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(Protection against theft, will be sent later.) Abstract: With the advancent of technology and the coverage model of smart networks, the rise of the ga industry in recent years is evident to the public. The thod of spreading gas is no longer limited to stereotyped promotional models, and the influence of gas has gradually expanded to every aspect of life. Correspondingly, ga companies need to continuously integrate resources, innovate updates, and improve performance along with the rapid developnt of the era. The diversification strategy perfectly aligns with the planning needs and developnt goals within the ga industry. In the context of economic globalization, diversification strategy, as the preferred model for enterprise developnt, is also applicable to ga companies. This paper, using Sanqi Mutual Entertainnt Company as an example, explains the impact of diversification strategies on the performance of ga companies.
Keywords: Diversification Strategy; Ga Company; Performance; Impact; Sanqi Mutual Entertainnt
Diversification strategy is a market strategic approach that enterprises adopt in the course of operation to occupy more new markets and explore new markets. It is also a strategic plan that enterprises use to avoid risks encountered in operating a single business, and to enter new business fields with targeting and preparation. Applying diversification strategy to ga companies can effectively improve company performance, bringing a process from quantitative change to qualitative change for the developnt of ga companies.
1. Macro-background of Diversification Strategy
Entering 2021, under the strong control of the epidemic by the state, people's lives have returned to normal, and economic culture also shows a great trend 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-epidemic levels [1]. This is very favorable news for the ga industry, which accounts for a large proportion of the cultural industry. Although the arrival of the epidemic did not greatly affect the ga industry, the inability to conduct offline activities always affects the performance of ga companies. The warming of the cultural industry ans for most ga companies that the grand developnt and prosperity of the cultural industry can promote and drive more ga companies to embark on the path of sustainable developnt [2].
From last year's outbreak to the current stabilization of the pandemic, the state has issued policies from various aspects such as finance, system, and finance to support the developnt of the cultural industry. Although the epidemic has blocked people's travel, it cannot control the spreading speed of online networks. More and more new dia erge, driving the developnt of the cultural industry during the epidemic prevention and control period. But given that each enterprise wants to squeeze into the online market, the competitive environnt among cultural industries is extrely fierce. Many traditional offline enterprises were eliminated by society under the influence of the epidemic, but in this short two-year period, many successfully transitioned cultural industries erged, mostly relying on diversification strategy models to accelerate transformation and upgrade. During the epidemic prevention and control period when residents' consumption levels significantly increased, they also gained a lot, acquiring more diversified developnt models and financial inco channels, such as the transition made by Sanqi Mutual Entertainnt during the epidemic prevention and control period, which is worth learning from by most ga companies [3].
2. Simple Analysis and Classification of Diversification Strategy
(a) Simple 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 strategies. This world-influencing strategic model is involved in the managent policy guidelines of many countries, so much so that today every large and small enterprise is 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 diversification strategy also have different anings. Horizontal diversification refers to the enterprise using the original conditions provided by the market to produce new products that can satisfy new user demands, thereby driving market consumption; Vertical integration is the enterprise deriving vertically according to its developnt situation, utilizing the product supply chain to infiltrate other market fields to seek new consur targets; Concentric diversification focuses more on innovation of existing technology, needing to produce new products in the original production area, realizing through the transformation of existing technology; Overall diversification focuses more on changes in the expansion of the scope of operations. Enterprises need to connect with raw materials, technology, and market factors related to their products to expand their scope of operations [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: change in the operating model and shift in strategic planning. This effect gradually generates change from these two parts, driving the company's performance improvent. The impact brought by diversification strategy is multifaceted. This paper will analyze and study the impact of diversification strategy on ga company performance using Sanqi Mutual Entertainnt Ga Company as an example [6].
(1) Change in the Operating Model
Currently, Sanqi Mutual Entertainnt Ga Company's main operating range is very extensive, which relies on the advantages brought by diversification strategy. The company's business not only involves interactive entertainnt operations but also fully undertakes the research and developnt and distribution of mobile and web gas under its banner. In recent years, keeping pace with the technology of the tis, it continues to innovate, expanding the market to layout in film and animation secondary, and is also shaping the market cultural industry chain belonging to Sanqi Mutual Entertainnt Ga Company in music, VR technology, and various live entertainnt businesses.
Sanqi Mutual Entertainnt Ga Company was established in 1995, but the developnt path in the early stage was not smooth. The predecessor of Sanqi Mutual Entertainnt Ga Company was a small enterprise, and initially, the industrial chain of Sanqi Mutual Entertainnt did not involve the operation of ga and other entertainnt industries, always with the risk of being swallowed by the market. However, relying on the steady developnt of a single industry, Sanqi Mutual Entertainnt Company was listed in 2011, but with poor operation in the later stage and market shrinkage, Sanqi Mutual Entertainnt ultimately did not escape the fate of being acquired.
In 2014, Wuhu Shunrong Auto Parts Co., Ltd. acquired 60% ownership of Shanghai Sanqi Mutual Entertainnt Technology Co., Ltd. Although it was acquired in na, for Sanqi Mutual Entertainnt, this was a developnt opportunity worth seizing. The two companies completed asset restructuring of various industries through extensive collaboration. It is worth ntioning that the strategy Sanqi Mutual Entertainnt has always operated began to show its prowess at this ti. Sanqi Mutual Entertainnt Company transitioned from a single modern cultural creative company before the acquisition to today's advanced production manufacturing and modern cultural creativity coexisting dual main business listed company. Correspondingly, the company's operation strategy of Sanqi Mutual Entertainnt also underwent changes, with the original range of business covered by the cultural creative industry.
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