(Anti-theft, to be sent later.) Abstract: With the advancent of technology and the coverage of intelligent networks, the rise of the gaming industry in recent years is evident to the public. The dissemination of gas is no longer restricted to rigid promotional modes, and the influence of gas has gradually expanded to all aspects of life. Correspondingly, gaming companies need to constantly integrate resources, innovate, and improve performance in line with the fast developnt of the tis. A diversification strategy aligns with the planning needs and developnt goals within the gaming industry. Against the backdrop of economic globalization, a diversification strategy, as the primary mode of corporate developnt, is also applicable to gaming companies. This paper uses Sanqi Mutual Entertainnt Company as an example to explain the impact of a diversification strategy on the performance of gaming companies.
Keywords: Diversification strategy; Gaming company; Performance; Impact; Sanqi Mutual Entertainnt Company
The diversification strategy is a market strategic ans used by enterprises to occupy new markets and explore new markets during the operation process. It is also a strategic plan that enterprises employ to avoid the risks encountered in operating a single business by targeting and preparing to enter new business fields. Applying a diversification strategy to gaming companies can effectively improve company performance, bringing about a process of transformation from quantitative to qualitative changes in the developnt of gaming companies.
1. Macro Background of Diversification Strategy
Entering 2021, with the country effectively controlling the pandemic, people's lives are back on track, and economic culture shows a good trend of recovery. On April 30, 2021, according to the relevant 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 favorable news for the gaming industry, which accounts for a large proportion of the cultural industry. Although the pandemic did not significantly impact the gaming industry, the inability to conduct offline activities has always affected the performance of gaming companies. The recovery of the cultural industry ans that for most gaming companies, the great developnt and prosperity of the cultural industry can promote more gaming companies to embark on a sustainable developnt path[2].
From the outbreak of the pandemic last year to the current stability of the pandemic, the state has issued relevant policies to support the developnt of the cultural industry in terms of finance, institutions, and finance, among others. Although the pandemic has halted people's travel, it cannot control the speed of online network dissemination. More and more new dia have erged, driving the developnt of the cultural industry during the pandemic control period. However, since various companies want to squeeze into the online market, the competitive environnt within the cultural industry is very intense. Many traditional offline enterprises could not withstand the impact of the pandemic and were eliminated by society. However, in just these two years, many successful transitions in the cultural industry have erged, and most of these companies have relied on a diversification strategy model to accelerate transformation and upgrading, reaping considerable benefits during the pandemic control period, with significantly improved consur spending levels, obtaining more diversified developnt models and revenue channels. For example, the transformation made by Sanqi Mutual Entertainnt during the pandemic control period is worth emulating by most gaming companies[3].
2. Brief Analysis and Classification of Diversification Strategy
(1) Brief Analysis of Diversification Strategy
The diversification strategy was proposed by Igor Ansoff, the founding father of strategic managent. In his book "What is Corporate Strategy", he ntioned the classification of diversification strategy. This world-influencing strategic model is involved in the managent policy of many countries, so that today, enterprises of all sizes are seeking a 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 modes 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 that can et new user needs, thus driving market consumption. Vertical integration is for enterprises to leverage their developnt situation to penetrate other market fields and seek new consumption objects; concentric diversification focuses more on the innovation of existing technology, requiring the production of new products within the existing production range, achieving this through the transformation of existing technology; conglorate diversification focuses more on expanding the scope of operations, requiring enterprises to contact raw materials, technology, markets, and other factors related to their products to expand the scope of operations[5].
3. Impact of Diversification Strategy on Gaming Company Performance
It can be said that in the operation process of all gaming companies, the impact of a diversification strategy on gaming company performance is uniformly divided into two parts: changes in the operation mode and the shift in strategic planning. The changes in these two parts gradually generate effects that drive the improvent of company performance. The impact brought by diversification strategy is multifaceted. This paper will analyze the impact of diversification strategy on gaming company performance using the example of Sanqi Mutual Entertainnt Ga Company[6].
(1) Change in the Operation Mode
Currently, the main operation scope of Sanqi Mutual Entertainnt Ga Company is extensive, which is also the advantage brought by the diversification strategy. The company's business not only involves the operation of interactive entertainnt, but also Sanqi Mutual Entertainnt Ga Company undertakes the developnt and distribution of mobile and web gas, and in recent years, it keeps innovating by keeping up with the tis and technology. It broadens the market to include layout in film and television and ani two-dinsional space, and also shapes its market cultural industry chain in music and 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 smooth. The predecessor of Sanqi Mutual Entertainnt Ga Company was a small enterprise, initially not involved in the operation of gas and other entertainnt industries within its industrial chain, always at risk of being swallowed by the market. However, relying on the steady developnt of a single industry, Sanqi Mutual Entertainnt Company was listed in 2011. But with poor operations and market contraction in the later stages, Sanqi Mutual Entertainnt still did not escape the fate of being acquired.
In 2014, Wuhu Shunrong Auto Parts Co., Ltd. acquired Shanghai Sanqi Mutual Entertainnt Technology Co., Ltd. with a 60% equity stake. Although it was acquired in na, for Sanqi Mutual Entertainnt, this was an opportunity for developnt worth seizing. Under the multi-party collaboration of the two companies, they completed the asset restructuring of various industries. It is worth ntioning that the strategy operated by Sanqi Mutual Entertainnt has already shown initial success, with the company transforming from a single modern cultural and creative company prior to the acquisition to a listed company with dual main businesses of advanced production manufacturing and modern cultural creativity. Correspondingly, Sanqi Mutual Entertainnt's company operation strategy is also undergoing changes, previously covered by the scope of the cultural creative industry.
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