(Anti-theft, will be released later.) Abstract: With the advancent of technology and the coverage model of intelligent networks, the rise of the gaming industry in recent years has been evident to the nation. The dissemination of gas is no longer confined to rigid promotional modes, and the influence of gas has gradually expanded to all aspects of life. Correspondingly, ga companies need to continuously integrate resources, innovate, and upgrade to enhance performance in line with the rapid developnt of the era. Diversification strategy perfectly caters to the planning needs and developnt goals within the gaming industry. Against the backdrop of economic globalization, diversification strategy as the preferred developnt mode for enterprises is equally applicable to ga companies. This article uses Sanqi Mutual Entertainnt Company as an example to explain the impact of diversification strategy on ga company performance.
Keywords: Diversification strategy; Ga company; Performance; Impact; Sanqi Mutual Entertainnt Company
Diversification strategy is a market strategic tool adopted by enterprises during their operations to capture more new markets and expand into new markets. It is also a strategic plan used by enterprises to avoid risks encountered in operating a single business by purposefully and preparedly entering new business fields. Applying diversification strategy to ga companies can effectively improve company performance and bring about a process of transformation from quantitative change to qualitative change in the developnt of ga companies.
1. The macro background of diversification strategy
Stepping into 2021, with the effective control of the pandemic by the state, people's lives have returned to normal, and the economic and cultural scenes are exhibiting a great recovery. On April 30, 2021, data released by the National Bureau of Statistics showed that the nationwide cultural industry developnt has basically returned to pre-pandemic levels [1]. This is very favorable news for the gaming industry, which holds a large share of the cultural industry. Although the pandemic did not cause severe impacts on the gaming industry, the inability to conduct offline activities has always affected the performance of ga companies. The recovery of the cultural industry ans that the grand developnt and prosperity of the cultural industry can promote and drive more ga companies to embark on a path of sustainable developnt [2].
From last year's outbreak of the pandemic to the current stability, the state has issued relevant policies from various aspects such as finance, systems, and finance to support the developnt of the cultural industry. Although the pandemic hindered people's travel, it could not control the speed of online network dissemination. More and more new dia have erged, driving the developnt of the cultural industry during the pandemic control period. However, due to each enterprise wanting to compete in the online market, the competitive environnt within the cultural industry has beco very fierce. Nurous traditional offline enterprises could not withstand the impact of the pandemic and were eliminated by society. But in this short two-year period, many successfully transford cultural industries have erged, and these enterprises mostly relied on the acceleration of transformation and upgrading through diversification strategy. During the pandemic control period, where residents' consumption levels significantly increased, they also gained substantial returns, acquiring more diversified developnt modes and revenue channels. For example, the transformation Sanqi Mutual Entertainnt Company undertook during the pandemic control period is worth emulating for most ga companies [3].
2. Brief analysis and classification of diversification strategy
(1) 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 strategy. This world-influencing strategic mode is involved in the managent guidelines and policies of several countries, resulting in every enterprise, big or small, seeking a place according to the developnt mode of diversification strategy today [4].
(2) Classification and its aning of diversification strategy
Diversification strategy is divided into four types: horizontal diversification, vertical integration, concentric diversification, and overall diversification. The four different modes derived from diversification strategy have distinct anings. Horizontal diversification refers to enterprises using the original conditions provided by the market to produce new products that can et new custor demands, thus driving market consumption. Vertical integration is when companies derive vertically based on their developnt situation, perating other market fields with their product industry chain to seek new consur objects. Concentric diversification places more emphasis on the innovation of existing technology, requiring the production of new products within the existing production scope. The entire process is realized through the transformation of existing technology. Overall diversification focuses more on expanding the scope of operation and requires enterprises to expand their business scope by connecting with the raw materials, technology, and market factors related to their products [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: changes in operation mode and shifts in strategic planning. The changes in these two parts gradually generate effects that drive the enhancent of company performance. The impact brought about by diversification strategy is multifaceted. This paper will analyze and study the impact of diversification strategy on ga company performance using Sanqi Mutual Entertainnt Ga Company as an example [6].
(1) Changes in the operation mode
Currently, the main operating scope of Sanqi Mutual Entertainnt Ga Company is very extensive, which also relies on the advantages brought by diversification strategy. The company's business not only involves interactive entertainnt operations, but Sanqi Mutual Entertainnt Ga Company is also solely responsible for the research and distribution of mobile gas and web gas. In recent developnts, it constantly innovates in line with era technology, expanding the market to cover film and television, and ani's second dinsion. It is also shaping the market cultural industry chain belonging to Sanqi Mutual Entertainnt Ga Company in music, VR technology, and various pan-entertainnt businesses such as live streaming.
Established in 1995, the developnt path of Sanqi Mutual Entertainnt Ga Company was not smooth initially. Its predecessor was a small enterprise, and the initial industrial chain of Sanqi Mutual Entertainnt did not involve the operation of ga and other entertainnt industries, always facing the risk of being rged into the market. However, relying on the steady developnt of a single industry, Sanqi Mutual Entertainnt Company was listed in 2011. But with subsequent poor operations and market contraction, Sanqi Mutual Entertainnt did not ultimately 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, for Sanqi Mutual Entertainnt, this was a developnt opportunity worth seizing. Through multi-party collaboration, the two companies completed the asset restructuring of various industries. It is worth ntioning that the strategy that Sanqi Mutual Entertainnt had been operating began to show its splendor at this ti. Sanqi Mutual Entertainnt Company transford from a single modern cultural and creative company before acquisition to a dual-main business listed company with advanced production manufacturing and modern cultural creativity in parallel. Correspondingly, the company's operational strategy of Sanqi Mutual Entertainnt was also undergoing changes, within the business scope covered by the cultural and creative industry. In 2014, Wuhu Shunrong Auto Parts Co., Ltd. first included the business scope covered by the cultural and creative industry.
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