(Anti-theft, will be sent in due course.) Abstract: With the advancent of technology and intelligent network coverage, the recent rise of the gaming industry is evident to the public. The thods of ga dissemination are no longer restricted to stereotypes, and the influence of gas has gradually expanded to all aspects of life. Correspondingly, ga companies need to continually integrate resources, innovate, update, and improve performance in line with the rapid developnt of the tis. The diversification strategy precisely aligns with the planning needs and developnt goals within the gaming industry. Under the background of economic globalization, the diversification strategy, as the preferred model for corporate developnt, is equally applicable to ga companies. This article illustrates the impact of diversification strategy on the performance of ga companies, using Sanqi Mutual Entertainnt Company as an example.
Keywords: diversification strategy; ga company; performance; impact; Sanqi Mutual Entertainnt Company
A diversification strategy is a strategic market approach adopted by businesses during their operations to occupy new markets and expand into new markets. It is also a strategic planning adopted by businesses to dodge the risks encountered during the operation of a single venture and to enter a new business field with targeted and prepared asures. Implenting diversification strategy in ga companies can effectively improve company performance, bringing about a process from quantitative change to qualitative change in the developnt of ga companies.
1. Macroeconomic 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 economy and culture are presenting a thriving recovery landscape. On April 30, 2021, data released by the National Bureau of Statistics showed that the overall developnt of the national cultural industry has basically recovered to the pre-pandemic level [1]. This is very favorable news for the gaming industry, which occupies a significant portion of the cultural industry. Although the pandemic did not greatly affect the gaming industry, the inability to carry out offline activities still impacted the performance of ga companies. The revival of the cultural industry implies that the great developnt and flourishing of the cultural industry can drive more ga companies onto the path of sustainable developnt [2].
From last year's pandemic outbreak to the current stabilization, the nation has issued supportive policies from multiple aspects like finance, system, and capital to promote cultural industry developnt. Although the pandemic halted people's travels, it couldn't control the online dissemination speed. More and more new dia erged, driving cultural industry developnt during pandemic prevention and control. However, as various enterprises rush to enter the online market, the competitive environnt of the cultural industry is extrely fierce. Nurous traditional offline enterprises could not withstand the pandemic's impact and were eliminated by society. However, during these short two years, many successfully transforming cultural industries erged, most relying on diversification strategy models to accelerate transformation and upgrade, making significant gains during the period of increased resident consumption levels. They have obtained more diverse developnt modes and sources of fund inco, and Sanqi Mutual Entertainnt Company's transformation during pandemic prevention and control is worth learning from for most ga companies [3].
2. Brief analysis and classification of diversification strategy
(a) Brief analysis of diversification strategy
Diversification strategy was proposed by Igor Ansoff, the pioneer of strategic managent. In his book "Corporate Strategy," he ntioned the classification of diversification strategies. This world-impacting strategic model is involved in policy directions of several countries, leading to every enterprise now, big or small, seeking a place according to the diversification strategy developnt model [4].
(b) Classification and aning of diversification strategy
There are four types of diversification strategies: horizontal diversification, vertical integration, concentric diversification, and conglorate diversification. The four different models derived from the diversification strategy have distinct anings. Horizontal diversification refers to enterprises utilizing original market conditions to produce new products that et new user demands, thereby driving market consumption; vertical integration is enterprises spreading vertically based on their developnt status, penetrating the product industry chain into other market fields to seek new consur targets; concentric diversification emphasizes the innovation of existing technologies, requiring the production of new products within the existing production scope and realizing transformation through existing technology; conglorate diversification emphasizes range change expansion, enterprises need to connect factors related to their products such as raw materials, technology, and market to expand the scope of operations [5].
3. Impact of diversification strategy on the performance of ga companies
In all ga company operations, the impacts of diversification strategy on ga company performance are uniformly divided into two parts: the change in operation mode and the shift in strategic planning. From the structure of these two parts, effects gradually erge, driving the improvent in company performance. The impacts brought by diversification strategy are multifaceted. This thesis will analyze and research the impact of diversification strategy on ga company performance, taking Sanqi Mutual Entertainnt Ga Company as an example [6].
(1) Change in operation mode
Currently, the main operating scope of Sanqi Mutual Entertainnt Ga Company is very extensive, which takes advantage of the benefits brought by the diversification strategy. The company's business not only involves interactive entertainnt operations but also undertakes the research and publication of mobile and web gas. In recent years, it has been constantly innovating with the era of technology, broadening market layouts to films and ani, and is shaping the market cultural industry chain belonging to Sanqi Mutual Entertainnt Ga Company within music, VR technology, and various other entertainnt businesses.
Sanqi Mutual Entertainnt Ga Company was founded in 1995, but its initial developnt path was not smooth. The predecessor of Sanqi Mutual Entertainnt Ga Company was a small enterprise, and initially, its industry chain did not involve ga and other entertainnt industry operations, facing the risk of being rged by the market at any ti. However, relying on the steady developnt of a single industry, Sanqi Mutual Entertainnt Company listed in 2011. Nevertheless, following poor operations and market tightening later on, Sanqi Mutual Entertainnt ultimately couldn't escape the fate of being acquired.
In 2014, Wuhu Shunrong Auto Parts Co., Ltd. acquired 60% equity in Shanghai Sanqi Mutual Entertainnt Technology Co., Ltd. Despite the nominal acquisition, it was a developnt opportunity worth seizing for Sanqi Mutual Entertainnt. Under multi-faceted coordination, the two companies completed asset restructuring across various industries. It is noteworthy that the operational strategies consistently implented by Sanqi Mutual Entertainnt have shown initial success by this ti. Sanqi Mutual Entertainnt Company transford from a single modern cultural creative company pre-acquisition to a dual-main business listed company of advanced manufacturing and modern cultural creativity concurrently. Correspondingly, Sanqi Mutual Entertainnt's company operational strategies are also undergoing changes, from the business range covered by the original cultural and creative industry. In 2014, the business range covered by the original cultural and creative industry by Wuhu Shunrong Auto Parts Co., Ltd.
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