(Anti-theft, to be released later.) Abstract: Accompanied by technological advancent and smart network coverage, the rise of the ga industry in recent years has been evident to the public. The dissemination of gas is no longer confined to rigid promotional models, and the influence of gas has gradually expanded to all aspects of life. Correspondingly, ga companies need to continuously integrate resources, innovate and renew, and improve performance in line with the rapid developnt of the tis. Diversification strategy precisely ets the planning needs and developnt goals within the ga industry. Against the backdrop of economic globalization, diversification strategy, as the preferred mode of enterprise developnt, is equally applicable to ga companies. This paper explains the impact of diversification strategy on ga company performance by taking Sanqi Mutual Entertainnt Company as an example.
Keywords: Diversification strategy; Ga company; Performance; Impact; Sanqi Mutual Entertainnt
Diversification strategy is a market strategy adopted by enterprises in the process of operation to capture and develop new markets as well as to avoid risks encountered in operating a single business. It is a strategic planning thod for entering new business fields with focus and preparation. Applying diversification strategy to ga companies can effectively improve company performance, bringing about a transformation from quantitative change to qualitative change for the developnt of ga companies.
1. The Macro Background of Diversification Strategy
Entering 2021, under the effective control of the pandemic by the state, people's lives have returned to normal, and the economic and cultural sectors are showing a great recovery. On April 30, 2021, according to relevant data released by the National Bureau of Statistics, 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 occupies a significant proportion of the cultural industry. Although the advent of the pandemic did not significantly affect the ga industry, the inability to conduct offline activities has always affected the performance of ga companies. With the warming of the cultural industry, this 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 the road of sustainable developnt [2].
From the outbreak of last year's pandemic to the current stability, the country has issued relevant policies from multiple aspects such as finance, institutions, 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. Increasing new dia have erged, driving the cultural industry's developnt during pandemic prevention and control, but due to the intense competition environnt among cultural industries as all enterprises want to enter the online market, many traditional offline enterprises could not withstand the impact of the pandemic and were eliminated by society. Nevertheless, within just these two years, many successfully transford cultural industries have erged, most of which have relied on diversification strategies to accelerate transformation and upgrading. They have also gained significantly during the pandemic prevention and control period when residents' consumption levels have increased significantly, obtaining more diverse developnt models and revenue channels. For example, the transformation made by Sanqi Mutual Entertainnt during the pandemic prevention and control period is worth learning from for most ga 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 "Corporate Strategy," he ntioned the classification of diversification strategies. This world-influencing strategic mode is involved in the managent guidelines and policies of multiple countries, so much so that today every enterprise, big or small, is seeking 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 total diversification. The four different modes derived from diversification strategy an different things. Horizontal diversification refers to the production of new products that et new user needs by using the original conditions provided by the market, thereby driving market consumption; vertical integration ans that enterprises develop vertically according to their own developnt conditions, using product industry chains to penetrate other market fields and seek new consurs; concentric diversification focuses more on the innovation of existing technology, requiring the production of new products within the original production range, achieving this through the transformation of existing technology; and total diversification emphasizes expanding the scope of operations, requiring enterprises to connect factors such as raw materials, technology, and markets related to their own products to expand the scope of operations [5].
3. The Impact of Diversification Strategy on Ga Company Performance
It can be said that during the operation of all ga companies, the impact of diversification strategy on ga company performance is uniformly divided into two parts: changes in operation mode and shifts in strategic planning. From the evolution of these two parts, effects gradually occur, driving the improvent of the company's performance. The impact of diversification strategy is multifaceted, and 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) Changes in Operation Mode
Currently, the main operating scope of Sanqi Mutual Entertainnt Ga Company is very extensive, owing to the advantages brought by diversification strategy. The company not only involves interactive entertainnt operations but also covers the developnt and distribution of mobile gas and web gas under Sanqi Mutual Entertainnt Ga Company. Moreover, in recent developnts, they have continuously innovated in line with modern technology, expanding the market to layout film and animation, as well as in music and VR technology and various live broadcasts, shaping the market cultural industry chain that belongs to Sanqi Mutual Entertainnt Ga Company in the pan-entertainnt business.
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, initially with no involvent in gaming and other entertainnt industry operations within the industrial chain. There was always a 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. Still, with poor later operations and a shrinking market, Sanqi Mutual Entertainnt ultimately 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% stake. Although nominally acquired, this was a developnt opportunity worth grasping for Sanqi Mutual Entertainnt. Under multi-party cooperation, the two companies completed asset restructuring of various industries. It is worth ntioning that the exhibition strategy that Sanqi Mutual Entertainnt had been operating began to show promise at this ti. Sanqi Mutual Entertainnt Company transford from a single modern cultural creative company before acquisition to a listed company with dual main businesses of advanced production manufacturing and modern cultural creativity, corresponding to changes in the company's operational strategy. The original scope of business covered by the cultural creative industry.
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