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(Anti-theft, will post later.) Abstract: With technological advancents and the coverage model of intelligent networks, the rise of the gaming industry in recent years is visible to the public. The dissemination thods of gas are no longer confined to traditional promotional modes, and the influence of gas has gradually expanded to various aspects of life. Correspondingly, ga companies need to continuously integrate resources, innovate updates, and improve performance to keep pace with the rapid developnt of the era. The diversification strategy aptly ets the planning needs and developnt goals within the gaming industry. Under the backdrop of economic globalization, diversification strategy as the primary choice for enterprise developnt is equally applicable to ga companies. This paper uses Sanqi Mutual Entertainnt Company as an example to elaborate on the impact of diversification strategy on ga company performance.
Keywords: Diversification Strategy; Ga Company; Performance; Impact; Sanqi Mutual Entertainnt Company
Diversification strategy is a market strategic ans that enterprises adopt during operations to occupy more new markets and develop new markets. It is also a strategic plan for enterprises to avoid risks encountered during the operation of a single business and to enter new business fields with focus and preparation. Practical application of diversification strategy in ga companies can effectively improve company performance, bringing a process of quantitative to qualitative change for the developnt of ga companies.
1. Macroeconomic Background of Diversification Strategy
Entering 2021, with the nation's effective control of the pandemic, people's lives are back on track, and the economy and culture show a promising situation of recovery. On April 30, 2021, according to relevant data announced by the National Bureau of Statistics, the developnt of the national cultural industry has basically returned to pre-pandemic levels [1]. This is quite beneficial news for the gaming industry, which occupies a large proportion of the cultural industry. Although the onset of the pandemic did not significantly affect the gaming industry, the inability to conduct offline activities continually impacted 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 drive more ga companies onto a path of sustainable developnt [2].
From last year's outbreak of the pandemic to the current stabilization, the governnt has issued relevant policies from various aspects such as finance, systems, and finance to support the developnt of the cultural industry. Although the pandemic blocked people's travel, it could not control the speed of online network dissemination. More and more new dia have erged, promoting cultural industry developnt during the pandemic prevention period. However, as each enterprise attempts to squeeze into the online market, the competitive environnt within the cultural industry becos extrely fierce. Many traditional offline enterprises succumbed to the impact of the pandemic and were eliminated by society. Yet, nurous successful transformations in the cultural industry erged in this short two-year period, largely relying on the acceleration of transformation and upgrading through the diversification strategy mode. During the pandemic prevention period, with significantly increased resident consumption levels, they achieved considerable gains and acquired more diversified developnt modes and sources of inco, for instance, the transformation made by Sanqi Mutual Entertainnt during the pandemic prevention period is worthy of reference for most ga companies [3].
2. Brief Analysis and Classification of Diversification Strategy
(a) Brief Analysis of Diversification Strategy
Diversification strategy was proposed by Igor Ansoff, the progenitor of strategic managent. In his book "What is Corporate Strategy," he ntioned the classification of diversification strategy. This influential global strategic model is involved in the managent policies of multiple countries, leading every large and small enterprise today to seek a place through 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 conglorate diversification. The four different modes derived from diversification strategy have distinct anings: horizontal diversification refers to the enterprise using the original conditions provided by the market to produce new products that et new user needs, thereby driving market consumption. Vertical integration is when an enterprise vertically derives based on its developnt, using product industry chains to infiltrate other market fields and seek new consumption targets. Concentric diversification emphasizes innovation within the existing technology, requiring the production of new products within the current production scope, realizing the entire process through the transformation of existing technology. Conglorate diversification focuses more on expanding changes in the business scope, requiring enterprises to connect factors such as raw materials, technology, and market issues related to their own products for expansion of the operating range [5].
3. Impact of Diversification Strategy on Ga Company Performance
It can be said that throughout the operations of all ga companies, the impact of diversification strategy on ga company performance is uniformly divided into two parts: changes in the operating model and shifts in strategic planning. These two parts of change gradually produce effects that drive performance improvent. The impact of 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 company performance [6].
(1) Changes in the Operating Model
Currently, the primary operating scope of Sanqi Mutual Entertainnt Ga Company is quite extensive, which is attributed to the advantages brought by the diversification strategy. The company's business not only involves the operation of interactive entertainnt but also encompasses the developnt and issuance of mobile gas and web gas handled solely by Sanqi Mutual Entertainnt Ga Company. Furthermore, in recent years' developnt, keeping up with technological advancents and continuously innovating, it has broadened the market layout to films and ani in the ACG realm, and also shapes the market cultural industry chain belonging to Sanqi Mutual Entertainnt Ga Company within general entertainnt businesses such as music, VR technology, and various live streaming.
Sanqi Mutual Entertainnt Ga Company was established in 1995, but its early developnt path was not smooth sailing. Sanqi Mutual Entertainnt Ga Company's predecessor was a small enterprise, initially, Sanqi Mutual Entertainnt's industry chain did not involve operations in the entertainnt industry such as gaming, always facing the risk of being swallowed by the market. However, thanks to the stable developnt of a singular industry, Sanqi Mutual Entertainnt Company was listed in 2011. But with poor later operation and market compression, Sanqi Mutual Entertainnt ultimately could 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 nominally acquired, for Sanqi Mutual Entertainnt, this was a developnt opportunity worth grasping. Under collaborative efforts in multiple facets, the two companies completed various industry asset restructurings. It is worth ntioning that the strategic operation that Sanqi Mutual Entertainnt has always run began to show initial results at this ti. Sanqi Mutual Entertainnt Company transford from a single modern cultural creative company before acquisition to now a dual-listed company that concurrently operates advanced manufacturing and modern cultural creativity. Correspondingly, the company's operational strategy of Sanqi Mutual Entertainnt is also undergoing changes, with forrly covered business areas of the cultural creative industry.
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