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(Prevent unauthorized copying, to be sent later.) Abstract: With the progress of technology and the coverage pattern of intelligent networks, the rise of the gaming industry in recent years has been evident to the populace. The dissemination thods of gas are no longer confined to stereotyped promotional models, and the influence of gas has gradually expanded into various aspects of life. Correspondingly, ga companies need to continuously integrate resources, innovate, and update to improve performance in line with the rapid developnt of the tis. The diversification strategy perfectly ets the planning needs and developnt goals within the gaming industry. In the context of economic globalization, the diversification strategy, as the preferred model for enterprise developnt, is also applicable to ga companies. This article illustrates the impact of diversification strategy on ga company performance, taking Sanqi Mutual Entertainnt Company as an example.
Keywords: Diversification strategy; Ga companies; Performance; Impact; Sanqi Mutual Entertainnt Company
The diversification strategy is a market strategy adopted by enterprises in their operations to gain more and explore new markets. It is also a strategic plan adopted by companies to evade the risks encountered during the operation of a single business and to enter new business fields with focus and preparation. Applying the diversification strategy effectively to ga companies can significantly enhance company performance, bringing a process of change from quantitative to qualitative for the developnt of ga companies.
1. Macroscopic background of diversification strategy
Entering 2021, under the strong control of the pandemic by the state, people's lives have returned to normal, and the economic and cultural landscape shows signs of a significant recovery. On April 30, 2021, according to the relevant data published by the National Bureau of Statistics, the developnt of the national cultural industry has basically recovered to the pre-pandemic level [1], which is very favorable news for the gaming industry that holds a large proportion in the cultural industry. Although the arrival of the pandemic did not cause a major impact on the gaming industry, the inability to conduct offline activities always affected the performance of ga companies. The warming of the cultural industry ans, for most ga companies, that the great developnt and prosperity of the cultural industry can promote more ga companies to embark on the road of sustainable developnt [2].
From last year's outbreak of the pandemic to the current stabilization of the pandemic, the state has promulgated relevant policies to support the developnt of the cultural industry from multiple aspects such as finance, system, and finance. Although the pandemic has hindered people's travel, it cannot control the speed of online network dissemination. More and more new dia have erged, driving the developnt of the cultural industry during pandemic prevention and control. However, as various enterprises strive to enter the online market, the competition environnt in the cultural industry is very fierce. Many traditional offline enterprises were eliminated by society due to the impact of the pandemic, but in just two short years, many successfully transford cultural industries erged. These enterprises mostly relied on the diversification strategy model to accelerate transformation and upgrade, and during the pandemic prevention period where resident consumption levels significantly increased, they also gained plentifully, obtaining more diversified developnt models and sources of inco. For instance, the transformation made by Sanqi Mutual Entertainnt Company during the pandemic control period is worth emulating by most ga companies [3].
2. Simplified analysis and classification of diversification strategy
(1) Simplified analysis of diversification strategy
The diversification strategy was proposed by the pioneer of strategic managent, Igor Ansoff. In his book "Corporate Strategy," he ntioned the classification of diversification strategy. This world-influencing strategic model has been involved in the managent policies of multiple countries, resulting in every enterprise big and small today seeking a place according to the developnt model of diversification strategy [4].
(2) Classification and aning of diversification strategy
The diversification strategy is divided into four types: horizontal diversification, vertical integration, concentric diversification, and conglorate diversification. The anings of the four different modes derived from the diversification strategy also vary. Horizontal diversification refers to the enterprise utilizing the original conditions provided by the market to produce new products that can et new user needs, thereby driving market consumption; vertical integration is the enterprise vertically deriving according to its own developnt situation and penetrating other market fields through the product industry chain to seek new consurs; concentric diversification pays more attention to the innovation of original technology and needs to produce new products within the original production range, with the whole process realized through the transformation of original technology; conglorate diversification focuses more on expanding the scope of operations, where the enterprise needs to connect factors related to its own products, such as raw materials, technology, and markets, to expand its operational scope [5].
3. Impact of diversification strategy on ga company performance
In the operation process of all ga companies, the impact of the diversification strategy on ga company performance can be broadly divided into two parts: changes in operating mode and shifts in strategic planning. The effectiveness of these changes gradually drives the performance improvent of the company. The impact of the diversification strategy is multifaceted. This paper will take Sanqi Mutual Entertainnt Ga Company as an example to analyze and study the impact of the diversification strategy on ga company performance [6].
(1) Changes in operating mode
From the current perspective, the main operational scope of Sanqi Mutual Entertainnt Ga Company is very extensive. This is also due to the advantages brought by the diversification strategy. The company's business not only involves the operation of interactive entertainnt but also fully undertakes the developnt and distribution of mobile gas and web gas under Sanqi Mutual Entertainnt Ga Company. In recent years, keeping pace with the tis and technological advancents, it continuously innovated, expanded the market to layout film, and ani subcultures, and is also shaping its market cultural industry chain in music, VR technology, and various types of live broadcasts, and other pan-entertainnt businesses.
Sanqi Mutual Entertainnt Ga Company was established in 1995, but the early developnt road was not smooth. The predecessor of Sanqi Mutual Entertainnt Ga Company was a small enterprise. Initially, Sanqi Mutual Entertainnt's industrial chain did not involve ga and other entertainnt industry operations, always facing the risk of being annexed by the market. However, relying on the steady developnt of a single industry, Sanqi Mutual Entertainnt Company went public in 2011. Accompanying later poor operation and market contraction, Sanqi Mutual Entertainnt finally did not escape the fate of being acquired.
In 2014, Wuhu Shunrong Auto Parts Co., Ltd. acquired 60% equity of Shanghai Sanqi Mutual Entertainnt Technology Co., Ltd. Although it was formally acquired, for Sanqi Mutual Entertainnt, this was an opportunity worth seizing. Under multi-party collaboration, the two companies completed the restructuring of various industrial assets. It is worth ntioning that the exhibition strategy that Sanqi Mutual Entertainnt has been operating has already shown initial results at this ti. Sanqi Mutual Entertainnt Company transford from a single modern cultural and creative company into a dual main business listed company with advanced production manufacturing and modern cultural creativity running parallel, and accordingly, the company's operational strategy was also changing. The scope of business covered by the original cultural and creative industry
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