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(Anti-theft, will be posted later.) Abstract: With the advancent of technology and the pervasive model of intelligent networks, the rise of the gaming industry in recent years is evident to all. The thod of disseminating gas is no longer confined to rigid promotional models, and their influence is gradually expanding to all aspects of life. Accordingly, ga companies need to continually integrate resources, innovate, and improve performance in line with the rapid developnt of the tis. A diversification strategy perfectly aligns with the planning needs and developnt goals within the gaming industry. Against the backdrop of economic globalization, a diversification strategy, as a preferred model for corporate developnt, is equally applicable to ga companies. This paper, using Sanqi Mutual Entertainnt Company as an example, illustrates the impact of diversification strategies on the performance of ga companies.
Keywords: Diversification strategy; Ga companies; Performance; Impact; Sanqi Mutual Entertainnt Company
Diversification strategy is a market strategic ans adopted by enterprises during operations to occupy more and explore new markets, as well as a strategic plan that enterprises use to enter new fields of business with target and preparedness, in order to mitigate the risks encountered in operating a single venture. Applying diversification strategies effectively to ga companies can enhance company performance substantially and facilitate a process from quantitative to qualitative change in the developnt of ga companies.
1. The macro background of diversification strategy
Entering 2021, with the country's effective control of the pandemic, people's lives returned to normal, and the economic and cultural sectors presented a favorable trend of recovery. On April 30, 2021, according to data released by the National Bureau of Statistics, the developnt of the national cultural industry basically recovered to pre-pandemic levels[1]. This is very advantageous information for the gaming industry, which holds a large share of the cultural industry. Although the pandemic did not significantly impact the gaming industry, the inability to conduct offline activities has continuously affected the performance of ga companies. The recovery of the cultural industry signifies, for most gaming companies, a broader developnt and prosperity that can drive more ga companies toward sustainable developnt[2].
From the outbreak of last year's pandemic to the current stabilization, the state has promulgated related policies from various aspects such as finance, institutions, and finance to support the developnt of the cultural industry. The pandemic may have stopped people from traveling, but it could not control the online network's speed of dissemination. The ergence of more and more new dia has been driving the developnt of the cultural industry during the pandemic containnt period. However, since many enterprises are vying to enter the online market, competition within the cultural industry has been fierce. Many traditional offline companies have succumbed to the pandemic impact and been eliminated by society, but in these short two years, many successfully transford cultural industries have erged, mostly relying on the diversification strategy model to accelerate transformation and upgrading, and they have also reaped substantial benefits during the pandemic containnt period, when residents' consumption levels increased markedly, resulting in more diversified developnt models and revenue channels. For instance, Sanqi Mutual Entertainnt's transformation during the pandemic containnt period is a worthy reference for most ga companies[3].
2. Brief analysis and classification of diversification strategies
(a) Brief analysis of diversification strategies
Diversification strategy was proposed by the father of strategic managent, Igor Ansoff. In his book "What Is Corporate Strategy," he ntioned the classification of diversification strategies. This globally influential strategic model is involved in the managent policies and guidelines of many countries, making almost every enterprise, big or small, strive for a place according to the developnt model of diversification strategies[4].
(b) Classification and implications of diversification strategies
There are four types of diversification strategies: horizontal diversification, vertical integration, concentric diversification, and conglorate diversification. The four different models derived from diversification strategies have distinct anings. Horizontal diversification involves enterprises using the primitive conditions provided by the market to produce new products that et users' new demands, thereby driving market consumption. Vertical integration refers to enterprises deriving vertically based on their developnt situation, penetrating other market fields with product industrial chains to seek new consurs. Concentric diversification focuses more on innovation in existing technologies, requiring the production of new products within the existing production range, achieving this through the transformation of existing technology. Conglorate diversification emphasizes expanding the scope of operations, requiring enterprises to consider factors such as raw materials and technologies related to their products, as well as markets, to expand their operating range[5].
3. The impact of diversification strategies on the performance of ga companies
It can be said that in the operations of all ga companies, the impact of diversification strategies on performance is unified into two parts: the change of operating mode and the shift in strategic planning. These changes gradually generate effects to boost company performance. The impact of diversification strategies is manifold. This paper will use Sanqi Mutual Entertainnt Ga Company as a case to analyze and study the impact of diversification strategies on the performance of ga companies[6].
(1) Change in operating modes
Currently, the main operation scope of Sanqi Mutual Entertainnt Ga Company is quite extensive, largely 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. In recent years, it has kept pace with technological advancents and continuously innovated, expanding the market to realms of film and animation, creating its own market cultural industry chain in music, VR technology, and various types of live broadcasting among other pan-entertainnt businesses.
The Sanqi Mutual Entertainnt Ga Company was founded in 1995, but its early developnt was not smooth sailing. The precursor to Sanqi Mutual Entertainnt Ga Company was a small enterprise, initially with no involvent in ga and other entertainnt industry operations within its industrial chain, always under the risk of being swallowed by the market. However, relying on the steady developnt of a single industry, Sanqi Mutual Entertainnt Company went public in 2011. Yet, with poor operational managent in later stages and market contraction, Sanqi Mutual Entertainnt eventually could not escape the fate of acquisition.
In 2014, Wuhu Shunrong Auto Parts Co., Ltd. acquired 60% of the shares of Shanghai Sanqi Mutual Entertainnt Technology Co., Ltd. Though nominally acquired, this was a valuable developnt opportunity for Sanqi Mutual Entertainnt. Through multi-faceted collaboration, the two companies completed the asset restructuring of various industries. Notably, the strategy that Sanqi Mutual Entertainnt had always operated was beginning to show its edge. Sanqi Mutual Entertainnt Company transford from a single modern cultural creative company prior to acquisition to a current dual-main business listed company involving advanced manufacturing and modern cultural creativity concurrently. Corresponding to this, Sanqi Mutual Entertainnt's company operational strategy also underwent changes. The business scope covered by the original cultural creative industry
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