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(Anti-theft, will be released in due course.) Abstract: With the advancent of technology and the coverage model of intelligent networks, the rise of the gaming industry in recent years has been evident to citizens. The modes of ga dissemination are no longer confined to rigid promotional thods, and the influence of gas is gradually expanding to all aspects of life. Correspondingly, gaming companies also need to continuously integrate resources, innovate and iterate, and improve performance with the rapid developnt of the era. The diversification strategy perfectly ets the planning needs and developnt goals within the gaming industry. In the context of economic globalization, diversification strategy, as the primary mode of enterprise developnt, is equally applicable to gaming companies. This article takes Sanqi Mutual Entertainnt Company as an example to explain the impact of diversification strategy on the performance of gaming companies.
Keywords: Diversification strategy; Gaming company; Performance; Impact; Sanqi Mutual Entertainnt Company
Diversification strategy is a market strategic asure adopted by enterprises during operations to occupy and expand new markets further. It is also the strategic planning that enterprises need to adopt to avoid risks encountered during the operation of a single business and intentionally and preparedly enter new business fields. Applying diversification strategy practically to gaming companies can effectively improve company performance, bringing about a transformation process from quantitative change to qualitative change for gaming companies' developnt.
1. The macro background of the diversification strategy
Entering 2021, with the state's effective control over the pandemic, people's lives have returned to normal, and both the economy and culture have shown a positive 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 restored to pre-pandemic levels[1]. This is very favorable news for the gaming industry, which occupies a significant portion of the cultural industry. Although the arrival of the pandemic did not cause much impact on the gaming industry, the inability to conduct offline activities affected the performance of gaming companies. The warming of the cultural industry implies a great developnt and prosperity for most gaming companies, promoting more gaming companies to embark on a path of sustainable developnt[2].
From last year's outbreak to the current stabilization of the pandemic, the state has issued relevant policies from aspects such as finance, systems, and finance to support the developnt of the cultural industry. Although the pandemic blocked people's steps out, it could not control the speed of online network spread. More and more new dia erged, driving the developnt of the cultural industry during pandemic prevention and control. However, as businesses competed to enter the online market, the competitive environnt within the cultural industry beca very fierce. Many traditional offline businesses could not withstand the impact of the pandemic and were eliminated by society, but in these short two years, nurous successfully transford cultural industries have also erged, mainly relying on diversification strategy modes to accelerate transformation and upgrade. During the pandemic prevention and control period, when residents' consumption levels significantly increased, they also harvested abundantly, obtaining more diversified developnt modes and inco channels. Examples include the transformation Sanqi Mutual Entertainnt Company underwent during pandemic prevention and control, which is worth most gaming companies' imitation[3].
2. Simplified analysis and categorization of diversification strategy
(a) Simplified analysis of diversification strategy
Diversification strategy is proposed by Igor Ansoff, the father of strategic managent. In his book "What is Corporate Strategy," he discusses the categorization of diversification strategy. This globally influential strategic mode is involved in the managent guidelines and policies of several countries, resulting in many corporations, both large and small, seeking a place according to the developnt mode of diversification strategy[4].
(b) Categorization and anings 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 each have different anings. Horizontal diversification refers to the use of original market conditions by enterprises to produce new products that can et new user demands, thereby driving market consumption; vertical integration is where enterprises vertically derive based on their developnt conditions, penetrating other market fields using product industry chains to seek new consurs; concentric diversification focuses more on innovation of existing technologies, requiring new product production within the existing production scope, with the entire process realized through the tamorphosis of existing technology; conglorate diversification focuses more on expanding operating range changes, requiring businesses to expand operating scope by connecting factors related to their products such as raw materials, technology, and markets[5].
3. The impact of diversification strategy on gaming company performance
It's said that in the operation processes of all gaming companies, the impact of diversification strategy on gaming company performance is uniformly divided into two parts: changes in operating modes and shifts in strategic planning. The effects gradually generated from these two changes drive the enhancent of company performance. The impact of diversification strategy is multifaceted, and this paper will analyze and research the impact of diversification strategy on gaming company performance using Sanqi Mutual Entertainnt Ga Company as an example[6].
(1) Changes in operating modes
At present, Sanqi Mutual Entertainnt Ga Company's main operating scope is very extensive, which is the advantage brought by diversification strategy. The company is not only involved in interactive entertainnt operations but also exclusively handles the research and distribution of mobile gas and web gas under Sanqi Mutual Entertainnt Ga Company. In recent developnts, it has kept pace with modern technology and continuously innovated, expanding the market layout to areas including film, animation, and ACG. It also shapes its market cultural industry chain in music, VR technology, and various live broadcast fields and other pan-entertainnt businesses.
Sanqi Mutual Entertainnt Ga Company was established in 1995, but the early developnt path was not smooth sailing. Sanqi Mutual Entertainnt Ga Company's predecessor was a small enterprise, initially involving in the industrial chain did not encompass ga and entertainnt industry operations, constantly facing 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. Yet, with poor post-developnt operation and market contraction, Sanqi Mutual Entertainnt could not escape being acquired.
In 2014, Wuhu Shunrong Auto Parts Co., Ltd. acquired Shanghai Sanqi Mutual Entertainnt Technology Co., Ltd. with 60% equity. Although it was nominally acquired, for Sanqi Mutual Entertainnt, it was an opportunity for developnt worth seizing. The two companies, through multifunctional collaboration, completed the asset restructuring of various industries. It is worth ntioning that the strategy that Sanqi Mutual Entertainnt has been operating revealed its prowess at this ti. Sanqi Mutual Entertainnt Company transitioned from a single modern cultural creative company before acquisition to today's dual-core listed company combining advanced production manufacturing and modern cultural creativity. Correspondingly, Sanqi Mutual Entertainnt's company operation strategy also underwent changes, with the original cultural creative industry business scope covered.
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