(Anti-theft, posting it later.) Abstract: With the advancent of technology and the widespread coverage of smart networks, the rise of the gaming industry in recent years is evident to the public. The thods of ga dissemination are no longer confined to rigid promotional models, and the influence of gas has gradually expanded to every aspect of life. Correspondingly, gaming companies need to continuously integrate resources, innovate, and update to improve performance amid the rapid developnt of the tis. Diversification strategy perfectly aligns with the planning needs and developnt goals within the gaming industry. Against the backdrop of economic globalization, diversification strategy, as the preferred mode for business developnt, is equally applicable to gaming companies. This paper uses Sanqi Mutual Entertainnt Company as an example to elucidate the impact of diversification strategy on the performance of gaming companies.
Keywords: Diversification strategy; gaming companies; performance; impact; Sanqi Mutual Entertainnt Company
Diversification strategy is a market strategy employed by businesses during operations to conquer new markets and explore them further. It is also a strategic plan used to evade risks encountered while operating a single business by targeted and prepared entry into new business fields. Applying diversification strategy in gaming companies can effectively enhance company performance, bringing about a transformation process in the company's developnt from quantitative to qualitative changes.
1. Macro Background of Diversification Strategy
Entering 2021, with the strong control of the pandemic by the state, people's lives resud normalcy, and the economy and culture showcased a promising recovery scenario. On April 30, 2021, data released by the National Bureau of Statistics indicated that the national cultural industry developnt had largely recovered to pre-pandemic levels [1]. This news is particularly advantageous for the gaming industry, which holds significant weight within the cultural sector. Although the arrival of the pandemic did not heavily impact the gaming industry, the inability to conduct offline activities consistently affected the performance of gaming companies. With the warming up of the cultural industry, for most gaming companies, this symbolizes that the great developnt and prosperity of the cultural industry can propel more gaming companies to embark on the path of sustainable developnt [2].
From the outbreak of the pandemic last year to the current stabilization, the state promulgated relevant policies from various aspects, like finance, system, and financial supports, to foster cultural industry developnt. Although the pandemic hindered people's movents, it could not control the speed of online network spreading. The ergence of ever-increasing new dia promoted the developnt of the cultural industry during the pandemic control period. However, due to multiple enterprises vying to enter the online market, the competitive landscape within the cultural industry beca intensely fierce. Many traditional offline enterprises couldn't withstand the pandemic impact and were eliminated from society, yet nurous culturally transformative industries successfully erged within this short two-year period. Most of these enterprises relied on diversification strategy mode to accelerate transformation and upgrade, which garnered rich rewards during the pandemic prevention period where consur levels significantly improved, acquiring diverse developnt modes and inco channels. For instance, the transformation undertaken by Sanqi Mutual Entertainnt during the pandemic control period is worth emulating by many gaming companies [3].
2. Brief Analysis and Classification of Diversification Strategy
(a) Brief Analysis of Diversification Strategy
Diversification strategy was proposed by the father of strategic managent, Igor Ansoff. In his book "What is Corporate Strategy," he ntioned the classification of diversification strategies. This globally influential strategic model finds references in managent policy guidelines across multiple countries, leading today to every enterprise, big or small, seeking a foothold in line with diversification strategy developnt models [4].
(b) Classification and Implications of Diversification Strategy
There are four types of diversification strategies: horizontal diversification, vertical integration, concentric diversification, and comprehensive diversification. The four modes derived from the diversification strategy each carry distinct implications. Horizontal diversification refers to enterprises leveraging original conditions provided by the market to produce new products eting new user demands, thereby driving market consumption. Vertical integration involves enterprises deriving vertically based on their developnt conditions, penetrating other market areas to seek new consur bases. Concentric diversification focuses more on technological innovation within the existing production scope, realizing the entire process via the transformation of existing technology. Comprehensive diversification emphasizes expanding range changes, requiring enterprises to link factors related to their products, such as raw materials, technology, and markets, to expand the business scope [5].
3. Impact of Diversification Strategy on Gaming Companies' Performance
It can be said that during the operation process of all gaming companies, the impact of diversification strategy on gaming company performance is unified into two parts: changes in operation modes and strategic planning transfers. The transformation from these two parts gradually produces effects that drive the enhancent of company performance. Diversification strategy brings multi-faceted impacts, and this paper will analyze and study the impact of diversification strategy on gaming company performance with Sanqi Mutual Entertainnt Ga Company as the example [6].
(1) Changes in Operation Modes
Currently, Sanqi Mutual Entertainnt Ga Company's main operation scope is quite extensive. This is also due to the advantages brought by the diversification strategy. The company's business not only involves interactive entertainnt operations but also extensively covers the developnt and distribution of mobile gas and web gas. Furthermore, in recent years, it has consistently innovated following technological advancents, expanding its market presence in film and ani subculture layout. It also establishes the market cultural industry chain belonging to Sanqi Mutual Entertainnt Ga Company within music, VR technology, and various live entertainnt business domains.
Sanqi Mutual Entertainnt Ga Company was founded in 1995. However, the early developnt path was not smooth sailing. Initially, the predecessor of Sanqi Mutual Entertainnt Ga Company was a small enterprise, and the entertainnt industry like ga operations was not within its industrial chain. There was always a risk of being rged by the market. However, relying on stable developnt of a single industry, Sanqi Mutual Entertainnt Company was listed in 2011. Yet, in spite of stable initial developnt and market contraction later, Sanqi Mutual Entertainnt eventually couldn't escape the fate of acquisition.
In 2014, Wuhu Shunrong Auto Parts Co., Ltd. acquired 60% of the shares of Shanghai Sanqi Mutual Entertainnt Technology Co., Ltd. Despite being nominally acquired, this represented a vital developnt opportunity for Sanqi Mutual Entertainnt. The two companies completed asset restructuring of various industries through comprehensive collaboration. It's worth ntioning that the strategic exhibition managed by Sanqi Mutual Entertainnt at that ti had already begun to show its edge. Sanqi Mutual Entertainnt Company transitioned from a single modern cultural creative company before acquisition to a listed company with parallel advanced manufacturing and modern cultural creativity dual-core businesses. Correspondingly, the company's operation strategies underwent changes, expanding the business scope initially covered by the cultural creative industry.
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