(Anti-theft, will be published at that ti.) 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 the public. The dissemination of gas is no longer limited to rigid promotional modes, and the influence of gas has gradually extended to all aspects of life. Corresponding ga companies also need to continuously integrate resources, innovate, update, and improve performance amidst the rapid developnt of the era. A diversification strategy aptly ets the planning needs and developnt goals within the gaming industry. In the context of economic globalization, a 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 asure adopted by enterprises during operation to occupy and explore new markets. It is also a strategic plan used to avoid risks encountered in operating a single business, aid at entering new business fields with focus and preparation. The practical application of a diversification strategy to ga companies can effectively enhance company performance, bringing about a quantitative to qualitative transformation in the developnt of ga companies.
1. The macro background of diversification strategy
Entering 2021, with the effective control of the pandemic by the country, people's lives returned to normal, and the economic and cultural landscape showed a promising resurgence. On April 30, 2021, according to data released by the National Bureau of Statistics, the developnt of the national cultural industry basically resud to pre-pandemic levels [1], which is very beneficial news for the gaming industry that accounts for a large proportion of the cultural industry. Although the arrival of the pandemic did not significantly impact the gaming industry, the inability to conduct offline activities always affected the performance of ga companies. The recovery of the cultural industry ans that for most ga companies, the great developnt and prosperity of the cultural industry can promote more ga companies to embark on a path of sustainable developnt [2].
From the outbreak of last year's pandemic to the current stabilization, the country has issued policies from several aspects including finance, regulation, and banking to support the developnt of the cultural industry. While the pandemic halted people's travel, it could not control the speed of online network dissemination. More and more new dia erged, driving the developnt of the cultural industry during the pandemic prevention period. However, as companies strive to squeeze into the online market, competition among cultural industries has beco very fierce. Many traditional offline enterprises could not withstand the impact of the pandemic and were eliminated by society at this ti, but nurous successful transformations in cultural industries have erged during these two short years. These companies mostly rely on the acceleration of transformation and upgrading through diversification strategy models. During the pandemic prevention period, with significant improvent in residents' consumption levels, they have also reaped substantial results, acquiring more diversified developnt modes and channels for financial inco. For instance, the transformation made by Sanqi Mutual Entertainnt during the pandemic prevention period is worth learning for most ga companies [3].
2. Brief analysis and classification of diversification strategy
(1) Brief analysis of diversification strategy
Diversification strategy was proposed by the founding father of strategic managent, Igor Ansoff. In his book "What is Corporate Strategy," he ntioned the classification of diversification strategy. This world-influencing strategic model is involved in managent policies of multiple countries, making every enterprise of all sizes seek a place according to the diversification strategy developnt mode today [4].
(2) Classification and aning of diversification strategy
Diversification strategy is divided into four types: horizontal diversification, vertical integration, concentric diversification, and overall diversification. The anings of the four different modes derived from the diversification strategy vary. Horizontal diversification refers to the enterprise utilizing the original market conditions to produce new products that et new user needs, thereby driving market consumption. Vertical integration is when enterprises derive vertically based on their own developnt situation, use product supply chains to penetrate other market fields to seek new consur targets. Concentric diversification emphasizes innovation of existing technologies, requiring new product production within the original production range, realizing the whole process through the transformation of existing technology. Overall diversification focuses more on expanding the range of operations. Enterprises need to consider factors related to their products, such as raw materials, technology, and market, to expand the scope of operations [5].
3. Impact of diversification strategy on ga company performance
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: operational mode changes and strategic planning shifts. The transformation of these two parts gradually produces effects, boosting company performance enhancent. The impact brought by diversification strategy is multifaceted. This paper will analyze and study the impact of diversification strategy on ga company performance by using Sanqi Mutual Entertainnt Ga Company as an example [6].
(1) Changes in operating mode
Currently, the main operating range of Sanqi Mutual Entertainnt Ga Company is very extensive, relying on the advantages brought by diversification strategy. Not only does the company's business involve interactive entertainnt operation, but also the developnt and distribution of mobile gas and web gas is fully undertaken by Sanqi Mutual Entertainnt Ga Company. In recent years' developnt, the company follows the era of technology with continuous innovation, expanding the market to include film and animation layout, also shaping a market culture industry chain belonging to Sanqi Mutual Entertainnt Ga Company in music, VR technology, and various live broadcasts and other pan-entertainnt businesses.
Sanqi Mutual Entertainnt Ga Company was founded in 1995, but the early developnt path was not all smooth. The predecessor of Sanqi Mutual Entertainnt Ga Company was a small-scale enterprise, which did not involve the operation of gas and other entertainnt industries in its industrial chain initially, always facing the risk of being swallowed by the market. However, with the steady developnt of a single industry, Sanqi Mutual Entertainnt Company was listed in 2011. Yet, with later poor operations and market contraction, Sanqi Mutual Entertainnt eventually did not avoid being acquired.
In 2014, Wuhu Shunrong Auto Parts Co., Ltd. acquired 60% equity of Shanghai Sanqi Mutual Entertainnt Technology Co., Ltd. Although nominally acquired, for Sanqi Mutual Entertainnt, this was a developnt opportunity worth seizing. The two companies completed asset restructuring of various industries through multi-party cooperation. It is worth ntioning that the strategy consistently operated by Sanqi Mutual Entertainnt was already beginning to show its edge at that ti. Sanqi Mutual Entertainnt Company transford from a single modern cultural creative company before being acquired into the current dual-main-industry listed company of advanced manufacturing and modern cultural creativity. Corresponding changes also occurred in the company's operational strategy, encompassing the scope of business covered by the original cultural creative industry.
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