(Anti-theft, to be released later.) Abstract: Accompanied by technological progress and the coverage model of intelligent networks, the rise of the ga 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 expanded to various aspects of life. Correspondingly, ga companies need to continuously integrate resources, innovate iteration, and improve performance in line with the rapid developnt of the tis. The diversification strategy perfectly ets the planning needs and developnt goals within the ga industry. Under the background of economic globalization, diversification strategy, as the preferred model for enterprise developnt, is also applicable to ga companies. This paper illustrates the impact of diversification strategy on the performance of ga companies taking Sanqi Mutual Entertainnt Company as an example.
Keywords: Diversification strategy; Ga company; Performance; Impact; Sanqi Mutual Entertainnt Company
Diversification strategy is a market strategy tool that enterprises use during their operation to capture more new markets and develop new markets. It is also a strategic plan that enterprises adopt to avoid risks encountered in operating a single business and enter new business fields with targeting and preparedness. The practical application of diversification strategy in ga companies can effectively enhance company performance, bringing a quantitative to qualitative change in the developnt of ga companies.
1. Macro Background of Diversification Strategy
Entering 2021, under the effective control of the pandemic by the governnt, people's lives resud order, and economic culture presented a thriving recovery scenario. On April 30, 2021, relevant data released by the National Bureau of Statistics indicated that the developnt of the national cultural industry had basically returned to pre-pandemic levels[1]. For the ga industry, which holds a significant proportion in the cultural industry, this is very favorable news. Although the arrival of the pandemic did not inflict great harm on the ga industry, the inability to conduct offline activities always affected the performance of ga companies. The recovery of the cultural industry ans for most ga companies that the great developnt and prosperity of the cultural industry can promote and drive more ga companies to embark on a path of sustainable developnt[2].
From last year's pandemic outbreak to the current stabilization, the governnt has introduced relevant policies from multiple aspects such as fiscal, institutional, and financial to support the developnt of cultural industries. Although the pandemic hindered people's movent, it could not control the speed of online network dissemination. More and more new dia erged, driving the developnt of cultural industries during the pandemic prevention and control period. However, due to various companies wanting to rush into the online market, the competitive environnt within the cultural industry beca very intense. Many traditional offline enterprises couldn't withstand the impact of the pandemic and were eliminated by society. However, in these short two years, many successful cultural industry transformations erged, and most of these enterprises relied on diversified strategic models to accelerate transformation and upgrading, also yielding substantial rewards during the pandemic prevention and control period when residents' consumption levels significantly increased, obtaining more diverse developnt models and sources of inco. For example, the transformation undertaken by Sanqi Mutual Entertainnt during the pandemic prevention and control period is worth most ga companies learning from[3].
2. Brief Analysis and Classification of Diversification Strategy
(1) Brief analysis of diversification strategy
Diversification strategy was proposed by Igor Ansoff, the pioneer of strategic managent, who ntioned the classification of diversification strategy in his book "What is Enterprise Strategy." This world-influencing strategic model is involved in the managent policy of multiple countries, so much so that today every enterprise, big or small, seeks a place according to the developnt model of diversification strategy[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 four different models derived from 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, thereby driving market consumption. Vertical integration is for enterprises to vertically derive based on their developnt situation, infiltrating other market fields through the product industry chain to seek new consurs. Concentric diversification focuses more on innovation of existing technologies, requiring the production of new products within the original production scope, realizing transformation through the evolution of existing technologies. Overall diversification emphasizes expansion in business scope, requiring enterprises to connect with factors related to raw materials, technology, and market to expand their business scope[5].
3. Impact of Diversification Strategy on the Performance of Ga Companies
In all ga companies' operations, the impact of diversification strategy on the performance of ga companies can be divided into two parts: changes in the operating model and shifts in strategic planning. These two parts of changes gradually produce effects that drive the improvent of company performance. The impact brought by diversification strategy is multifaceted. This paper will take Sanqi Mutual Entertainnt Ga Company as an example to analyze the impact of diversification strategy on the performance of ga companies[6].
(1) Changes in Operating Model
Currently, the main operating scope of Sanqi Mutual Entertainnt Ga Company is very extensive, also relying on the advantages brought by diversification strategy. The company's business not only covers interactive entertainnt operations but also fully manages the research and publishing of mobile gas and web gas under its umbrella. In recent developnt, it has continuously innovated in accordance with contemporary technology, expanding the market into film and animation layouts. It also shapes the market cultural industry chain belonging to Sanqi Mutual Entertainnt Ga Company in music, VR technology, all kinds of streaming and other pan-entertainnt businesses.
Sanqi Mutual Entertainnt Ga Company was founded in 1995, but the initial developnt path was not smooth. Sanqi Mutual Entertainnt Ga Company's predecessor was a small enterprise, and at first, Sanqi Mutual Entertainnt's industry chain did not cover ga and other entertainnt industry operations, constantly facing the risk of being swallowed by the market. But relying on the steady developnt of a single industry, Sanqi Mutual Entertainnt Company went public in 2011. However, along with poor post-operation and market contraction, Sanqi Mutual Entertainnt eventually did not escape the fate of being acquired.
In 2014, Wuhu Shunrong Auto Parts Co., Ltd. acquired 60% equity of Shanghai Sanqi Mutual Entertainnt Technology Co., Ltd. Despite nominal acquisition, for Sanqi Mutual Entertainnt, this was an opportunity worth grasping for developnt. The two companies completed the asset restructuring of various industries in multi-faceted collaboration. It is worth ntioning that the exhibition strategy always operated by Sanqi Mutual Entertainnt was already beginning to show its brilliance at this ti. Sanqi Mutual Entertainnt Company transford from a single modern cultural creative company before acquisition to a dual-main business listed company with advanced production manufacturing and modern cultural creativity running concurrently. Correspondingly, Sanqi Mutual Entertainnt's company operating strategy is also undergoing changes in the business scope covered by the original cultural creative industry.
User Comments
0 comments from readers