(Anti-theft statent, will be published later.) Summary: With technological advancents and the coverage model of smart networks, the rise of the ga industry in recent years has been evident to the general populace. The thods of ga distribution have broken away from rigid promotional modes, and the influence of gas has gradually expanded into all aspects of life. Correspondingly, ga companies need to constantly integrate resources, innovate, and iterate, and improve performance to keep pace with the rapid developnt of the tis. A diversification strategy perfectly 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 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 company; Performance; Impact; Sanqi Mutual Entertainnt Company
Diversification strategy is a market strategy asure employed in enterprise operations to capture new markets and explore new ones. It also serves as a strategic plan for enterprises to avoid risks encountered during operations of a single business. The strategy involves targeted and preparatory entry into new business fields. Implenting a diversification strategy in ga companies can effectively improve company performance and bring about a transformation from quantitative to qualitative growth in the developnt of ga companies.
1. The Macro Background of Diversification Strategy
Stepping into 2021, under the strong control of the pandemic by the nation, people's lives have returned to normal, and economic culture is also showing a favorable recovery trend. On April 30, 2021, according to related data published 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 large proportion of the cultural industry. Although the arrival of the pandemic did not greatly affect the ga industry, the inability to conduct offline activities always impacts the performance of ga companies. With the recovery of the cultural industry, for most ga companies, this signifies that the major developnt and prosperity of the cultural industry can promote more ga companies to embark on a path of sustainable developnt [2].
From the outbreak of the pandemic last year to its stabilization now, the nation has promulgated relevant policies from various aspects such as finance, institutions, and finance to support the developnt of the cultural industry. The pandemic may have hindered people's footfall, but it couldn't control the spread speed of online networks. An increasing number of new dia erged promoting the developnt of the cultural industry during pandemic prevention, yet the competitive environnt among cultural industries beca extrely fierce as each company attempted to break into the online market. Many traditional offline enterprises couldn't withstand the impact of the pandemic and were socially eliminated, but within these short two years, many cultural industries successfully transford. These companies largely relied on diversification strategic modes to accelerate transformation and upgrades, achieving significant gains during the pandemic prevention period with citizens' consumption levels notably improved, obtaining more diverse developnt modes and funding inco channels. For instance, the transformation made by Sanqi Mutual Entertainnt during the pandemic prevention period is worth emulating for most ga companies [3].
2. Brief Analysis and Classification of Diversification Strategy
(a) Brief Analysis of Diversification Strategy
Diversification strategy was proposed by the pioneer of strategic managent, Igor Ansoff. In his book "What is Corporate Strategy," he ntioned the classification of diversification strategy. This globally influential strategic mode has been involved in managent policies of various countries, leading to every enterprise striving for a place according to the developnt mode of diversification strategy today [4].
(b) Classification and aning of Diversification Strategy
Diversification strategy is divided into four types: horizontal diversification, vertical integration, concentric diversification, and conglorate diversification. The anings of the four different modes derived from diversification strategy vary: horizontal diversification refers to enterprises utilizing market's original conditions to produce new products that et users' new needs, thereby driving market consumption; vertical integration involves enterprises deriving vertically according to their developnt status, utilizing the product industry chain to infiltrate other market fields to seek new consumption targets; concentric diversification emphasizes innovation of existing technology, requiring production of new products within the existing production range, achieving transformation through existing technology evolution; conglorate diversification focuses more on expanding business scope variation, enterprises need to connect raw materials, technologies related to their products, and market factors to expand business scopes [5].
3. The Impact of Diversification Strategy on Ga Company Performance
It can be said that in the operation process of all ga companies, the impact of diversification strategy on ga company performance is uniformly divided into two parts: the change in operation mode and the transition of strategic planning. The effects gradually produced from these two parts drive the company's performance enhancent. The influence brought by diversification strategy is multifaceted. This paper will use Sanqi Mutual Entertainnt Ga Company as an example to analyze the impact of diversification strategy on ga company performance [6].
(1) Change in Operation Mode
Currently, the main operational scope of Sanqi Mutual Entertainnt Ga Company is very broad, which is also the advantage brought by diversification strategy. The company's business not only involves interactive entertainnt operations, but also fully covers the research and distribution of mobile gas and web gas. In recent developnt, constantly innovating to keep pace with technological advancent, it has expanded the market to include film layout and ani subcultures, shaping the market culture industry chain of Sanqi Mutual Entertainnt Ga Company in music, VR technology, and various live entertainnt businesses.
The Sanqi Mutual Entertainnt Ga Company was founded in 1995, but the early developnt path was not smooth. The company's predecessor was a small enterprise, initially the industrial chain of Sanqi Mutual Entertainnt did not include the operation of gas and entertainnt industries, constantly facing the risk of being swallowed by the market. However, relying on the steady developnt of the single industry, Sanqi Mutual Entertainnt Company went public in 2011, but accompanying later poor operations and market contraction, Sanqi Mutual Entertainnt ultimately couldn't 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. Despite being acquired nominally, for Sanqi Mutual Entertainnt, this was an opportunity to seize for developnt. The two companies completed asset restructuring of various industries through multi-faceted collaboration. It's worth ntioning that the strategic managent continually operated by Sanqi Mutual Entertainnt started to show its prominence at this ti, transitioning from a single modern cultural creative company before acquisition to a listed company with dual main businesses rging advanced production manufacturing and modern cultural creativity. Corresponding to this transition, the company's operational strategy also underwent changes, expanding the scope previously covered by cultural creative industries.
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