(Anti-theft, will be released in due course.) Abstract: With the progress of technology and the coverage model of intelligent networks, the rise of the gaming industry in recent years has been evident to the public. The dissemination thod of gas is no longer confined to rigid promotion thods, and the influence of gas has gradually expanded 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 just ets the planning needs and developnt goals within the gaming industry. In the context of economic globalization, diversification strategy, as the preferred mode for enterprise developnt, is also applicable to gaming companies. This article explains the impact of diversification strategy on gaming company performance using Sanqi Mutual Entertainnt Company as an example.
Keywords: Diversification Strategy; Gaming Company; Performance; Impact; Sanqi Mutual Entertainnt Company
Diversification strategy is a market strategy thod adopted by enterprises in the operation process to capture new markets and develop new markets more comprehensively. It is also a strategic planning used by enterprises to avoid risks encountered in operating single businesses by entering new business fields in a targeted and prepared manner. The actual application of diversification strategy in gaming companies can effectively improve company performance and bring about a process of qualitative change from quantitative change in the developnt of gaming companies.
1. The Macroeconomic Background of Diversification Strategy
Entering 2021, under the strong control of the epidemic by the state, people's lives have returned to normal, and the economic and cultural situation is also showing a great recovery montum. On April 30, 2021, according to relevant data released by the National Bureau of Statistics, the overall developnt of the national cultural industry has basically recovered to the pre-epidemic level [1]. This is very favorable news for the gaming industry, which accounts for a large proportion of the cultural industry. Although the arrival of the epidemic did not greatly impact the gaming industry, the inability to conduct offline activities has always affected the performance of gaming companies. Through the warmth of the cultural industry, this ans for most gaming companies that the great developnt and prosperity of the cultural industry can promote and drive more gaming companies onto a sustainable developnt path [2].
From last year's outbreak to the current stability of the epidemic, the country has promulgated relevant policies from multiple aspects such as finance, system, and finance to support the developnt of the cultural industry. Although the epidemic has blocked people's steps to 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 epidemic prevention and control period. However, due to the competition among enterprises to enter the online market, the competitive environnt of the cultural industry is very fierce. Many traditional offline enterprises were eliminated by society due to the impact of the epidemic, but in these short two years, many cultural industries have successfully transford. Most of these enterprises have accelerated transformation and upgrading through diversification strategy mode, and during the epidemic prevention and control period, when resident consumption levels have significantly increased, they have also reaped lucrative results, obtaining more diversified developnt modes and fund inco channels. For example, the transformation made by Sanqi Mutual Entertainnt during the epidemic prevention and control period is worth learning from by most gaming companies [3].
2. A Brief Analysis and Classification of Diversification Strategy
(1) A Brief Analysis of Diversification Strategy
Diversification strategy was proposed by the pioneer of strategic managent, Igor Ansoff. In his book "Corporate Strategy", he ntioned the classification of diversification strategy. This world-influencing strategic model is involved in the managent policy guidelines of multiple countries, so that today every enterprise, no matter how big or small, is seeking a place according to the developnt mode of diversification strategy [4].
(2) Classification and aning of Diversification Strategy
Diversification strategy is divided into four types in total: horizontal diversification, vertical integration, concentric diversification, and conglorate diversification. The four different modes derived from diversification strategy also have different anings. Horizontal diversification refers to the enterprise 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 when enterprises derive vertically according to their developnt status and use the product industry chain to penetrate into other market fields to seek new consumption targets; concentric diversification focuses more on innovation of existing technology, requiring new products to be produced within the original production range, and the entire process is realized through the tamorphosis of existing technology; conglorate diversification focuses more on expanding the scope of operations. Enterprises need to expand their business scope by connecting with factors such as raw materials, technology, and markets related to their products [5].
3. The Impact of Diversification Strategy on Gaming Company Performance
It can be said that in the operation process of all gaming companies, the impact of diversification strategy on gaming company performance is uniformly divided into two parts: changes in operation mode and changes in strategic planning. The effects produced from these two parts gradually drive the improvent of the company's performance. The impact brought by diversification strategy is multifaceted. This paper will take Sanqi Mutual Entertainnt Ga Company as an example to analyze and study the impact of diversification strategy on gaming company performance [6].
(1) Changes in Operation Mode
Currently, Sanqi Mutual Entertainnt Ga Company's main operation range is very extensive, which relies on the advantages brought by the diversification strategy. The company's business not only involves interactive entertainnt operations, but also fully covers research and distribution of mobile gas and web gas under Sanqi Mutual Entertainnt Ga Company. In recent years, it has kept up with technological advancents and continuously innovated, expanding the market layout to film and animation, and also shaping its market cultural industry chain in various entertainnt businesses such as music, VR technology, and live streams.
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, and the industrial chain of Sanqi Mutual Entertainnt initially did not involve the operation of gas and other entertainnt industries, posing a constant 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 later operation and market contraction, Sanqi Mutual Entertainnt could not escape the fate of acquisition.
In 2014, Wuhu Shunrong Auto Parts Co., Ltd. acquired Shanghai Sanqi Mutual Entertainnt Technology Co., Ltd. with a 60% equity stake. Although nominally acquired, for Sanqi Mutual Entertainnt, this was a developnt opportunity worth seizing. The two companies completed various industrial asset restructuring through multi-party collaboration. It is worth ntioning that the expansion strategy always operated by Sanqi Mutual Entertainnt was beginning to shine at this ti. Sanqi Mutual Entertainnt Company transford from a single modern cultural creative company before being acquired into a dual-main business listed company engaged in both advanced production manufacturing and modern cultural creativity. Correspondingly, the company operation strategy of Sanqi Mutual Entertainnt is also undergoing changes, and the business scope previously covered by the cultural creative industry.
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