(Anti-theft, to be released later.) Abstract: Accompanying the advancent of technology and the coverage model of intelligent networks, the rise of the gaming industry in recent years is evident to all citizens. The ans of spreading gas no longer sticks to rigid promotional patterns, and the influence of gas has gradually expanded into every aspect of life. Correspondingly, ga companies also need to continuously integrate resources, innovate, update, 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 gaming industry. In the context of economic globalization, the diversification strategy, as the preferred model for enterprise developnt, also applies to ga companies. This article uses Sanqi Mutual Entertainnt Company as an example to illustrate the impact of the 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 adopted by enterprises in the course of operations to capture more new markets and develop new markets. It is a strategic planning that enterprises adopt to avoid the risks encountered during the operation of a single business and to targetedly and preparedly enter new business fields. Applying the diversification strategy to ga companies can effectively improve their performance, bringing the developnt of ga companies from quantitative change to qualitative change.
1. The Macro Background of Diversification Strategy
Entering 2021, under the effective control of the pandemic by the nation, people's lives have returned to normal, and the economic and cultural landscape also shows signs of 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 particularly advantageous news for the gaming industry, which occupies a large portion of the cultural industry. Although the pandemic did not cause significant impact on the gaming industry, the inability to conduct offline activities has still affected the performance of ga companies. With the recovery of the cultural industry, this ans that the great developnt and prosperity of the cultural industry can promote and drive more ga companies towards sustained developnt[2].
From the outbreak of the pandemic last year to its current stabilization, the nation has issued relevant policies to support the developnt of the cultural industry from multiple aspects such as finance, systems, and finance. Although the pandemic has blocked people's travel, it cannot control the speed of online network dissemination. The ergence of more and more new dia has driven the developnt of the cultural industry during the period of pandemic prevention and control. However, because every company wants to enter the online market, the competitive environnt within the cultural industry has beco very fierce. Many traditional offline enterprises could not withstand the pandemic's impact and were eliminated by society. However, in these short two years, many successfully transford cultural industries have erged. These enterprises mostly accelerated their transformation and upgrade relying on the diversification strategy model, and during the heightened consumption levels of residents during the pandemic prevention and control period, they have also gained significantly, obtaining more diversified developnt models and channels for inco, 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
The diversification strategy was proposed by the father of strategic managent, Igor Ansoff. In his book "Corporate Strategy," he ntioned the classification of diversification strategy. This world-influential strategic model is involved in the managent policies of multiple countries, leading to today where every large and small enterprise is seeking a place following the developnt model of diversification strategy[4].
(2) Classification and aning of Diversification Strategy
There are four types of diversification strategy: horizontal diversification, vertical integration, concentric diversification, and conglorate diversification. The four different models derived from the diversification strategy also have different anings. Horizontal diversification refers to enterprises using the original conditions provided by the market to produce new products that can satisfy users' new needs, thereby driving market consumption. Vertical integration, on the other hand, is when enterprises, based on their developnt status, longitudinally derive and infiltrate other market fields with the product industry chain to seek new consurs. Concentric diversification focuses more on the innovation of existing technology, requiring the production of new products within the existing production range, achieving the entire process through the transformation of original technology. Conglorate diversification focuses on the change in expanding the business range, requiring enterprises to link factors such as raw materials and technology related to their own products as well as the market to expand the business range[5].
3. The Impact of Diversification Strategy on Ga Company Performance
It can be said that, in the operations of all ga companies, the impact of diversification strategy on the performance of ga companies is uniformly divided into two parts: changes in the operation model and shifts in strategic planning. The effects gradually produced from these two parts of transformation drive the improvent of company 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 the performance of ga companies[6].
(1) Change in Operation Model
At present, the main operation 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 solely undertakes the developnt and distribution of mobile gas and web gas under Sanqi Mutual Entertainnt Ga Company. In recent years of developnt, it has kept innovating alongside technological advances, expanding the market to include film and ani subcultures, and also shaping Sanqi Mutual Entertainnt Ga Company's market cultural industry chain in areas such as music, VR technology, and various live broadcasts and other pan-entertainnt businesses.
Sanqi Mutual Entertainnt Ga Company was established in 1995, but its initial developnt path was not smooth. The predecessor of Sanqi Mutual Entertainnt Ga Company was a small enterprise, and at the beginning, its industry chain did not involve the operation of gas or other entertainnt industries, always at risk of being swallowed by the market. However, through the steady developnt of a single industry, Sanqi Mutual Entertainnt Company went public in 2011. Yet, with poor later operations and market contraction, 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 sixty percent equity. Although nominally acquired, it was a developnt opportunity worth grasping for Sanqi Mutual Entertainnt. Under the multifaceted collaboration of the two companies, various industry asset restructurings were completed. Notably, the strategies always operated by Sanqi Mutual Entertainnt had already begun to show promise at this ti. Sanqi Mutual Entertainnt Company transitioned from a single modern cultural creative company before the acquisition to what is now a dual main business listed company of advanced production manufacturing and modern cultural creativity, with corresponding changes in the company's operation strategies, and the business scope covered by the original cultural creative industry.
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