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(Anti-theft, to be sent later.) Abstract: With the progress of technology and the coverage model of intelligent networks, the rise of the gaming industry in recent years has been evident to the populace. The dissemination of gas is no longer confined 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 iterate, and improve performance in line with the rapid developnt of the tis. The diversification strategy fits exactly with the ga industry's planning needs and developnt goals. In the context of economic globalization, the diversification strategy, as the preferred mode of enterprise developnt, is also applicable to ga companies. This article uses Sanqi Mutual Entertainnt Company as an example to explain the impact of diversification strategy on the performance of ga companies.
Keywords: diversification strategy; ga company; performance; impact; Sanqi Mutual Entertainnt Company
The diversification strategy is a market strategy thod adopted by enterprises in the operation process to occupy more new markets and develop new markets. It is also a strategic plan used by enterprises to avoid the risks encountered in operating a single business and to purposefully and preparedly enter new business fields. Applying the diversification strategy practically to ga companies can effectively improve the company's performance, bringing a process of transformation from quantitative change to qualitative change for the developnt of ga companies.
1. The Macro Background of Diversification Strategy
Stepping into 2021, under the country's effective control of the pandemic, people's life is back on track, and the economic and cultural landscape shows a promising trend of recovery. On April 30, 2021, according to related data published by the National Bureau of Statistics, the overall developnt of the cultural industry nationwide has basically returned to the pre-pandemic level [1]. This is incredibly beneficial news for the gaming industry, which holds a large proportion within the cultural industry. Although the pandemic did not significantly impact the gaming industry, the inability to conduct offline activities has always affected the performance of ga companies. The warming of the cultural industry ans that for most ga companies, the great developnt and prosperity of the cultural industry can promote and lead more ga companies onto the path of sustainable developnt [2].
From the outbreak of the pandemic last year to the current stability, the country has promulgated relevant policies from aspects like finance, system, and finance to support the developnt of the cultural industry. Although the pandemic hindered people's travel, it could not control the spread speed of the online network. More and more new dia have erged, driving the developnt of the cultural industry during the pandemic prevention period. However, the competition environnt within the cultural industry is very fierce due to every company trying to squeeze into the online market. Many traditional offline enterprises could not withstand the impact of the pandemic and were eliminated by society. However, within these short two years, many successfully transford cultural industries have erged, and most of these companies accelerated transformation and upgrading relying on the diversification strategy model, significantly benefiting during the pandemic prevention period with a notable increase in resident consumption levels. They have obtained more diversified developnt models and inco channels. For example, the transformation made by Sanqi Mutual Entertainnt during the pandemic prevention period is worth learning for most ga companies [3].
2. Simple Analysis and Classification of Diversification Strategy
(1) Simple Analysis of Diversification Strategy
The diversification strategy was proposed by the father of strategic managent, Igor Ansoff. In his book "Corporate Strategy," he ntioned the classification of diversification strategy. This world-influencing strategy model is involved in the managent policies of multiple countries, so much so that today every big and small enterprise seeks to secure a place according to the developnt mode of the diversification strategy [4].
(2) Classification and aning of Diversification Strategy
There are four types of diversification strategy: horizontal diversification, vertical integration, concentric diversification, and overall diversification. The four different models derived from the diversification strategy have different anings. Horizontal diversification refers to the production of new products that et new user needs using the original market conditions, thereby driving market consumption. Vertical integration, on the other hand, is derived vertically by the enterprise based on its developnt situation, using the product industry chain to penetrate other market fields to seek new consurs. Concentric diversification focuses more on innovation of existing technology, requiring the production of new products within the original production scope, the entire process achieved through the tamorphosis of existing technology. Overall diversification focuses more on changes in expanding the scope of operations. The enterprise needs to expand its scope of operation by contacting factors related to its product, such as raw materials, technology, and market [5].
3. The 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: the change in operation mode and the shift of strategic planning. From the gradual effect generated by the transformation of these two parts, the company's performance is driven to improve. The impact brought by the diversification strategy is multifaceted. This paper will use Sanqi Mutual Entertainnt Ga Company as an example to analyze and study the impact of diversification strategy on ga company performance [6].
(1) Change in Operation Mode
Currently, the main operation scope of Sanqi Mutual Entertainnt Ga Company is very broad. This is also thanks to the advantages brought by the diversification strategy. The company's business not only involves the operation of interactive entertainnt but also takes full responsibility for the developnt and distribution of mobile gas and web gas under Sanqi Mutual Entertainnt Ga Company. Moreover, in recent years of developnt, it has kept pace with tis and technology to continuously innovate, expanding the market to include films and ani two-dinsional layouts, as well as establishing its market cultural industry chain in music, VR technology, and various live streaming and other pan-entertainnt businesses.
Sanqi Mutual Entertainnt Ga Company was established in 1995, but the developnt path in the early stages was not smooth sailing. The predecessor of Sanqi Mutual Entertainnt Ga Company was a small enterprise, and initially, Sanqi Mutual Entertainnt's industrial chain did not involve operations in the entertainnt industry like gas, always facing the risk of being incorporated into the market. However, with the steady developnt of a single industry, Sanqi Mutual Entertainnt Company went public in 2011, but due to poor operations in later stages and market contraction, Sanqi Mutual Entertainnt ultimately 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. Despite being nominally acquired, this was a developnt opportunity worth grasping for Sanqi Mutual Entertainnt. The two companies completed various industry asset reorganizations through multi-party collaboration. Notably, the strategy that Sanqi Mutual Entertainnt had always operated on was beginning to show its edge at this ti. Sanqi Mutual Entertainnt Company transford from a single modern cultural creative company before being acquired to today's dual-core listed company of advanced production manufacturing and modern cultural creativity operating in parallel. Correspondingly, Sanqi Mutual Entertainnt's corporate operation strategy also underwent changes, with the business scope covered by the original cultural creative industry expanding.
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