(To prevent theft, will be posted in due ti.) Abstract: With the advancent of technology and the model of intelligent network coverage, the rise of the ga industry in recent years has been evident to all. The way gas are disseminated is no longer confined to traditional promotional thods, and their influence gradually extends 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. A diversification strategy precisely ets the planning needs and developnt goals within the ga industry. In the context of economic globalization, the diversification strategy, as the preferred developnt model for enterprises, is also applicable to gaming companies. This paper uses Sanqi Mutual Entertainnt Company as an example to explain the impact of the diversification strategy on the performance of gaming companies.
Keywords: Diversification strategy; Gaming company; Performance; Impact; Sanqi Mutual Entertainnt
Diversification strategy is a market strategy ans adopted by enterprises in the course of operation to capture and develop new markets. It is also a strategic plan ford by enterprises to avoid risks encountered in operating a single business and to strategically and preparedly enter into new business fields. The practical application of a diversification strategy to gaming companies can effectively enhance company performance, leading to a process of cumulative qualitative changes in the developnt of gaming companies.
1. Macro Background of Diversification Strategy
Entering 2021, with the effective control of the pandemic by the state, people's lives return to normal, and the economic and cultural sectors show a promising trend of recovery. On April 30, 2021, according to relevant data released by the National Bureau of Statistics, the developnt of the national cultural industry has basically returned to pre-pandemic levels [1]. For the ga industry, which accounts for a large proportion of the cultural industry, this is very favorable news. Although the pandemic did not significantly impact the ga industry, the inability to conduct offline activities continuously affects the performance of gaming companies. The revival of the cultural industry indicates that for most gaming companies, the great developnt and prosperity of the cultural industry can promote and drive them onto a sustainable developnt path [2].
From last year's pandemic eruption to the current stabilization, the country has introduced relevant policies from finance, systems, finance, and other aspects to support the developnt of the cultural industry. The pandemic, though hampering people's travel, couldn't control the propagation speed of online networks. More and more new dia erged, driving the developnt of the cultural industry during the pandemic prevention period. However, due to nurous enterprises wanting to squeeze into the online market, the competitive environnt among cultural industries is very intense. Many traditional offline businesses could not withstand the impact of the pandemic and were weeded out by society. Yet, in this short span of two years, many transford cultural industries have erged, most of which have accelerated transformation and upgrading through the diversification strategy mode. During the pandemic prevention period, with the significant improvent in residents' consumption levels, they also gained abundant results, obtaining more diversified developnt models and funding inco channels. For example, the transformation made by Sanqi Mutual Entertainnt during the pandemic prevention period is worth following for most gaming companies [3].
2. Brief Analysis and Classification of Diversification Strategy
(1) Brief Analysis of Diversification Strategy
Diversification strategy was proposed by Igor Ansoff, the pioneer of strategic managent. In his work "What is Corporate Strategy," he introduced the classification of diversification strategies. This influential strategic model is covered in the managent policies of various countries so much so that today, enterprises big and small are seeking to establish a position following the developnt model of a diversification strategy [4].
(2) Classification and Implications of Diversification Strategy
The diversification strategy is divided into four types: Horizontal diversification, Vertical integration, Concentric diversification, and Conglorate diversification. The four different modes derived from the diversification strategy have different anings. Horizontal diversification refers to an enterprise using the original conditions provided by the market to produce new products that can et new user demands, thereby driving market consumption. Vertical integration is the vertical derivation of an enterprise according to its developnt status, penetrating other market fields with the product industry chain to seek new consur targets. Concentric diversification focuses more on the innovation of existing technology, requiring the production of new products within the existing production range. The whole process is achieved through the transformation of existing technology. Conglorate diversification emphasizes the change in the range of operations more. An enterprise needs to link factors related to its products, such as raw materials and technology, as well as markets, to expand its operational scope [5].
3. Impact of Diversification Strategy on Gaming Company Performance
It can be said that in the operation process of all gaming companies, the impact of the diversification strategy on gaming company performance is generally divided into two parts: changes in operational models and shifts in strategic planning. From these two parts of transformation, effects gradually generate, driving the improvent of company performance. The impact brought by the 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 gaming company performance [6].
(1) Changes in Operational Models
So far, the main operating scope of Sanqi Mutual Entertainnt Ga Company is very broad. This is also the advantage brought by the diversification strategy. The company's business involves not only the operation of interactive entertainnt but also covers mobile ga and web ga developnt and publishing. In recent years, with continuous innovation following the trend of technology, it has expanded its market to cover the layout of film and ani in the secondary dinsion, as well as shaping its market cultural industry chain in music, VR technology, and various live streaming and other pan-entertainnt businesses.
Founded in 1995, Sanqi Mutual Entertainnt Ga Company did not have a smooth early developntal path. Its predecessor was a small company, and initially, Sanqi Mutual Entertainnt's industrial chain did not involve the operation of gas and other entertainnt industries. There was always the risk of being swallowed by the market. However, by relying on the steady developnt of a single industry, Sanqi Mutual Entertainnt Company beca publicly listed in 2011, but in the wake of mismanagent in later operations and market contractions, Sanqi Mutual Entertainnt eventually did not escape the fate of being acquired.
In 2014, Wuhu Shunrong Auto Parts Co., Ltd. acquired a 60% stake in Shanghai Sanqi Mutual Entertainnt Technology Co., Ltd. Although it was nominally acquired, for Sanqi Mutual Entertainnt, this was a developnt opportunity worth seizing. The two companies completed various industrial asset restructurings through multi-party collaboration. It is worth ntioning that Sanqi Mutual Entertainnt's strategic operations, always in developnt, had begun to shine at this ti. Sanqi Mutual Entertainnt Company transford from a singular modern cultural and creative company before acquisition into a dual-main business listed company paralleled by advanced manufacturing and modern cultural creativity. Correspondingly, the company's operational strategy also underwent changes. The business scope once covered by the cultural and creative industry...
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