely. Moreover, recent developnt aligns with modern technology through constant innovation, expanding the market into layouts of film, animation, ACG culture, music, VR technology, and various live entertainnt businesses, shaping the market's cultural industry chain belonging to Sanqi Mutual Entertainnt Ga Company.
Sanqi Mutual Entertainnt Ga Company was established in 1995, but its initial developnt journey wasn't smooth sailing. Originally a small enterprise, Sanqi Mutual Entertainnt didn't involve ga or entertainnt industry operations at first, always facing the risk of being swallowed by the market. Yet, relying on the stable developnt of a single industry, Sanqi Mutual Entertainnt Company was listed in 2011. However, following poor operations and market tightening, Sanqi Mutual Entertainnt eventually could not escape the fate of being acquired.
In 2014, Wuhu Shunrong Auto Parts Co., Ltd. acquired 60% of the equity of Shanghai Sanqi Mutual Entertainnt Technology Co., Ltd. Although nominally acquired, for Sanqi Mutual Entertainnt, this was a developnt opportunity worth seizing. The two companies completed asset restructuring of various industries through multi-party collaboration. It is noteworthy that Sanqi Mutual Entertainnt's ongoing operations strategy began showing promise, transforming from a single modern cultural creativity company before acquisition to today's dual major business listed company of advanced production manufacturing and modern cultural creativity. Correspondingly, Sanqi Mutual Entertainnt's company operation strategy is also undergoing changes, as the business scope covered by the original cultural creativity industry
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