(To prevent theft, it will be published in due ti.) Abstract: With the advancent of technology and the coverage model of intelligent networks, the rise of the ga industry in recent years is evident to the public. The way gas are disseminated is no longer confined to rigid promotional models, and their influence has gradually expanded to all aspects of life. Correspondingly, ga companies also need to continuously integrate resources, innovate, and update, improving their performance in line with the rapid developnt of the tis. The diversification strategy exactly ets the planning needs and developnt goals within the ga industry. In the context of economic globalization, the diversification strategy, as the preferred model for enterprise developnt, is also applicable to ga companies. This article illustrates the impact of diversification strategy on the performance of ga companies, taking Sanqi Mutual Entertainnt Company as an example.
Keywords: Diversification strategy; Ga company; Performance; Impact; Sanqi Mutual Entertainnt Company
Diversification strategy is a market strategy ans used by enterprises in the course of operation to capture and explore new markets. It is also a strategic plan to avoid the risks encountered in the operation of a single business, making targeted and prepared entries into new business fields. Implenting a diversification strategy in ga companies can effectively improve company performance, bringing about a process from quantitative to qualitative change in the developnt of ga companies.
1. Macroeconomic Background of Diversification Strategy
Entering 2021, with the effective control of the pandemic by the state, people's lives have returned to normal, and the cultural economy has shown a great recovery. On April 30, 2021, according to data released by the National Bureau of Statistics, the developnt of the national cultural industry has basically returned to the pre-pandemic level[1]. This is very good news for the ga industry, which occupies a large proportion of the cultural industry. Although the pandemic has not caused much impact on the ga 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 lead more ga companies onto the path of sustainable developnt[2].
From last year's outbreak of the pandemic to the current stabilization, the state has issued relevant policies to support the developnt of the cultural industry in terms of finance, institutions, finance, etc. Although the pandemic has halted people's footsteps, it has not controlled the speed of online network dissemination. More and more new dia have erged, driving the developnt of the cultural industry during the pandemic prevention period. However, due to the competition among enterprises to enter the online market, the competitive environnt in the cultural industry has beco very intense. Many traditional offline enterprises could not withstand the impact of the pandemic and were eliminated by society. Nevertheless, within these short two years, many cultural industries have successfully transford. These enterprises mostly relied on a diversification strategy to accelerate transformation and upgrading, and during the pandemic prevention period, when residents' consumption levels significantly improved, they also gained abundantly, obtaining more diversified developnt models and inco channels. For example, the transformation made by Sanqi Mutual Entertainnt Company during the pandemic prevention period is worth emulating by 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 "Corporate Strategy," he ntioned the classification of diversification strategies. This world-influencing strategic model is involved in the managent policies of multiple countries, so that today, every large and small enterprise is striving to find its place according to the developnt model of diversification strategy[4].
(2) Classification and aning of Diversification Strategy
The diversification strategy is divided into four types: horizontal diversification, vertical integration, concentric diversification, and conglorate diversification. The four different models derived from the diversification strategy have different anings. Horizontal diversification refers to enterprises using the original conditions provided by the market to produce new products eting new user needs, thereby driving market consumption. Vertical integration involves enterprises deriving vertically based on their developnt situation, penetrating into other market fields with the product industry chain to seek new consurs. Concentric diversification focuses more on the innovation of existing technology, requiring the production of new products within the existing production range, achieved through the transformation of existing technology. Conglorate diversification emphasizes expanding the scope of operation, where enterprises need to connect factors such as raw materials, technology, and markets related to their products to expand the scope of operation[5].
3. Impact of Diversification Strategy on the Performance of Ga Companies
It can be said that in the operation of all ga companies, the impact of diversification strategy on ga company performance is uniformly divided into two parts: changes in the operation model and shifts in strategic planning. From these two transformations, effects gradually arise, driving the enhancent of company performance. The impact brought by the diversification strategy is multi-faceted. This paper will use the example of Sanqi Mutual Entertainnt Ga Company to analyze and study the impact of the diversification strategy on the performance of ga companies[6].
(1) Changes in the Operation Model
Currently, the main operating range of Sanqi Mutual Entertainnt Ga Company is very broad, which is one of the advantages brought by the diversification strategy. The company's business not only involves the operation of interactive entertainnt, but also Sanqi Mutual Entertainnt Ga Company itself undertakes the research and developnt and publishing of mobile gas and web gas. In recent developnt, constantly innovating with the tis, the company expanded its market to cover film, television, and ani, creating its market culture industry chain in music, VR technology, and various live-streaming entertainnt businesses.
Founded in 1995, Sanqi Mutual Entertainnt Ga Company's early developnt path was not smooth. The predecessor of Sanqi Mutual Entertainnt Ga Company was a small enterprise, initially without involvent in the operation of the ga and entertainnt industry, facing constant risks of being swallowed by the market. However, with the steady developnt of a single industry, Sanqi Mutual Entertainnt Company was listed in 2011. Unfortunately, due to poor operations in later stages and market contraction, Sanqi Mutual Entertainnt 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. The two companies completed the restructuring of various industries through collaboration. Notably, the strategic operations Sanqi Mutual Entertainnt was running had already begun to show promise by that point. Sanqi Mutual Entertainnt Company transford from a single modern cultural creative company before the acquisition into a dual-main business listed company concurrently engaging in advanced manufacturing and modern cultural creativity. This corresponded to changes in the operation strategy of Sanqi Mutual Entertainnt, while the scope of business originally covered by the cultural creative industry
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