(Anti-theft, will be sent later.) Abstract: With the advancent of technology and the coverage model of intelligent networks, the rise of the ga industry in recent years is evident to the public. The dissemination thods of gas are no longer confined to rigid promotional modes, and the influence of gas has gradually expanded to various aspects of life. Correspondingly, ga companies also need to continuously integrate resources, innovate, and update to improve performance in line with the fast-paced developnt of the tis. A diversification strategy precisely ets the planning needs and developnt goals within the ga industry. In the context of economic globalization, the diversification strategy, as the preferred developnt model for enterprises, is also applicable to ga companies. This article explains 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
The diversification strategy is a market strategy tool used by enterprises during their operations to capture new markets and expand into new markets. It is also a strategic planning adopted to avoid risks encountered in operating a single business by entering new business fields with targets and preparation. Applying a diversification strategy to ga companies can effectively improve the company's performance, leading to a process of quantitative to qualitative change for the developnt of ga companies.
1. Macroeconomic background of the diversification strategy
Entering 2021, with the effective control of the pandemic by the state, people's lives have returned to normal, and the economy and culture are showing a great trend of recovery. On April 30, 2021, according to related data released by the National Bureau of Statistics, the developnt of the national cultural industry has basically recovered to pre-pandemic levels[1]. This is highly favorable news for the ga industry, which occupies a significant proportion of the cultural industry. Although the arrival of the pandemic did not have a major impact on the ga industry, the inability to conduct offline activities has always affected the performance of ga companies. The warming of the cultural industry ans that the great developnt and prosperity of the cultural industry can drive more ga companies onto the path of sustainable developnt[2].
From the outbreak of last year's pandemic to the current stability, the state has introduced relevant policies from multiple aspects such as finance, systems, and finance to support the developnt of the cultural industry. Although the pandemic halted people's travel, it could not control the spread speed of the online network. More and more new dia are driving the developnt of the cultural industry during pandemic prevention, but because each company wants to enter the online market, the competitive environnt within the cultural industry is extrely fierce. Many traditional offline companies could not withstand the impact of the pandemic and were eliminated by society, but within this short two-year ti, nurous cultural industries successfully transford and upgraded rapidly with the help of a diversification strategy, harvesting a rich reward during the pandemic prevention period when resident consumption levels significantly increased, and obtained more diversified developnt models and revenue channels. For example, the transformation made by Sanqi Mutual Entertainnt during the pandemic prevention period is worth learning for most ga companies[3].
2. Brief analysis and classification of diversification strategies
(1) Brief analysis of diversification strategies
The diversification strategy was proposed by Igor Ansoff, the pioneer of strategic managent, in his book "Corporate Strategy." This world-influencing strategy model has been involved in managent guidelines and policies of multiple countries, resulting in every large and small enterprise today seeking to secure a place according to the diversification strategy developnt model[4].
(2) Classification and aning of diversification strategies
The diversification strategy is divided into four types: horizontal diversification, vertical integration, concentric diversification, and conglorate diversification. The anings of the four different models derived from the diversification strategy also vary. Horizontal diversification refers to enterprises utilizing the initial conditions provided by the market to produce new products that et users' new demands, thereby driving market consumption; whereas vertical integration is when enterprises vertically derive based on their developnt, using product industry chains to penetrate other market areas seeking new consur targets; concentric diversification focuses more on innovation of existing technology, requiring the production of new products within the original production range, achieving this through the tamorphosis of existing technology; conglorate diversification emphasizes on expanding business range changes, enterprises need to connect related raw materials, technology, markets, and other factors of their own products to carry out the expansion of business scope[5].
3. Impact of diversification strategy on ga company performance
It can be said that in the operational process of all ga companies, the impact of the diversification strategy on ga company performance is uniformly divided into two parts: change in operational model and shift in strategic planning. These changes gradually produce effects that drive company performance improvents. The impact brought by the diversification strategy is multi-faceted. This paper will take Sanqi Mutual Entertainnt Ga Company as an example to analyze and study the impact of the diversification strategy on ga company performance[6].
(1) Change in operational model
Currently, the main operational range of Sanqi Mutual Entertainnt Ga Company is quite broad, which is also reliant on the advantages brought by the diversification strategy. The company's business not only involves the operation of interactive entertainnt but also undertakes the research and publishing of mobile and web gas. In recent years, keeping up with technological advancents and continuously innovating, it has expanded the market to the layout of film and ani ACG, and in music, VR technology, and various live streaming and other pan-entertainnt businesses, it is shaping the market cultural industry chain belonging to Sanqi Mutual Entertainnt Ga Company.
Sanqi Mutual Entertainnt Ga Company was established in 1995, but in its early developnt path, it wasn't smooth sailing. The predecessor of Sanqi Mutual Entertainnt Ga Company was a small enterprise. At first, Sanqi Mutual Entertainnt's industry chain did not involve the operation of entertainnt industries such as gas, with an ever-present risk of being swallowed by the market. However, relying on the steady developnt of a single industry, Sanqi Mutual Entertainnt Company went public in 2011. However, with poor operations and market constrictions later on, Sanqi Mutual Entertainnt ultimately 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 a 60% stake. Although it was acquired nominally, for Sanqi Mutual Entertainnt, this was a developnt opportunity worth seizing. Under multiparty collaboration, the two companies completed the restructuring of various industry assets. Notably, the strategy that Sanqi Mutual Entertainnt was operating at that ti was already starting to show its edge. Sanqi Mutual Entertainnt Company transford from a single modern cultural creative company before the acquisition into today's dual-pronged listed company with advanced manufacturing and modern cultural creativity running parallel. Accordingly, the company's operational strategy underwent changes, in the business scope of the original cultural creativity industry. In 2014, the business scope included in the original cultural creativity industry of Wuhu Shunrong Auto Parts Co., Ltd.
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