(Anti-theft, to be released later.) Abstract: With the progress of technology and the coverage model of intelligent networks, the rise of the ga industry in recent years is evident to the public. The dissemination modes of gas are no longer confined to rigid promotional thods. The influence of gas has gradually expanded to all aspects of life. Correspondingly, ga companies also need to integrate resources, innovate, iterate, and improve performance with the rapid developnt of the tis. Diversification strategy happens to et the planning needs and developnt goals within the ga industry. Against the backdrop of economic globalization, diversification strategy, as the preferred mode for enterprise developnt, is equally applicable to ga companies. This article uses Sanqi Mutual Entertainnt Company as an example to elucidate the impact of diversification strategy on the performance of ga companies.
Keywords: Diversification strategy; Ga company; Performance; Impact; Sanqi Mutual Entertainnt Company
Diversification strategy is a market strategy ans adopted by enterprises in the operation process to occupy more new markets and explore new markets. It is also a strategic planning adopted by enterprises to avoid the risks encountered in the operation of a single business, targeted and prepared to enter new business fields. Applying diversification strategy to ga companies can effectively improve company performance, bringing a process from quantitative change to qualitative change in ga company developnt.
1. Macroeconomic Background of Diversification Strategy
Entering 2021, under the strong control of the pandemic by the governnt, people's lives are back on track, and the economic culture is also showing a booming recovery trend. On April 30, 2021, relevant data released by the National Bureau of Statistics showed that the developnt of the cultural industry nationwide basically returned to pre-pandemic levels[1]. This is very favorable news for the ga industry, which accounts for a large proportion of the cultural industry. Although the arrival of the pandemic did not cause much impact on the ga industry, the inability to conduct offline activities has continuously affected the performance of ga companies. The warming of the cultural industry ans that for most ga companies, this can promote and drive more ga companies onto the path of sustainable developnt[2].
From last year's outbreak of the pandemic to the current stabilization of the pandemic, the nation has introduced relevant policies from multiple aspects such as finance, institutions, and finance to support the developnt of the cultural industry. Although the pandemic has blocked people's footsteps, it cannot control the speed of online network dissemination. More and more new dia erged, driving the developnt of the cultural industry during the pandemic prevention and control period. However, due to various enterprises wanting to squeeze into the online market, the competitive environnt among cultural industries beca intense. Many traditional offline enterprises could not resist the impact of the pandemic and were eliminated by society at this ti. But in this short period of two years, many successfully transford cultural industries also erged, and most of these enterprises accelerate transformation and upgrade rely on diversification strategy models, achieving abundant gains during the pandemic prevention and control period when the residents' consumption level significantly improved, obtaining more diversified developnt models and capital inco channels. For example, Sanqi Mutual Entertainnt Company's transformation 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 Igor Ansoff, the pioneer of strategic managent. In his book "What is Corporate Strategy," he ntioned the classification of diversification strategy. This strategic model, which has influenced the world, has been involved in the policy of managent guidelines in multiple countries, so today every enterprise, large or small, is seeking a place according to the developnt mode of diversification strategy[4].
(b) Classification and Its aning of Diversification Strategy
Diversification strategy is divided into four types: horizontal diversification, vertical integration, concentric diversification, and overall diversification. The four different modes derived from diversification strategy have different anings. Horizontal diversification refers to companies using the original conditions provided by the market to produce new products that can et new user needs, thereby driving market consumption; vertical integration is the vertical derivation based on the company's own developnt situation, using product industry chains to penetrate other market fields seeking new consurs; concentric diversification focuses more on the innovation of existing technology, requiring production of new products within existing production scope, realizing transformation through the mutation of existing technology; overall diversification emphasizes the change in expanding business scope, companies need to expand their business scope by contacting factors related to their own product raw materials, technology, and market[5].
3. The Impact of Diversification Strategy on the Performance of Ga Companies
It can be said that in the operational process of all ga companies, the impact of diversification strategy on the performance of ga companies is uniformly divided into two parts: the change of operation mode and the shift of strategic planning. From the evolution of these two parts, the effects gradually generate to boost the company's performance improvent. The impact brought by 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 the performance of ga companies[6].
(1) Change of Operational Mode
Currently, the main operating scope of Sanqi Mutual Entertainnt Ga Company is very extensive, which is also relying on the advantages brought by diversification strategy. The company's business not only involves operating interactive entertainnt, but also fully takes charge of the research and release of mobile gas and web gas under Sanqi Mutual Entertainnt Ga Company. In recent years of developnt, keeping pace with the tis by innovate endlessly, broadening the market to layout film and television and ani ACG, and also shaping Sanqi Mutual Entertainnt Ga Company's market cultural industry chain in music, VR technology, and various live broadcasts and other pan-cultural businesses.
Founded in 1995, the developnt road of Sanqi Mutual Entertainnt Ga Company wasn't smooth at first. The precursor of Sanqi Mutual Entertainnt Ga Company was a small enterprise, initially, Sanqi Mutual Entertainnt Company's industry chain did not involve the operation of gas and other entertainnt industries, always with the risk of being rged by the market. But relying on the steady developnt of single industry, Sanqi Mutual Entertainnt Company was listed in 2011. However, along with poor operation and market tightening later, Sanqi Mutual Entertainnt eventually 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 acquired nominally, for Sanqi Mutual Entertainnt, this was a developnt opportunity worth grasping. The two companies completed asset restructuring of various industries under multi-party collaboration. It's worth ntioning that the strategy that Sanqi Mutual Entertainnt always operates began to show its edge at this ti. Sanqi Mutual Entertainnt Company transford from a single modern cultural creativity company before being acquired to a dual-main business listed company of advanced production manufacturing and modern cultural creativity in parallel now. Correspondingly, Sanqi Mutual Entertainnt Company's operating strategy also underwent changes, with the business scope covered by the original cultural creative industry.
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