(Anti-theft, post later.) Abstract: With the progress of technology and the coverage model of intelligent networks, the rise of the gaming industry in recent years is evident to the public. The dissemination mode of gas is no longer confined to rigid publicity thods, and the influence of gas has gradually expanded to all aspects of life. Corresponding ga companies also need to continuously integrate resources, innovate, and improve performance in line with the rapid developnt of the tis. A diversification strategy caters precisely to the planning needs and developnt goals within the gaming industry. Under the backdrop of economic globalization, 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, using Sanqi Mutual Entertainnt Company as a case study.
Keywords: Diversification strategy; Ga company; Performance; Impact; Sanqi Mutual Entertainnt Company
Diversification strategy is a market strategic tool adopted by enterprises in the operation process to occupy new markets and expand new markets. It is also a strategic planning thod used by enterprises to avoid risks encountered in operating a single business and enter new business fields in a targeted and prepared manner. Applying a diversification strategy to ga companies can effectively improve company performance, bringing a process of transformation from quantitative change to qualitative change for the developnt of ga companies.
1. Macro background of diversification strategy
Entering 2021, under the strong control of the pandemic by the state, people's lives have returned to normal, and the economic and cultural landscapes also show a great recovery. On April 30, 2021, according to related data published by the National Bureau of Statistics, the developnt of the national cultural industry basically restored to pre-pandemic levels[1]. This is great news for the gaming industry, which holds a significant proportion of the cultural industry. Although the pandemic arrival did not greatly impact the gaming industry, the inability to conduct offline activities has always affected the performance of ga companies. With the cultural industry's revival, for most ga companies, this signifies that 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 now the pandemic being stable, the state has issued relevant policies from multiple aspects such as finance, system, and finance to support the developnt of the cultural industry. Although the pandemic has hindered people's travel, it cannot control the speed of online network dissemination. More and more new dia appeared to drive the cultural industry's developnt during pandemic prevention and control. However, because various companies want to squeeze into the online market, the competitive environnt in the cultural industry is very intense. Many traditional offline companies could not withstand the pandemic impact and were eliminated by society. But within these short two years, many successfully transford cultural industries erged, and these companies mostly relied on diversification strategy modes for accelerated transformation and upgrading, harvesting significant returns during the pandemic prevention and control period where residents' consumption levels significantly increased, obtaining a more diverse developnt model and funding inco channels. For example, the transformation made by Sanqi Mutual Entertainnt during the pandemic prevention and control period is worth referencing by most ga companies[3].
2. Brief analysis and classification of diversification strategy
(A) Brief analysis of diversification strategy
Diversification strategy was proposed by the father of strategic managent, Igor Ansoff, who ntioned the classification of diversification strategy in his book "What is Enterprise Strategy." This world-influencing strategy model is involved in managent policies in multiple countries so that today every large and small enterprise seeks a place according to the developnt model of diversification strategy[4].
(B) Classification and anings 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 diversification strategy also differ. Horizontal diversification refers to enterprises using the original conditions provided by the market to produce new products that satisfy new user needs, thus driving market consumption. Vertical integration is enterprises vertically deriving according to their developnt situation, using the product industry chain to penetrate other market fields to seek new consumption targets. Concentric diversification focuses more on the innovation of existing technology, requiring new product production within the existing production scope. The whole process is realized through the transformation of existing technology. Overall diversification pays more attention to the expansion of operating scope changes. Enterprises need to link factors related to their products, such as raw materials and technology, and market factors to expand the operating range[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 the change of operation mode and the transfer of strategic planning into two parts. Effects gradually erge from the transformation of these two parts to promote the company's performance improvent. The influence brought by diversification strategy is multifaceted. This paper will analyze and study the impact of diversification strategy on ga company performance, taking Sanqi Mutual Entertainnt Ga Company as an example[6].
(1) Change of operation mode
Currently, Sanqi Mutual Entertainnt Ga Company's main operating scope is very broad, which is also the advantage brought by the diversification strategy. The company's business not only involves the operation of interactive entertainnt, but Sanqi Mutual Entertainnt Ga Company also exclusively undertakes the developnt and distribution of mobile gas and web gas under its umbrella. In recent years of developnt, continuously innovating alongside the era's technology, expanding the market to layout film and ani sub-culture, also shaping the market cultural industry chain belonging to Sanqi Mutual Entertainnt Ga Company in pan-entertainnt businesses like music and VR technology and various live streams.
Sanqi Mutual Entertainnt Ga Company was established in 1995, but the early developnt path was not completely smooth. Sanqi Mutual Entertainnt Ga Company's predecessor was a small enterprise. Initially, Sanqi Mutual Entertainnt's industry chain did not involve operating gas and other entertainnt industries, constantly facing the risk of being swallowed by the market. However, relying on the steady developnt of a single industry, Sanqi Mutual Entertainnt Company went public in 2011. But with the later unsatisfactory operation and market contraction, Sanqi Mutual Entertainnt ultimately did not escape the fate of being acquired.
In 2014, Wuhu Shunrong Auto Parts Co., Ltd. acquired a 60% equity stake in Shanghai Sanqi Mutual Entertainnt Technology Co., Ltd. Despite being nominally acquired, for Sanqi Mutual Entertainnt, this was a developnt opportunity worth grasping. The two companies completed asset restructuring of various industries through multi-party collaboration. It is worth ntioning that the exhibition strategy that Sanqi Mutual Entertainnt has always operated already began to show its prowess at this ti. Sanqi Mutual Entertainnt Company transford from a single modern cultural creative company before the acquisition to a dual-main business listed company operating both advanced production manufacturing and modern cultural creativity today, corresponding to which Sanqi Mutual Entertainnt's company operating strategy also underwent changes, covering the business scope that once belonged to the cultural creative industry.
User Comments
0 comments from readers