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(To prevent theft, this will be sent later.) Abstract: With the advancent of technology and the coverage model of smart networks, the recent rise of the gaming industry is evident to the populace. The dissemination thods of gas are no longer limited to rigid promotional models, and the influence of gas has gradually expanded to all aspects of life. Correspondingly, ga companies also need to continuously integrate resources, innovate and update, and enhance performance to keep up with the rapid developnt of the tis. The diversification strategy precisely ets the planning needs and developnt goals within the gaming industry. Against the backdrop of economic globalization, the diversification strategy, as the preferred model for corporate developnt, is equally applicable to ga companies. This article takes Sanqi Mutual Entertainnt Company as an example to explain the impact of diversification strategy on the performance of ga companies.
Keywords: Diversification strategy; Ga companies; Performance; Impact; Sanqi Mutual Entertainnt Company
Diversification strategy is a market strategic approach taken by enterprises in the operational process to capture more new markets and explore new markets. It is also a strategic plan for entering new business fields with targeted preparation to avoid risks encountered during the operation of a single business. The practical application of diversification strategy in ga companies can effectively improve company performance, bringing a transformation from quantitative change to qualitative change for the developnt of ga companies.
1. Macroeconomic Background of Diversification Strategy
Entering 2021, under the effective control of the pandemic by the state, people's lives returned to normal, and the economy and culture showed a prosperous recovery. On April 30, 2021, according to relevant data released by the National Bureau of Statistics, the developnt of the national cultural industry basically recovered to the pre-pandemic level [1]. This is very favorable news for the gaming industry, which holds a significant share of the cultural industry. Although the pandemic did not greatly affect the gaming industry, the inability to conduct offline events consistently impacted the performance of ga companies. Through the recovery of the cultural industry, for most ga companies, it ans that the great developnt and prosperity of the cultural industry can stimulate and drive more ga companies toward sustained developnt [2].
From the outbreak of the pandemic last year to today's stabilization, the state has issued relevant policies from various aspects such as finance, system, and financial support to promote the developnt of the cultural industry. The pandemic may have halted people's travel, but it cannot control the spread speed of online networks. More and more new dia erged, driving the developnt of the cultural industry during the pandemic prevention period. However, since all enterprises wanted to enter the online market, the competitive environnt within the cultural industry beca very intense. Many traditional offline enterprises at this ti could not withstand the impact of the pandemic and were eliminated by society, but in this short two-year period, many successful transformational cultural industries also erged. These enterprises mostly relied on the diversification strategy model to accelerate transformation and upgrading, and during the pandemic prevention period with significantly increased resident consumption levels, they also gained significantly, obtaining more diversified developnt models and sources of inco. For example, the transformation made by Sanqi Mutual Entertainnt Company during the pandemic control period is worth emulating by most ga companies [3].
2. Brief Analysis and Classification of Diversification Strategy
(1) Brief Analysis of Diversification Strategy
The diversification strategy was proposed by the progenitor of strategic managent, Igor Ansoff. In his book "What is Corporate Strategy," he ntioned the classification of diversification strategy. This strategic model, which influences the world, is involved in the managent guidelines and policies of many countries, so much so that today every large and small enterprise follows the developnt model of diversification strategy to seek a place [4].
(2) Classification of Diversification Strategy and Their anings
Diversification strategy is divided into four types: Horizontal diversification, vertical integration, concentric diversification, and comprehensive diversification. The anings of the four different models derived from diversification strategy also vary. Horizontal diversification refers to the company using the original conditions provided by the market to produce new products that can et new user needs, thereby driving market consumption; vertical integration is when a company derives vertically according to its own developnt situation, using product industry chains to infiltrate other market fields to seek new consur targets; concentric diversification focuses more on the innovation of existing technology, needing to produce new products within the original production range, and the entire process is realized through the transformation of existing technology; comprehensive diversification places more emphasis on expanding the scope of operations, and the company needs to connect factors related to its own products' raw materials and technology as well as the market to expand the scope of operations [5].
3. Impact of Diversification Strategy on Ga Companies' Performance
It can be said that in the operational process of all ga companies, the impact of diversification strategy on ga companies' performance is uniformly divided into two parts: changes in the operational model and shifts in strategic planning. From the changes in these two parts, effects gradually arise to drive 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 ga companies' performance [6].
(1) Changes in Operational Model
Currently, the main operational scope of Sanqi Mutual Entertainnt Ga Company is quite extensive, which is also reliant on the advantages brought by the diversification strategy. The company's business not only involves the operation of interactive entertainnt, but Sanqi Mutual Entertainnt Ga Company also thoroughly handles the developnt and distribution of mobile gas and web gas. Moreover, in recent years, it has continuously innovated by keeping pace with cutting-edge technology, expanding the market to include film and ani dinsions, and also shaping its market cultural industry chain in music, VR technology, and various streaming entertainnt businesses belonging to Sanqi Mutual Entertainnt Ga Company.
Established in 1995, Sanqi Mutual Entertainnt Ga Company did not have a smooth path in its early developnt. The predecessor of Sanqi Mutual Entertainnt Ga Company was a small enterprise, initially not involving the operation of gaming or entertainnt industries in its industry chain, always facing the risk of being absorbed 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 and market contraction in later stages, Sanqi Mutual Entertainnt eventually could not escape the fate of being acquired.
In 2014, Wuhu Shunrong Auto Parts Co., Ltd. acquired Shanghai Sanqi Mutual Entertainnt Technology Co., Ltd. with sixty percent equity. Although nominally acquired, this was a developnt opportunity worthy of grasping for Sanqi Mutual Entertainnt. The two companies completed asset reorganization of various industries through multi-party collaboration. It is worth noting that the strategy Sanqi Mutual Entertainnt has been running started to shine at this point. Sanqi Mutual Entertainnt Company transford from being a single modern cultural creative company before the acquisition to today's dual-major listed company with advanced production manufacturing and modern cultural creativity running in parallel. Correspondingly, the company's operational strategy of Sanqi Mutual Entertainnt also underwent changes, covering business areas of the original cultural creative industries.
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