(Anti-theft, to be released at the ti.) Abstract: With the advancent of technology and the coverage model of intelligent networks, the rise of the ga industry in recent years has been evident to the public. The spread of gas is no longer confined to rigid promotional thods, and the influence of gas has gradually extended to all aspects of life. Correspondingly, ga companies need to continuously integrate resources, innovate, and improve performance in line with the rapid developnt of the tis. A diversification strategy precisely caters to the planning needs and developnt goals within the ga industry. Against the backdrop of economic globalization, diversification strategy, as a preferred mode of enterprise developnt, is also 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 strategic approach that enterprises adopt in the process of operation to gain more new markets and develop new markets. It is also a strategic planning adopted by enterprises to avoid risks encountered in operating a single business and to target and prepare to enter new business fields. The practical application of diversification strategy in ga companies can effectively improve company performance, bringing a process of quantitative to qualitative change to the developnt of ga companies.
1. Macro background of diversification strategy
Entering 2021, with the effective control of the pandemic by the country, people's lives are back on track, and the economy and culture are showing a good trend of revival. 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 very favorable news for the ga industry, which occupies a large proportion of the cultural industry. Although the pandemic did not significantly impact the ga industry, the inability to conduct offline activities has always affected the performance of ga companies. With the warming of the cultural industry, this ans for most ga companies that the great 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 the current stabilization of the pandemic, the country has issued relevant policies from multiple areas such as finance, institutions, and banking to support the developnt of the cultural industry. While the pandemic has blocked people's travel, it has not controlled the speed of spreading online networks. The ergence of more and more new dia has driven the developnt of the cultural industry during the pandemic prevention and control period. However, because every enterprise wants to squeeze into the online market, the competitive environnt between cultural industries is very fierce. Many traditional offline enterprises could not withstand the pandemic's impact and were eliminated by society at this ti. In these short two years, many cultural industries have also successfully transford. These enterprises mainly rely on the diversification strategy model to accelerate transformation and upgrade, also reaping considerable rewards and gaining more diversified developnt models and funding channels during the pandemic prevention and control period, when the residents' consumption level significantly increased. For example, the transformation made by Sanqi Mutual Entertainnt Company during the pandemic prevention and control period is worth referencing by most ga companies [3].
2. Brief analysis and classification of diversification strategy
(a) Brief analysis of diversification strategy
Diversification strategy was proposed by the founder of strategic managent, Igor Ansoff. In his book "Corporate Strategy," he ntioned the classification of diversification strategies. This world-influencing strategic model is involved in the managent guidelines and policies of multiple countries, so much so that today every small and large enterprise seeks a place according to the developnt model of diversification strategy [4].
(b) Classification of diversification strategy and its anings
Diversification strategy is divided into four types: horizontal diversification, vertical integration, concentric diversification, and total diversification. The four different modes derived from the diversification strategy also have different anings. Horizontal diversification refers to the enterprise using the original conditions provided by the market to produce new products that et the new needs of users, thereby driving market consumption. Vertical integration is when an enterprise derives from its developnt situation vertically, penetrating into other market fields to seek new consur objects through the product industry chain. Concentric diversification emphasizes more on the innovation of existing technology, requiring the production of new products within the existing production range, with the entire process realized through the transformation of existing technology. Total diversification places more emphasis on expanding the scope of operation changes, requiring enterprises to relate to factors such as raw materials and technology related to their products and markets to expand the scope of operation [5].
3. The impact of diversification strategy on the performance of ga companies
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: changes in the operation mode and the shift in strategic planning. From these two parts of change, effects gradually occur, driving the company's performance improvent. The impact brought by the diversification strategy is multifaceted. 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) Changes in the operation mode
Currently, the main operating scope of Sanqi Mutual Entertainnt Ga Company is quite extensive, which is also the advantage brought by the diversification strategy. The company's business not only involves the operation of interactive entertainnt, but Sanqi Mutual Entertainnt Ga Company also single-handedly manages the developnt and publication of mobile and web gas. In recent years, following the technology of the tis, they have continuously innovated, broadening the market to include film and ani, and shaping the market cultural industry chain belonging to Sanqi Mutual Entertainnt Ga Company in music, VR technology, and various types of live entertainnt business.
Sanqi Mutual Entertainnt Ga Company was founded in 1995, but the developnt path in the early stages was not smooth. The predecessor of Sanqi Mutual Entertainnt Ga Company was a small enterprise, and at first, Sanqi's industrial chain did not involve the operation of gas and other entertainnt industries, always at risk of being swallowed by the market. However, thanks to the steady developnt of a single industry, Sanqi Mutual Entertainnt Company went public in 2011. But with the later mismanagent 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 acquired in na, for Sanqi Mutual Entertainnt, this was a developnt opportunity worth seizing. The two companies completed the asset restructuring of various industries through multi-party cooperation. It is worth ntioning that the strategy always operated by Sanqi Mutual Entertainnt showed initial prominence at this ti. Sanqi Mutual Entertainnt Company transford from a single modern cultural creativity company before the acquisition to a dual-main business listed company now concurrent with advanced production manufacturing and modern cultural creativity, corresponding to which Sanqi Mutual Entertainnt's company operational strategy also underwent changes, as well as the business scope covered by the original cultural creative industry. In 2014, Wuhu Shunrong Auto Parts Co., Ltd. first cultural creative industry covered business scope.
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