(Anti-theft, to be released at the ti.) Abstract: With the advancent of technology and the coverage model of intelligent networks, the rise of the ga industry in recent years is apparent to the public. The way gas are marketed is no longer confined to rigid promotional modes, and the influence of gas has gradually expanded to all aspects of life. Correspondingly, ga companies also need to continuously integrate resources, innovate, and improve performance in line with the rapid developnt of the tis. A diversification strategy aptly ets the planning needs and developnt goals within the ga industry. In the context of economic globalization, a diversification strategy, as the preferred developnt model for enterprises, is equally applicable to ga companies. This article takes Sanqi Mutual Entertainnt Company as an example to illustrate the impact of diversification strategy on the performance of ga companies.
Keywords: Diversification strategy; Ga company; Performance; Impact; Sanqi Mutual Entertainnt Company
The diversification strategy is a market strategy employed by enterprises in their operations to capture and develop new markets. It is also a strategic plan used to avoid risks encountered in operating a single business by strategically and preparedly entering new fields of endeavor. Applying the diversification strategy to ga companies can effectively enhance company performance, leading to a process of qualitative change from quantitative change in the developnt of ga companies.
1. The macro background of the diversification strategy
Entering 2021, with effective control of the pandemic by the state, people's lives have returned to normal, and the economic and cultural landscape has shown great recovery. As of April 30, 2021, data released by the National Bureau of Statistics show that the developnt of the national cultural industry has basically returned to pre-pandemic levels[1]. This is very favorable news for the ga industry, which holds a significant share within the cultural industry. Although the pandemic did not have a significant impact on the ga industry, the inability to conduct offline activities has always affected the performance of ga companies. The cultural industry's recovery 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 state has promulgated relevant policies to support the developnt of the cultural industry from financial, institutional, financial, and other aspects. Although the pandemic has hindered the movent of people, it has not controlled the speed of online dissemination. More and more new dia have erged to lead the developnt of the cultural industry during the pandemic prevention period. However, as each company competes to enter the online market, the competitive environnt within the cultural industry has beco extrely intense. Many traditional offline enterprises have been eliminated by society during this ti due to the pandemic's impact. However, many successfully transford cultural industries have erged within these short two years, most relying on diversification strategy models to accelerate transformation and upgrade. During the pandemic prevention period, when household consumption levels significantly improved, these enterprises also gained considerably, acquiring more diversified developnt models and inco channels. For example, the transformation Sanqi Mutual Entertainnt Company made during the pandemic prevention period is worth imitation by most ga companies[3].
2. Brief analysis and classification of diversification strategy
(1) Brief analysis of diversification strategy
Diversification strategy was proposed by Igor Ansoff, the father of strategic managent. In his book "Corporate Strategy," he ntioned the classification of diversification strategies. This world-influencing strategic model is covered in the managent guidelines and policies of multiple countries, so that today every large and small enterprise seeks a place according to the developnt model of a diversification strategy[4].
(2) Classification and aning of diversification strategy
Diversification strategy is divided into four types: horizontal diversification, vertical integration, concentric diversification, and conglorate diversification. Each of these four different models derived from the diversification strategy has its own aning. Horizontal diversification refers to the enterprise using the original conditions provided by the market to produce new products that et new user needs, thereby driving market consumption; vertical integration is where the enterprise advances vertically based on its own developnt situation, penetrating other market fields with product industry chains to seek new consur targets; concentric diversification focuses more on the innovation of existing technology, requiring new product production within the original production scope. This whole process is realized through the transformation of existing technology; conglorate diversification emphasizes changes in extending the business scope, requiring enterprises to expand the business scope by relating to raw materials, technology, market, and other factors associated with the enterprise's products[5].
3. The impact of diversification strategy on the performance of ga companies
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: the change of operating model and the transfer of strategic planning. The effects gradually produced from these two parts drive the improvent of the company's performance. The impact brought by the diversification strategy is manifold. This paper will take Sanqi Mutual Entertainnt Ga Company as an example to analyze and study the impact of diversification strategy on ga company performance[6].
(1) Change in operating model
Currently, the main operating scope of Sanqi Mutual Entertainnt Ga Company is very extensive, which is also an advantage brought by the diversification strategy. The company's business not only involves the operation of interactive entertainnt but also covers the research and distribution of mobile and web gas under Sanqi Mutual Entertainnt Ga Company itself. In recent developnts, it continuously innovates in line with modern technology, expanding the market to include layouts in film and animation, as well as creating its market cultural industry chain in music, VR technology, and various live broadcast and pan-entertainnt businesses.
Established in 1995, Sanqi Mutual Entertainnt Ga Company did not have a smooth early developnt path. The predecessor of Sanqi Mutual Entertainnt was a small enterprise, and initially, Sanqi Mutual Entertainnt's industry chain did not involve the operation of gas and other entertainnt industries, always facing the risk of being absorbed by the market. However, relying on the steady developnt of a single industry, Sanqi Mutual Entertainnt Company went public in 2011. Yet, due to poor managent and market contraction in later stages, Sanqi Mutual Entertainnt ultimately did not escape the fate of being acquired.
In 2014, Wuhu Shunrong Auto Parts Co., Ltd. acquired 60% of the shares of Shanghai Sanqi Mutual Entertainnt Technology Co., Ltd. Although nominally acquired, for Sanqi Mutual Entertainnt, this was a developnt opportunity worth seizing. Through multiple collaborations, the two companies completed a series of asset restructurings in various industries. It is worth noting that the strategic aspects that Sanqi Mutual Entertainnt has been operating have already shown their edge at this ti. Sanqi Mutual Entertainnt Company transford from a single modern cultural creative company before acquisition to a dual-main business public company that synchronizes advanced production manufacturing with modern cultural creativity. Correspondingly, the company's operational strategies have changed, and the business scope initially covered by the cultural creative industry.
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