(Anti-theft, to be issued later.) Abstract: With the advancent of technology and the coverage mode of intelligent networks, the rise of the gaming industry in recent years is evident to the public. The dissemination thods of gas have moved beyond 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 with the rapid developnt of the tis to improve performance. Diversification strategy precisely ets the planning needs and developntal goals within the gaming industry. Against the backdrop of economic globalization, diversification strategy, as the preferred mode of enterprise developnt, is equally applicable to ga companies. This article explains the impact of diversification strategy on the performance of ga companies using Sanqi Mutual Entertainnt Company as an example.
Keywords: diversification strategy; ga company; performance; impact; Sanqi Mutual Entertainnt Company
Diversification strategy is a market strategic approach adopted by enterprises in the operation process to occupy new markets and develop new markets further. It is also a strategic plan adopted by enterprises to avoid risks encountered during the operation of a single business and to enter new business fields with target and preparedness. Applying diversification strategy in ga companies can effectively enhance company performance, bringing the developnt of ga companies from quantitative to qualitative change.
1. The macro background of diversification strategy
Entering 2021, with the country's strong control of the pandemic, people's lives are returning to normal, and the economic culture also shows a promising revival. On April 30, 2021, according to the relevant data released by the National Bureau of Statistics, the national cultural industry developnt has basically returned to pre-pandemic levels [1]. This news is extrely favorable for the gaming industry, which occupies a significant proportion of the cultural industry. Although the arrival of the pandemic did not significantly affect 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 drive more ga companies onto a path of sustainable developnt [2].
From the outbreak of last year's pandemic to the current stabilization, the country has issued relevant policies from finance, systems, and finance to support the developnt of the cultural industry. Although the pandemic has hindered people's travel, it cannot 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, since various enterprises are striving to enter the online market, the competition environnt within the cultural industry is very fierce. Many traditional offline enterprises have been eliminated by society due to the impact of the pandemic. However, in these short two years, many successfully transford cultural industries have erged, and these enterprises mostly rely on diversification strategy models to accelerate transformation and upgrading. Even during the significant rise in resident consumption levels during the pandemic prevention period, they have reaped substantial benefits and gained more diversified developnt models and funding inco channels. For example, the transformation made by Sanqi Mutual Entertainnt during the pandemic prevention period is worth learning from for most ga companies [3].
2. Brief analysis and classification of diversification strategy
(a) Brief analysis of diversification strategy
Diversification strategy was proposed by the pioneer of strategic managent, Igor Ansoff. In his work What is Corporate Strategy, he ntioned the classification of diversification strategy. This globally influential strategic model is involved in managent guidelines and policies across many countries, so today, every small and large enterprise is seeking a place according to the developnt model of diversification strategy [4].
(b) Classification and aning 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 have different anings. Horizontal diversification refers to enterprises using the original market conditions to produce new products that et the new needs of users, thereby driving market consumption. Vertical integration is where enterprises derive vertically according to their own developnt conditions, penetrating the product industry chain into other market fields to seek new consurs. Concentric diversification focuses more on the innovation of existing technology, requiring new product production within the original production range, achieving it through the tamorphosis of existing technology. Conglorate diversification focuses more on expanding the range of operations, where enterprises need to connect factors related to their own products, such as raw materials, technology, and markets, to expand the scope of operations [5].
3. The impact of diversification strategy on the performance of ga companies
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 of operational model and the shift in strategic planning. The effectiveness generated from these two aspects gradually drives the enhancent of company performance. The impact brought by diversification strategy is multifaceted. This paper will use Sanqi Mutual Entertainnt Ga Company as an example to analyze and research the impact of diversification strategy on ga company performance [6].
(1) Change in operational model
Currently, the main operational scope of Sanqi Mutual Entertainnt Ga Company is extensive, relying on the advantages brought by diversification strategy. The company's business is not limited to interactive entertainnt operations. Sanqi Mutual Entertainnt Ga Company also undertakes the research and developnt and distribution of mobile and web gas. In recent developnts, it has kept pace with technological advances and continually innovated, expanding the market to include film and television and ani subcultures. Additionally, it is shaping its own market cultural industry chain within music, VR technology, and various live-streaming entertainnt businesses.
Sanqi Mutual Entertainnt Ga Company was established in 1995, but its early developnt wasn't smooth sailing. The company's predecessor was a small enterprise, and initially, its industry chain didn't involve the operation of gas and other entertainnt industries, facing the constant risk of being annexed by the market. However, relying on the steady developnt of a single industry, Sanqi Mutual Entertainnt Company went public in 2011. But with subsequent poor operations and market shrinkage, Sanqi Mutual Entertainnt ultimately could not escape the fate of 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, this was a developnt opportunity worth seizing. Both companies completed asset restructuring of various industries through multi-party cooperation. Notably, the strategic operation that Sanqi Mutual Entertainnt had always managed began to show its edge. Sanqi Mutual Entertainnt Company transford from a single modern cultural creative company before the acquisition to a dual-listed company with both advanced production manufacturing and modern cultural creativity. Correspondingly, Sanqi Mutual Entertainnt's company operation strategy also changed, with the scope of business initially covered by the cultural creative industry expanding.
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