(Anti-theft, will be sent at that ti.) Abstract: With the advancent of technology and the coverage mode of smart networks, the rise of the gaming industry in recent years has been evident to the public. The ways in which gas are spread are no longer confined to rigid promotional modes, and the influence of gas has gradually expanded to all aspects of life. Correspondingly, ga companies need to continuously integrate resources, innovate, and iterate to improve performance along with the rapid developnt of the tis. Diversification strategy perfectly aligns with the planning needs and developnt goals within the gaming industry. In the context of economic globalization, diversification strategy, as a preferred mode for enterprise developnt, is equally applicable to ga companies. This article explains the impact of diversification strategy on ga company performance using Sanqi Mutual Entertainnt Company as an example.
Keywords: diversification strategy; ga company; performance; impact; Sanqi Mutual Entertainnt Company
Diversification strategy is a market strategy approach that enterprises adopt to capture more new markets and expand new markets during their operations. It is also a strategic plan for enterprises to avoid the risks encountered during the operation of a single business by entering new business fields with focus and preparation. Applying diversification strategy to ga companies can effectively improve company performance, bringing the developnt of ga companies from a quantitative change to a qualitative change.
1. The macro background of diversification strategy
Entering 2021, under the strong control of the epidemic by the state, people's lives have returned to normal, and economic culture has shown a great recovery trend. On April 30, 2021, according to the data released by the National Bureau of Statistics, the developnt of the national cultural industry has basically recovered to the level before the epidemic [1]. This is very favorable news for the gaming industry, which accounts for a large proportion of the cultural industry. Although the epidemic did not greatly impact the gaming industry, the inability to carry out offline activities has always affected ga company performance. The recovery of the cultural industry ans that the great developnt and prosperity of the cultural industry can promote and drive more ga companies towards sustainable developnt [2].
From last year's epidemic outbreak to the current stable epidemic situation, the state has promulgated relevant policies to support the developnt of the cultural industry from multiple aspects such as finance, systems, and finance. Although the epidemic hindered people's travel, it could not control the speed of online network dissemination. More and more new dia erged, driving the developnt of the cultural industry during epidemic prevention and control, but due to each company wanting to enter the online market, the competitive environnt within the cultural industry is very fierce. Many traditional offline enterprises were eliminated by society due to the impact of the epidemic, but in these short two years, many successfully transford cultural industries have erged. Most of these enterprises relied on diversification strategy models to accelerate transformation and upgrades, also gaining significantly during the period of epidemic prevention and control when resident consumption levels increased significantly, obtaining more diversified developnt modes and revenue channels. For example, the transformation made by Sanqi Mutual Entertainnt Company during epidemic prevention and control is worth learning for 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 father of strategic managent, Igor Ansoff. In his book "What Is Corporate Strategy," he ntioned the classification of diversification strategies. This globally influential strategy model is involved in the managent policies of multiple countries, so much so that every company, big or small, seeks a place according to the developnt model of diversification strategy today [4].
(2) Classification and aning of diversification strategy
There are four types of diversification strategies: horizontal diversification, vertical integration, concentric diversification, and comprehensive diversification. The anings of the four different models derived from diversification strategy are also different. Horizontal diversification refers to enterprises using the original conditions provided by the market to produce new products that et new user needs, thereby driving market consumption. Vertical integration is where enterprises vertically derive based on their own developnt situation, using product industry chains to penetrate other market fields to seek new consurs. Concentric diversification focuses more on the innovation of existing technology, where new products are produced within the original production scope, and the entire process is achieved through the transformation of existing technology. Comprehensive diversification focuses more on expanding the changes in the scope of operations, where enterprises need to link factors related to their own products such as raw materials, technology, and the market to expand the scope of operations [5].
3. The impact of diversification strategy on ga company performance
It can be said that in all ga company operations, the impact of diversification strategy on ga company performance is uniformly divided into two parts: the change of operation mode and the shift of strategic planning. From the changes in these two parts gradually taking effect, they drive the improvent of company performance. The impact brought by diversification strategy is multifaceted. This paper will analyze and study the impact of diversification strategy on ga company performance using Sanqi Mutual Entertainnt Ga Company as an example [6].
(1) Change of operation mode
Currently, the main operation range of Sanqi Mutual Entertainnt Ga Company is quite extensive, which relies on the advantages brought by diversification strategy. The company's business is not only involved in the operation of interactive entertainnt, but also single-handedly undertakes the research and distribution of mobile gas and web gas under Sanqi Mutual Entertainnt Ga Company. In recent years of developnt, it has continuously innovated alongside technology, expanding the market to layout film and ani in the 2D culture, and is shaping the market cultural industry chain belonging to Sanqi Mutual Entertainnt Ga Company in music, VR technology, and various live broadcast and other pan-entertainnt businesses.
Sanqi Mutual Entertainnt Ga Company was established in 1995, but the developnt path in its early years was not smooth. The predecessor of Sanqi Mutual Entertainnt Ga Company was a small enterprise, and initially, the industry chain of Sanqi Mutual Entertainnt Company did not involve the operation of gas and other entertainnt industries, always having the risk of being swallowed by the market. However, relying on the steady developnt of a single industry, Sanqi Mutual Entertainnt Company was listed in 2011. Accompanied by poor post-operation and market contractions, Sanqi Mutual Entertainnt eventually did not escape the fate of being acquired.
In 2014, Wuhu Shunrong Auto Parts Co., Ltd. acquired sixty percent of the shares of Shanghai Sanqi Mutual Entertainnt Technology Co., Ltd. Although nominally acquired, this was a developnt opportunity worth grasping for Sanqi Mutual Entertainnt. The two companies completed the asset restructuring of various industries through multi-party cooperation. It is worth ntioning that the strategy Sanqi Mutual Entertainnt has always operated began to show its features at this ti. Sanqi Mutual Entertainnt Company transford from a single modern cultural and creative company before the acquisition to a currently dual-main business listed company, concurrently operating advanced production manufacturing and modern cultural creativity. Correspondingly, the company operation strategy of Sanqi Mutual Entertainnt also changes, with the initial scope of business covering cultural and creative industries.
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