(Anti-theft, to be sent later.) Abstract: With the progress of technology and the coverage model of intelligent networks, the rise of the gaming industry in recent years is evident to the citizens. The dissemination thods of gas are no longer limited to rigid promotional modes, and the influence of gas has gradually expanded to all aspects of life. Consequently, gaming companies also need to continuously integrate resources, innovate, and improve performance in line with the rapid developnt of the tis. The diversification strategy precisely ets the planning needs and developnt goals within the gaming industry. Under the backdrop of economic globalization, the diversification strategy, as the preferred model for enterprise developnt, is also applicable to gaming companies. This article uses Sanqi Mutual Entertainnt Company as an example to explain the impact of diversification strategy on the performance of gaming companies.
Keywords: Diversification strategy; Gaming company; Performance; Impact; Sanqi Mutual Entertainnt Company
Diversification strategy is a market strategy approach adopted by enterprises in their operational processes to occupy and open new markets. It is also a strategic planning employed by enterprises to avoid the risks encountered in operating a single business by intentionally and preparedly entering new business fields. Applying the diversification strategy to gaming companies can effectively improve company performance, bringing about a transformation from quantitative to qualitative changes for the developnt of gaming companies.
1. The Macro Background of Diversification Strategy
Entering 2021, with the effective control of the epidemic by the state, people's lives have returned to normal, and the economic and cultural sectors are showing a promising trend of recovery. On April 30, 2021, according to data released by the National Bureau of Statistics, the national cultural industry developnt has basically returned to the pre-epidemic level [1]. This is very favorable news for the gaming industry, which occupies a significant portion of the cultural industry. Although the onset of the epidemic did not greatly affect the gaming industry, the inability to conduct offline activities has always impacted the performance of gaming companies. The warming of the cultural industry implies that the great developnt and prosperity of the cultural industry can promote and drive more gaming companies onto a path of sustained developnt [2].
From the outbreak of the epidemic last year to its current stabilization, the state has issued relevant policies from multiple aspects such as finance, system, and finance to support the developnt of the cultural industry. Although the epidemic has hindered people's travel, it cannot control the speed of online network dissemination. More and more new dia have erged, driving the developnt of the cultural industry during the epidemic prevention and control period. However, due to the eagerness of various enterprises to enter the online market, the competitive environnt within the cultural industry is very intense. Many traditional offline enterprises cannot withstand the impact of the epidemic and are eliminated by society. Yet, in these short two years, many cultural industries have successfully transford, and most of these companies relied on the diversification strategy model to accelerate transformation and upgrading. In addition, they also gained significantly in the prevention and control period of the epidemic, which saw a significant increase in residents' consumption levels. They obtained more diversified developnt modes and inco channels. For example, the transformation of Sanqi Mutual Entertainnt during the epidemic prevention and control period is worth learning from for most gaming companies [3].
2. Brief Analysis and Classification of Diversification Strategy
(1) Brief Analysis of Diversification Strategy
Diversification strategy was proposed by the father of strategic managent, Igor Ansoff. In his book "Corporate Strategy," he ntioned the classification of diversification strategies. This globally influential strategic model is involved in managent policy guidelines in many countries. Consequently, every enterprise, large or small, is seeking to establish a foothold following the developnt model of diversification strategies [4].
(2) Classification of Diversification Strategies and Their anings
There are four types of diversification strategies: horizontal diversification, vertical integration, concentric diversification, and conglorate diversification. The four derived modes of diversification strategies also have different anings. Horizontal diversification refers to enterprises using the primary conditions provided by the market to produce new products that can et new user needs, thereby driving market consumption. Vertical integration is when enterprises deduce vertically based on their own developnt situation, utilizing the product industry chain to penetrate other market fields to seek new consur targets. Concentric diversification focuses more on the innovation of existing technology, requiring the production of new products within the existing production range, and the entire process is realized through the transformation of existing technology. Conglorate diversification pays more attention to expanding the range of operations, needing the enterprise to consider raw materials, technology, and market factors related to their own products to expand the scope of operations [5].
3. The Impact of Diversification Strategy on the Performance of Gaming Companies
It can be said that during the operational processes of all gaming companies, the impact of diversification strategy on company performance is uniformly divided into two parts: the change of operational mode and the shift of strategic planning. The effects gradually generated from these two parts drive the improvent of company performance. The influence 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 gaming company performance [6].
(1) Change in Operational Mode
Currently, the main operational range of Sanqi Mutual Entertainnt Ga Company is quite extensive. This is also an advantage brought by the diversification strategy. The company's business involves not only the operation of interactive entertainnt but also the research and distribution of mobile gas and web gas handled solely by the Sanqi Mutual Entertainnt Ga Company. In recent years, the company has continuously innovated in line with the tis' technology, expanding the market to include layout in film, television, and animation ACG. It is also shaping the market cultural industry chain of Sanqi Mutual Entertainnt Ga Company in music, VR technology, and various live streaming 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-sized enterprise, which initially did not involve the operation of gas and other entertainnt industries in its industrial chain, and was at risk of being swallowed by the market at any ti. However, relying on stable developnt in a single industry, Sanqi Mutual Entertainnt Company went public in 2011. However, with poor operations and market contraction in later periods, Sanqi Mutual Entertainnt ultimately did not escape the fate of being acquired.
In 2014, Wuhu Shunrong Auto Parts Co., Ltd. acquired 60% of the shares of Shanghai Sanqi Mutual Entertainnt Technology Co., Ltd. Although nominally acquired, it was a developnt opportunity worth seizing for Sanqi Mutual Entertainnt. The two companies completed asset restructuring of various industries through multi-faceted collaboration. It is worth ntioning that the strategy consistently operated by Sanqi Mutual Entertainnt was beginning to erge. Sanqi Mutual Entertainnt Company transford from a single modern cultural creativity company before the acquisition into a dual main industry listed company combining advanced production manufacturing and modern cultural creativity. Correspondingly, the company's operational strategy of Sanqi Mutual Entertainnt also underwent changes. The business scope previously covered by the cultural creativity industry was transford. In 2014, the cultural creativity industry initially covered by the business scope of Wuhu Shunrong Auto Parts Co., Ltd.
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