,
(Anti-theft, to be sent later.) Abstract: With the advancent of technology and the coverage model of intelligent networks, the rise of the gaming industry in recent years is obvious to the public. The ans of ga dissemination are no longer confined to rigid promotion models, and the influence of gas is gradually expanding to all aspects of life. Correspondingly, gaming companies also need to continuously integrate resources, innovate, and improve performance with the rapid developnt of the tis. Diversification strategy precisely ets the planning needs and developnt goals within the gaming industry. In the context of economic globalization, diversification strategy, being the preferred model for enterprise developnt, is also applicable to gaming companies. This article uses Sanqi Mutual Entertainnt Company as an example to explain the impact of diversification strategy on the performance of gaming companies.
Keywords: Diversification Strategy; Gaming Company; Performance; Impact; Sanqi Mutual Entertainnt Company
Diversification strategy is a market strategic tool used by enterprises during their operations to capture more new markets and explore new markets. It also helps enterprises avoid risks encountered when operating a single business, strategically entering new business areas with targeting and preparation. Applying diversification strategy to gaming companies can effectively improve company performance, leading to a transformation from quantitative to qualitative growth in ga company developnt.
1. Macro Background of Diversification Strategy
Entering 2021, with the effective control of the pandemic by the state, people's lives are returning to normal, and the economy and culture are showing a promising recovery. On April 30, 2021, according to data released by the National Bureau of Statistics, the national cultural industry developnt basically returned to the pre-pandemic level [1]. This is excellent news for the gaming industry, which holds a large share in the cultural industry. Although the pandemic did not significantly impact the gaming industry, the inability to conduct offline activities has affected gaming companies' performance. The recovery of the cultural industry ans, for most gaming companies, that the great developnt and prosperity of the cultural industry can promote more gaming companies to embark on the path of sustainable developnt [2].
From last year's pandemic outbreak to the current pandemic stabilization, the state has promulgated relevant policies to support cultural industry developnt from multiple aspects such as finance, systems, and finance. Although the pandemic has hindered people's travel, 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 control period. However, as various enterprises strive to enter the online market, the competition environnt within the cultural industry is extrely fierce. Many traditional offline enterprises have been eliminated by society due to the pandemic's impact, but in these short two years, many successfully transford cultural industries have erged. These enterprises mostly relied on diversification strategy models to accelerate transformation and upgrading, reaping significant rewards during the pandemic control period with significant increases in residents' consumption levels, obtaining more diversified developnt modes and funding sources. For example, Sanqi Mutual Entertainnt Company's transformation during the pandemic control period is worth emulating for most gaming companies [3].
2. Brief Analysis and Classification of Diversification Strategy
(1) Brief Analysis of Diversification Strategy
Diversification strategy was proposed by the father of strategic managent, Igor Ansoff. In his book "What is Corporate Strategy," he ntioned the classification of diversification strategies. This world-influencing strategic model is involved in managent guidelines and policies in several countries, leading to every enterprise today, large or small, seeking a place through diversification strategy developnt models [4].
(2) Classification and Implication of Diversification Strategy
There are four types of diversification strategy: horizontal diversification, vertical integration, concentric diversification, and conglorate diversification. The anings of these four modes derived from diversification strategy also differ. Horizontal diversification refers to companies using the original conditions provided by the market to produce new products that et users' new demands, thereby driving market consumption. Vertical integration is where companies vertically derive according to their own developnt situations, using the product industry chain to penetrate other market fields to seek new consurs. Concentric diversification focuses more on the innovation of existing technology, requiring new product production within the existing production range, realizing the whole process through the transformation of existing technology. Conglorate diversification focuses more on expanding business scope changes. Enterprises need to connect with factors related to their own products such as raw materials, technology, and market to expand the business scope [5].
3. Impact of Diversification Strategy on Ga Company Performance
It can be said that in the operation of all ga companies, the impact of diversification strategy on ga company performance is unified in two parts: change in operation mode and shift in strategic planning. The effects generated from these two parts gradually drive the company's performance improvent. The impact brought by diversification strategy is multifaceted. This paper will analyze and study the impact of diversification strategy on ga company performance using Sanqi Mutual Entertainnt Ga Company as an example [6].
(1) Change in Operation Mode
Currently, Sanqi Mutual Entertainnt Ga Company's main operational scope is quite extensive, relying on the advantage brought by diversification strategy. The company's business not only involves interactive entertainnt operations, but also undertakes the R&D and publishing of mobile gas and web gas. In recent years, keeping pace with contemporary technology, they constantly innovate, expanding the market to include films and ani's two-dinsional space, and also shape Sanqi Mutual Entertainnt's ga company's market cultural industry chain in music, VR technology, and various entertainnt businesses including live streaming.
Sanqi Mutual Entertainnt Ga Company was established in 1995, but the early developnt path was not smooth. The predecessor of Sanqi Mutual Entertainnt Ga Company was a small enterprise, whose industry chain initially did not involve gaming or other entertainnt industry operations. There was always a risk of being swallowed by the market, but relying on the steady developnt of a single industry, Sanqi Mutual Entertainnt Company was listed in 2011. However, with poor operations and a shrinking market in the later stages, Sanqi Mutual Entertainnt eventually did not escape the fate of acquisition.
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 an opportunity worth seizing for developnt. The two companies completed asset restructurings of various industries through multi-party cooperation. Worth ntioning is that the strategy always operated by Sanqi Mutual Entertainnt had begun to show its edge at this ti. Sanqi Mutual Entertainnt Company transford from being a single modern cultural creative company before the acquisition to a dual-main business listed company now operating both advanced production manufacturing and modern cultural creativity. Correspondingly, Sanqi Mutual Entertainnt's company operation strategy also underwent changes, with the business scope covered by the forr cultural and creative industries.
User Comments
0 comments from readers