"Bang!"
Yale extended his hand, flicked the Artifact Spirit's forehead, and said sharply, "Watch closely! Those Magical Beasts are coming!"
Suddenly, the chessboard began to change, with pieces erging as light and shadow.
These words are what I say when lonely till old age.
Though these Magical Beasts are nurous, their marching lacks order, showing that it's not truly a group behavior. In the context of economic globalization, diversification strategy as the preferred developnt model for companies also applies to ga companies. This article uses Sanqi Mutual Entertainnt Company as an example to explain the impact of diversification strategy on the performance of ga companies.
Keywords: Diversification Strategy; Ga Companies; Performance; Impact; Sanqi Mutual Entertainnt Company
Diversification strategy is a market strategy adopted by enterprises during operations to capture new markets and expand existing ones. It's also a strategic plan employed to evade risks encountered in single-business operations, entering new fields with targeted preparation. Implenting diversification strategy in ga companies can effectively improve company performance, bringing a transformative evolution from quantitative to qualitative growth in the company's developnt.
1. The Macro Background of Diversification Strategy
Heading into 2021, with the governnt's strong control over the pandemic, people's lives returned to normal, and economic culture showed a significant recovery trend. On April 30, 2021, according to 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 good news for the ga industry, which occupies a large proportion in the cultural industry. Although the pandemic did not cause significant harm to the ga industry, the inability to carry out offline activities still impacts ga company performance. With the cultural industry's recovery, for most ga companies, this ans that the grand developnt and flourishing of the cultural industry can promote more ga companies to embark on a path of sustainable developnt [2].
From last year's outbreak to the current stabilizing of the pandemic, the governnt has issued policies supporting the cultural industry's developnt from various aspects like finance, system, and economy. Though the pandemic stopped people's travel, it could not control the online network's transmission speed. The ergence of more new dia has promoted the cultural industry's developnt during the pandemic prevention period. However, as companies scramble to enter the online market, the competitive environnt is becoming very tense within the cultural industry. Many traditional offline enterprises could not bear the impact of the pandemic and were eliminated by society. But in these two short years, many transford cultural industries erged successfully, largely relying on the accelerated transformation and upgrading brought by diversification strategy mode. During the pandemic prevention period, residents' consumption levels increased significantly, resulting in abundant gains and more diversified developnt models and funding channels. For example, the transformation done by Sanqi Mutual Entertainnt in the pandemic prevention period is worth learning from for many ga companies [3].
2. A Brief Analysis and Classification of Diversification Strategies
(a) A Brief Analysis of Diversification Strategy
Diversification strategy was proposed by Igor Ansoff, the father of strategic managent. In his book "What is Corporate Strategy," he ntioned categories of diversification strategy. This world-influencing strategic model is involved in managent policies across many countries, so today, every enterprise is seeking a place according to the diversification strategy developnt model [4].
(b) Classification and aning of Diversification Strategy
Diversification strategies are classified into four types: horizontal diversification, vertical integration, concentric diversification, and overall diversification. The anings derived from these four different modes also vary. Horizontal diversification refers to companies using original market conditions to produce new products that fulfill user demands, thus driving market consumption. Vertical integration ans companies derive vertically according to their developnt situation, using the product industry chain to infiltrate other market fields to find new consumption targets. Concentric diversification focuses more on innovation in existing technology, requiring the production of new products within the existing production range, realizing transformation through existing technology. Overall diversification emphasizes expanding changes in business scope. Enterprises need to consider factors related to their product raw materials, technology, and market to expand the business scope [5].
3. The Impact of Diversification Strategy on Ga Company Performance
It can be said that in the operational process of all ga companies, the impact of diversification strategy on ga company performance is divided into two parts: changes in operation mode and shifts in strategic planning. From these two parts of transition, effects gradually erge to boost company performance improvent. The influence brought by diversification strategy is multifaceted. This paper will use Sanqi Mutual Entertainnt Ga Company as an example to analyze and study the impact of diversification strategy on ga company performance [6].
(1) Changes in Operation Mode
Currently, the main operation scope of Sanqi Mutual Entertainnt Ga Company is very broad, relying on the advantages brought by diversification strategy. Not only does the company's business involve interactive entertainnt operations, but Sanqi Mutual Entertainnt Ga Company also wholly manages the developnt and distribution of mobile and web gas. In recent years, following technological advancents, it expands its market to include film and ani, also shaping the market cultural industry chain belonging to Sanqi Mutual Entertainnt Ga Company in music, VR technology, various livestreams, and other pan-entertainnt businesses.
Sanqi Mutual Entertainnt Ga Company was established in 1995, but the initial developnt path was not smooth. The predecessor of Sanqi Mutual Entertainnt Ga Company was a small enterprise, initially not involving ga and entertainnt industry operations, consistently facing the risk of being absorbed by the market. But relying on the steady developnt of a single industry, Sanqi Mutual Entertainnt Company was listed in 2011. However, along with the later poor operation and market contraction, Sanqi Mutual Entertainnt eventually could 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. Although nominally acquired, for Sanqi Mutual Entertainnt, this was a developntal opportunity worth seizing. The two companies completed asset reorganization through multi-faceted collaboration. It's worth ntioning that the strategy Sanqi Mutual Entertainnt has always operated was beginning to show its successes. Sanqi Mutual Entertainnt Company transford from a single modern cultural creative company before acquisition into today's dual main industry listed company of advanced production manufacturing and modern cultural creativity, correspondingly changing the company's operational strategy, covering business scope of the original cultural creative industry.
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